Urgh... trustee is asking for car appraisal

[jenbow]

The trustee wants to appraise our vehicles. I am worried about our 2005 Ford 250. We almost have it paid off.. two payments left totalling $750.00.. The private party value is $5300 and in excellent condition like $6700. The thing that I am worried about most is we just replaced the engine. It was a used engine but I am afraid this will make the truck worth more. Also, I am not sure if we need to disclose this or if the appraiser will ask us this question.

Urghh.. this is not fun..

[shark66]

If the appraiser asks, you do have to dislose the information. If he/she doesn't...well, they never asked...

Try to limit the answers regarding any matter to "yes" and "no" when replying to any questions asked by the appraiser...less is more here, most likely...

I'm not necessarily certain that this is a big deal to begin with, given that it's a used engine...

Where did you get the values for the vehicle for, BTW?

Good luck.

[jenbow]

I got the values from Kelly Blue Book.. private party value. Actually, I messed up the first post. The amount is $6300 fair and $8200 excellent. The vehicle isa 2005 Ford F250 Super Duty Regular Cab XL Pickup 2D 8 ft. We owe $700 on the lien... so if the vehicle comes in a fair maybe we would owe trustee only $600

[shark66]

KBB is not a good place to start in my modest experience.

What one would use for evaluation is NADA which generally gives far lower values than KBB.

Think about it this way: if you were to surrender the vehicle, it would be sold wholesale at the lowest price imaginable. There's no "private party" assessment there. They would get the lowest of lows that a used car dealer would offer them...

http://www.nadaguides.com/Cars/Research-Center

Good luck.

[jenbow]

thank you.. NADA actually came in lower. Appraisal is Monday.. guess I just need to try not to think about it. Thanks Shark

[despritfreya]

KBB is not a good place to start in my modest experience. What one would use for evaluation is NADA which generally gives far lower values than KBB.

Unfortunately the Trustees in Arizona use KBB as their starting point. The appraiser - and I suspect that I already know who that will be - will view the vehicle and report back to the Trustee. OP needs to re-blue book it using "trade-in" value which is closer to the wholesale value of the auto and then wait for the appraiser's report.

OP you are allowed a $5K exemption in a vehicle and your spouse is allowed $5K in a vehicle or you are both allowed 1 vehicle with 10K equity. Depending on what the appraiser says, your Trustee will entertain an offer from you to purchase the non-exempt equity HOWEVER that offer will most likely be used as an opening bid at a bk sale. If no one bids over your offer, you will become the high bidder. Typically, if the total non exempt equity is less than $1,500.00, you should be able to simply cut a check and be done with it as setting the matter for a bk sale is probably not worth the time and effort of the Trustee.

If the equity is simply too much to deal with and you do not want to lose the vehicle(s) you need to consider converting either to a Chapter 13 or a Chapter 11. If you do not have an attorney, find one as converting is not an absolute right.

Des.

[jenbow]

Des - wow.. thank you. I swear people on here are so much better than an attorny.

So the trustee looks at the trade in or the private party value?? The trade in is much lower than the private.

Also, I did not know we are allowed 10,000 in a single vehicle. My vehicle is a 2010 mazda with no equity and then we have our husbands truck. I dont think the truck would appraise over $10,000 - no way. So maybe this would make us ok then?

Again - thank you all.

[despritfreya]

Also, I did not know we are allowed 10,000 in a single vehicle. My vehicle is a 2010 mazda with no equity and then we have our husbands truck. I dont think the truck would appraise over $10,000 - no way. So maybe this would make us ok then?

My clients maximize their exemptions (benefit of having an attny as opposed to going pro se). If the married couple has two vehicles and one of those vehicles has little or no equity and the other has more than 5K of equity, they do not claim an exemption in the upside down vehicle. They claim the stacked ($10K) exemption in the vehicle with the equity.

If you did not maximize your exemption and you are sure that 1 of the 2vehicles has no equity (its upside down due the lender's lien that is recorded on the title) then amend Schedule C. Remove the exemption from the upside down vehicle and claim the full 10K exemption in the free and clear vehicle (allowed if you are married and have filed a joint case). The Trustee has 30 days from the filing of the Amended Schedule C to object but he has no basis to object.

The only way the Trustee can get at the upside down vehicle is if he is sneaky enough to cut a deal with the lender for a release of its lien for less than the amount owed thus creating equity for the estate. This is highly unlikely.

Des.

[artgood]

Our attorney had a get an appraisal on one of our vehicles ahead of time ('98 Jeep Cherokee). The "official book" listed it at $5000. The appraisal came in at $2500. KBB and the like don't do justice to dings, dents and such when they make a value estimate.

[SunshineGal]

We also had a certified appraisal prior to filing, the values came in right around *trade in value* on Nada or Kelly's Blue Book.

[tcreegan]

Hi jenbow,

Putting in the used engine = major mechanical problems, in the first 5 years! This should lower the appraised value. You and I know a good used engine is a major improvement, but the appraiser is comparing your vehicle w/ vehicles that have smoothly running original motors. And if you have a big oil stain on the driveway, you might strategetically place the motor....

Hope this goes smoothly for you.....

Tom in Colo

[jenbow]

you all are making this so much better for me. The appraiser comes in at 5:00 so I will let you all know what happens