? on Trustee taking your vehicle because of equity

[cin6004]

I have a truck, blue book says it is worth 18,700 and I owe 1,800 so I was told the Trustee will take it and give me $5,000 (this is in Arizona) because it has equity.
My question is when will they take it? and when will I get the $$. There is no way I can get back and forth to work without a vehicle. Will I have to be without one?

[discouraged]

If this is something your lawyer told you, I'd discuss it with that person. If it was just someone who 'knows' things, I'd ask my lawyer what to do and if that statement was true.

[Peeps]

Have you already filed for BK?

[cin6004]

I have not filed, doing the paperwork now.

[Peeps]

Well then you still have time to make arrangements for transportation. What if, for example, you chose to trade in your truck for something newer and more reliable before filing? Something that, after the trade, would fall within your state's limits for equity in a vehicle? There are some threads on making sure to have reliable transportation prior to filing BK here on the forum (just do a search for 'em). There's nothin' wrong with a little pre-planning. Just do your research and make sure you stay within legal bounds. Best of luck.

[despritfreya]

If you elect to file the 7 your Trustee will ask for the turnover of the vehicle around the time of the 341. However, if your attorney is any good, he/she will indicate to the Trustee that the vehicle is FULLY insured (it needs to be) and that you simply can't turn it over without payment of $5. The Trustee will most likely allow you to use the vehicle until just before it is auctioned. You will be paid $5k once the Trustee has collected the $$ from the high bidder.

However, I have some real concerns over the advice you may or may not be getting. By doing the 7 at this time you would be giving away the equivalent of $11,900.00 (value, less amount owed, less your exemption). Why would you do this? Peeps is on the right track but simply using the vehicle as a trade-in will still result in equity over the allowed exemption. Granted the equity cushion will be less, but it will still be an issue.

Since you have not filed bk my advice is to sell the vehicle, payoff the lien, use 5-6K as a down payment on a newer vehicle (this keeps the equity at or below what is allowed) and live off the balance BEFORE you file bk. Keep track of how you spend the $$$. Doing this gives you the benefit of the non-exempt equity instead of lining the Trustee's pocket.

Des.

[AngelinaCatHub]

Des makes sense. You can get a very nice used car for 5 or 6K. Paid for cars get better gas mileage. LOL. Also stock up on essentials such as storable foods and paper products, soaps at today's prices. Get debt free and if you have a house, repair what needs fixing do it. Watch buying any luxury items though as a "windfall" and blowing it on a vacation or the like would be questioned. Keep everything on the exempt side. 'Hub

[cin6004]

Only problem is I have a judgement that will start garnishing my wages in 2 week and It could take a while to sell my truck. I seem to be in a catch 22. I also can not drive a car (have night blindness and need to be above headlights or everything is blurry)

[chicagoannie]

Only problem is I have a judgement that will start garnishing my wages in 2 week and It could take a while to sell my truck. I seem to be in a catch 22. I also can not drive a car (have night blindness and need to be above headlights or everything is blurry)

Cin - Does AZ have Carmax's? I know the one by me here in IL offered a very fair price for a mommyvan I sold several years ago. I had the money in my hand that day.

Des - your advice is priceless!

[cin6004]

Thanks all, I don't know what I would do without this site. Nothing like your whole world crumbling down on you and the trustee wants to take the one thing you want to keep. I appreciate everyones advise. There is a carmax, I think I will go there Sunday and see what they say.

[notapplicabl]

sorry to post randomly but how do you make a thread visible to everyone?

[despritfreya]

Only problem is I have a judgement that will start garnishing my wages in 2 week and It could take a while to sell my truck.

If your employer has received a writ of garnishment you can petition the State Court to reduce the percentage that is taken out. The standard (maximum) is 25% of net after taxes. It can be reduced by a judge down to 15%. Unfortunately I cannot explain what to do since I never practice in State Court. I would imagine, however, that the garnishment papers your employer received will explain how you can do this. At least this would buy you some time and what you do lose is "the cost of doing business". Also, if you take this approach, when you do sell the vehicle DO NOT put the $$ in a bank account. since, if the judgment creditor knows where you bank it can easily garnish the account . Lastly, since the vehicle exemption is $5k, if the judgment creditor figures out you have a vehicle with that kind of equity and you have not already filed bk, the creditor could seize the vehicle so your timing is an issue. It does appear that you are in a catch 22. Wish I could help further.

Des.

[chrisdfw]

sell the truck to carmax, use 5000 or 6000 to buy a new truck and spend the rest of the cash on something else exempt.

Letting the trustee take the truck and just give you the cash is a bad plan since you could end up in the lurch.

[TEW]

I would wait until I have the best BK plain before I files. This means you will come out of the BK in the best shape possible. See if you can buy a new vehicle with a loan against it if possible and ride the loan through. Maybe you can buy the truck back from the trusties. Sell it and get something else and fix up the house get dental work done glasses or anything else that maybe hard to do after the BK
bottom line is PLAIN PLAIN PLAIN

[cin6004]

So the blue book that I was told the trustee would look at is 18,700. but was told on line by a few car places that purchase vehicles that they would probably offer 15,500 because it had been in a accident and has a few dents and scratches in it.
would it make a difference if I got less than what they look at?