Confused about reafirming car note

[anafan]

I need some clarification. I live in Ohio and will file Chapter 7 Bk beginning of 2012. I want to reaffirm my car note. I will owe approximately $1200.00 on a 2006 Malibu. Current Kelly BB value is $10k. If I reaffirm does the equity even come into play? I've gotten a no and a yes. This is very important to me. Please help!

[NoMoreCards]

You have equity in it if it is reaffirmed or not..yes, any asset and equity will have to be disclosed.

[anafan]

The big problem I have is the Kelly BB value is way too high for this car. It has a bunch of stuff wrong with it. The mileage is only 50k but it needs new tires all around, an alignment, something is knocking under the front end, rear brakes and drums. Various dings and dents....I have no garage.

I can't afford to fix it because I am paying so much of my paycheck into the credit cards. So my only answer when i have to fix something....is the evil....credit cards.

I have had enough of this no-so Merry Go Round!

I tried to trade the car in for a cheaper car and the dealership where I bought it said the trade in value was about 6k....that was 8 months ago. How is it worth 10k now?

But......I guess my next question is, if I use the wild card and car exemption on the car.....minus what I owe, leaves an equity balance of about $2600.


So do I get the opportunity to pay the equity amount left over in payments to the trustee? Is so, how many months do you get to pay? Is like a payment plan? Will they take into consideration that I will be paying the reafirmed amount?
I guess I have alot of questions. Sorry, and thanks for the help!

This is making my head hurt.....

Help!!

[malf1204]

Equity comes into play but the value of your car is the Kelly Blue Book Retail Value minus the retail cost of any repairs necessary to bring the vehicle back to "Clean Retail Value". If you have scratches in the paint, bad tire, chips in the windshield, dirty/stained carpet upholstry or any mechanical problems you can deduct those costs from the KBB value to determine the cars true value for equity purposes.

[lillymarlene]

So do I get the opportunity to pay the equity amount left over in payments to the trustee? Is so, how many months do you get to pay? Is like a payment plan? Will they take into consideration that I will be paying the reafirmed amount?
I guess I have alot of questions. Sorry, and thanks for the help!

This is making my head hurt.....

Help!!

You may get the opportunity to pay the equity back to the trustee. When I filed bk in 2010, the auto exemption for Massachusetts was only $700. If I filed chapter 7, I was told by my lawyer, that I could "buy back" my car from the trustee, for payments of about $500 per month.

[malf1204]

The goal here would be to get a valuation of your car that would fit within your exemptions and then you would owe nothing to the trustee.

[anafan]

I just checked NADA value and its $7700. Much less than the 10k Kelly has my car valued at.

So how do I find out which the trustee the court uses? It would be the Northern District of Ohio.

I read one case where the debtor submitted estimates for the repairs his car needed and they took it off the equity amount.

I know my car needs tires, brakes, the rear bumper has 2 dings and scratches all over the bumper. One of the rims is bent from a hit and run driver bouncing off my tire, there's a crease in the wheel well above that tire.It needs front end work. The interior would need to be cleaned, muddy weather, all spring, the carpet is tan....and is stained.

I have someone to fix all the important stuff for a good price, but I have to pay in cash, which is going towards credit card debt.

[anafan]

also just thought of another question.

Say i use my wild card exemption on my car, along with the auto exemption allowed by the state....and there's still an equity balance of $2000.00 that the trustee wants.

if I stop paying my credit cards now, I could have about that much saved up by the time I file to pay most of that. But the cash exemption in Ohio is only $400.

Will the trustee just take the money and pay it towards the amounts I owe to my creditors? Or can I use that cash (in excess of the state exemption) to pay towards the equity amount I can't exempt?

In other words, can I stand before the trustee with cash in hand, in excess of the cash exemption, and have him apply it to the equity of my car?

If anyone understands my convoluted question......I salute you!

[Drazil65]

You could take your car into CarMax and get an appraisal in writing so you will have something solid to go on. Our attorney is having us take both cars to CarMax to have appraised for our upcoming filing.

[delphinus317]

You could also take it to a local garage & get a written estimate for all the work it needs to prove a lower value for the vehicle. I did this in relation to the value of a truck I sold shortly before filing. I sold it for over $3,000 less than KBB value, but I also have an estimate of over $3,000 work it needed. My attorney said this was fine. My 341 is on Monday, so I guess we'll see if the Trustee questions it.

Good luck!!