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California definition of reasonable vehicle? Intend to reaffirm.

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    California definition of reasonable vehicle? Intend to reaffirm.

    Does anyone know what vehicle value/payment a trustee will agree is reasonable? I currently have a $26,000 minivan (2011 Odyssey) that I owe 26,000 on and pay $380 a month on. It is currently our only vehicle and I can't talk my wife into giving it up for an old one. However, I need to add a second vehicle. If I add a 2014 Honda Accord LX or sport with a total loan of $22,000 or less and a total payment of $270 or less, would the trustee view that as an unreasonable vehicle? Is reasonableness subjective?

    It gives me a bit of heartburn to be honest. Since I have student loans, CH7 will only wipe out only $28,600 of unsecured debt. Getting rid of those credit card payments would allow me to pay for the car and everything else we need with at least $150 to savings before my wife's income vs being $500 short and not filing. She is still looking for a job at the moment, but she's been out of the workforce for 10 years as a stay at home mom so it is more difficult. I really want a car that has modern mpg (35+mpg), modern crash safety, will last me 20 years or so, and will protect idiot teen drivers 7 years from now if I let them borrow it. Well, what I really want is a car with crash avoidance features...but that's so expensive it is off the table. The things I want are hard to find in a midsize vehicle older than 2011...and a payment on a 2011 is about the same as a new one if I extend the terms, but then I risk getting upside down again. I think the minimum loan I can get is $10,000 on a car, which would be pretty cheap. I'm just not going to be in a position to handle surprise repairs for a few years especially after my wife's $1,200 in dental work (crowns) and probably $650 for new tires and brake fluid change on the van this fall.

    I guess even a less safe car is still safer than my bike... I was originally planning on buying a leaf for 14k and uber low operating cost before the crash test dummy smashed it's head on the dash and died after missing the airbag. ha.

    #2
    You
    You use your local IRS standards to determine the amount of a car payment that is an acceptable expense. I think it's in the $490/month range.

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      #3
      On the means test, you can deduct the entire car payment on line 42. If your car payment is not as high as the IRS standards for the ownership costs (yours are lower), you deduct the difference on line 24.

      Here's the means test form: http://www.uscourts.gov/uscourts/Rul...rent/B_22A.pdf

      You can find the allowed ownership costs at the bottom of this page: http://www.justice.gov/ust/eo/bapcpa...xp_Stds_WE.htm
      LadyInTheRed is in the black!
      Filed Chap 13 April 2010. Discharged May 2015.
      $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

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