We live in Colorado which allows for $5000 of a vehicle to be exempt. I do not know if this amount doubles if a married couple files.
Anyway, our situation is this. We own one car outright and in it's condition, it's likely worth around $4,000 for private party. Kelly Blue Book lists it as "poor" after answering their quiz and will not give a price quote, but "fair" condition is $5700. It need about $2000 worth of body and mechanical work so I'd guess we're good to go. But obviously an appraisal is going to need to be done to truly know.
The one car that we have the loan on, we bought it in September of '06 and have about $19K left to pay on it, and it's worth about $16-18K. No equity there obviously. We are completely current with the payments and will stay that way. I don't know if I'm reading the forms right, but it seems like there is a limit on how much you can spend on payments... we are under that limit. If it even exists in the first place. I am looking at line 23a of the 22A form. This is the car we really need to keep and I'd hate to give it up. Obviously, if I have to I have to, but it's useful to us being in good shape and being able to traverse the terrain and snow out here, unlike the other car. I wouldn't be terribly upset if we had to give up the other one and pay cash for an "old reliable" in its place. But still... I don't want the hassle. I just want to keep what we've got.
Next issue is, I may not have a job at the time of the BK filing. I'm a full time college student and we're filing probably just before I graduate. In one place, the wording said "Motor vehicles used for work to $5,000" but in another, it simply says "One or more motor vehicles or bicycles kept and used by any debtor in the aggegate value of $5,000." The second wording comes straight out of the law books, revised as of October 15, 2007. So even if I wasn't working yet, we could keep a car for each of us?
Basically I just want to know if this sounds like a scenario where we could keep both cars?
EDIT: I wanted to also mention that both are in my husbands name only and we are not a community property state.
Anyway, our situation is this. We own one car outright and in it's condition, it's likely worth around $4,000 for private party. Kelly Blue Book lists it as "poor" after answering their quiz and will not give a price quote, but "fair" condition is $5700. It need about $2000 worth of body and mechanical work so I'd guess we're good to go. But obviously an appraisal is going to need to be done to truly know.
The one car that we have the loan on, we bought it in September of '06 and have about $19K left to pay on it, and it's worth about $16-18K. No equity there obviously. We are completely current with the payments and will stay that way. I don't know if I'm reading the forms right, but it seems like there is a limit on how much you can spend on payments... we are under that limit. If it even exists in the first place. I am looking at line 23a of the 22A form. This is the car we really need to keep and I'd hate to give it up. Obviously, if I have to I have to, but it's useful to us being in good shape and being able to traverse the terrain and snow out here, unlike the other car. I wouldn't be terribly upset if we had to give up the other one and pay cash for an "old reliable" in its place. But still... I don't want the hassle. I just want to keep what we've got.
Next issue is, I may not have a job at the time of the BK filing. I'm a full time college student and we're filing probably just before I graduate. In one place, the wording said "Motor vehicles used for work to $5,000" but in another, it simply says "One or more motor vehicles or bicycles kept and used by any debtor in the aggegate value of $5,000." The second wording comes straight out of the law books, revised as of October 15, 2007. So even if I wasn't working yet, we could keep a car for each of us?
Basically I just want to know if this sounds like a scenario where we could keep both cars?
EDIT: I wanted to also mention that both are in my husbands name only and we are not a community property state.
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