Newbie -Confused About Car Exemption

[HGolightly]

Boy, am I glad to have found this forum! I'm getting ready to file Chapter 7 and I've got the NOLO book, but still have questions...

I have a 2003 Ford Focusthat I am paying on. I am current and have never missed a payment. I would like to keep the car by re-affirming my debt during bankrupcy.

The retail value according to NADA is $6,125 and I owe $6,493 on the loan.

With California's System 2 (I don't own a home or have any non-exempt property - in fact, for all my credit card debt, when I add everything I own up - it really isn't much. How does that happen anyway?)- the auto exemption amount is $3,300 and there is a $1,100 wild card exemption.

If I apply the $3,300 +the $1,100 that gives me $4,400 in total exemption for the car. Does that mean, the trustee would most likely not want to take the car, because he'd have to pay me $4,400 and then not have enough left over to pay Ford what I owe on the car? Woud I (could I ) take some of the homestead allowance and add it to the car to take the exemption all the way up to the value of the car? or am I just really confused?

I appreciate this forum so much. Every night I read and read until I can't take in any more information.

Thanks!

[MSbklawyer]

Boy, am I glad to have found this forum! I'm getting ready to file Chapter 7 and I've got the NOLO book, but still have questions...

I have a 2003 Ford Focusthat I am paying on. I am current and have never missed a payment. I would like to keep the car by re-affirming my debt during bankrupcy.

The retail value according to NADA is $6,125 and I owe $6,493 on the loan.

With California's System 2 (I don't own a home or have any non-exempt property - in fact, for all my credit card debt, when I add everything I own up - it really isn't much. How does that happen anyway?)- the auto exemption amount is $3,300 and there is a $1,100 wild card exemption.

If I apply the $3,300 +the $1,100 that gives me $4,400 in total exemption for the car. Does that mean, the trustee would most likely not want to take the car, because he'd have to pay me $4,400 and then not have enough left over to pay Ford what I owe on the car? Woud I (could I ) take some of the homestead allowance and add it to the car to take the exemption all the way up to the value of the car? or am I just really confused?

I appreciate this forum so much. Every night I read and read until I can't take in any more information.

Thanks!

Trustees are interested in equity. Specifically, non-exempt equity. They're not going to take anything unless, after the expenses of sale and the satisfaction of any liens, there is going to be some money left over to distribute to your unsecured creditors. Based on your figures, you don't have any equity. You're upside down by $368. You won't need to use any exemptions to keep the car. There is no equity to exempt.

[ToughSpot]

HGolighty you are completely in the clear the exemption is used if you have equity in the car. There is not snow balls chance in (well you know where) that the Trustee would take your car as they have to pay off the loan and then try to sell it for more, leaving enough profit to cover transaction costs and a profit for the estate. All you will need to do is reaffirm and you are good to go.

[HGolightly]

Yay! Thank you!!!