May be able to file chapter 7. Expemtion ?

[Intoodeep201]

Due to reduced wages for both myself and my wife (and to mounting CC debt due to getting screwed by one of those debt settlement companies), we are considering filing Bk and might qualify for Chapt 7. Our home was refi about 4 yrs ago and due to the crash in house prices we have almost no equity in it. I would guess less than 5K but probably less but we want to stay. The wife has a new car (bought when times were good and payments are high but current. I also have a 2004 truck that is paid for and worth around $12500. I also have a cheap work car (since I drive 150 miles per day) it is worth about $500 and almost shot. I also have a worn out 1997 ranger worth scrap value but some day I would like to make a toy out of... Many years down the road... And finally a 2005 4x4 atv that I bought and my brother ended up paying for... He started using it more than I did, he paid and I gave it to him but never transfer the title... It is worth aobut $3000 but I can prove he paid for it with his bank statements.

Other than that the only assets we have is a bit of jewlery my wife has... Probably worth about $5000 total at most.

We live in illinois... Is there any reason we would lose the 2004 truck? Is there enough exemption to cover it?

Would I be better off taking a loan against it before filing and paying insurance, utilities, etc with the money?

Thanks

[sunshinepa]

Based on taking a quick look at Ill. exemptions, it doesn't look like it. If I read right, Ill. does not allow federal exemptions. The vehicle allowance is 2400.00.......don't think your truck qualifies. However, no expert. Just type a search on 2011 Ill. bankruptcy exemptions, it will bring up a list and you can go from there.

Others with more knowledge may chime in and know more. Have you talke to an attorney? Most consults are free!
Good luck.

[Intoodeep201]

What I wasn't sure about was if we could use some of the homestead exemption (we are allowed $15,000 each). But there is maybe $5000 in the house. Leaving a possible $25,000 in exemption there. We are allowed $2,400 for vehicle but I didn't know if that would be doubled since we are filing jointly, And lastly the wild card exemption is $4000. Is that doubled also?

I have spoken to an attorney, and am still getting my paper work together. We haven't decided if we will go with this attorney or not.

Thanks

[Pandora]

What you cannot exempt, you'll have to pay for or give it up to the trustee to sell to go to creditors. You get double exemptions for auto, however its generally one exemption allowance per vehicle (i.e., value of truck is $12400, exemption $2400, leaving $10K unprotected. Your wife cannot use her $2400 exemption to the same vehicle). You can however combine with other exemptions (wild card) and protect upwards of $6400 on the truck. Are you certain its value is $12K given its nearly 8 years old?

There are many threads on the forum regarding this.

[Intoodeep201]

I did a search and couldn't find the info I was looking for. I took the truck to a dealership and asked what they would give if I traded it in. The evaluated it and said it was worth $5500 because with gas prices so high they can't sell them. Is tis the value I would use or is it based on the value the attorney put (the NADA guide value)? If we can say it is only $5500 then the wildcard and auto exemtions would cover it.

[discouraged]

Others will know more but here in MN, even though my car is old and would never sell for NADA pricing, still we had to go with that. Others have stated they got written evaluations from a car dealer and were able to use it. It depends on your state guidelines I think but your lawyer will know the rules.