Car exemption - lease question

[jb4lcm]

I know there is a $6,000 maximum equity value per person for a car allowed. What if you LEASE a car? Due to not actually owning the vehicle, is this still processed as an asset if the car has more than 6000 equity?

I am still in a good position credit wise but possibly not for long. So while I am still able to finance a new vehicle I wanted to explore the options. My current vehicle I own is worth about 12,000 so I want to get a large chunk of that back to use elsewhere and not have it sitting in a car that would be taken away IF I have to go BK. So in the situation, would it be smarter to lease than to buy at this time - assuming I end up in bk?

[justbroke]

From what I understand, if you lease a vehicle you don't own it so you would not own any equity. You would simply list the lease on Schedule G -- Official Form B 6G (NOTE: there are major changes to the schedules coming on December 1, 2015 when it becomes Official Form B 106G!)

[jb4lcm]

Thank you!

[justbroke]

Don't forget your Statement of Intentions!

I never really answered your lease versus buy question. This is bankruptcy pre-planning and you really need to understand just where you're going to put otherwise non-exempt money into exempt assets. You should really consult an attorney if you have tens-of-thousands of dollars in non-exempt property and you have no way to otherwise exempt the property (or money).

Leasing can be smart if that is a financial arrangement that suits your vehicle needs (e.g. you like a new vehicle every 3-4 years). Don't lease just because you're trying to bury $12K somewhere else.