Newb!!

[325Falcon]

Hello all
This is a great looking forum I am sure I will be here often over the next few months as we embark on this jurney of BK. We go to our second attorney consult on Monday. The first raised all kinds of red flags for us.

My first question
My state of NH allows a $4000 exemption for a car. The way I see it this permitts us $4000 equity in a car. So if I have 3 cars 2 that are upside down in a loan and 1 that I own with a book value of $3900. We get to exempt the 1 with a $3900 value and the other two do not count as an asset.

Is this correct?

[JollyGG]

All three are assets. All three are exempt assets.

[CindyLou]

the two that are upside down are not assetts becuase you have no equity. Only equity is an assett. They are actually liabilities. You will not have to protect those with exemptions. You will only have to use an exemption on the one that you have equity in. Now where you may come into an issue is that in some states there are stipulations that only 1 vehicles may survive the BK per adult household member, no matter what the status of the exemption is..I'm not sure what state you are in or if that would apply. There may be more to the picture, but in my opinion, and someone correct me if I'm wrong, but the definition of an assett is something that has equity. And upside down vehichle does not meet that definition and therefore would not need to be protected by an exemption.

[BassBoy]

someone correct me if I'm wrong, but the definition of an assett is something that has equity. And upside down vehichle does not meet that definition and therefore would not need to be protected by an exemption.

Yep.

[JollyGG]

the two that are upside down are not assetts becuase you have no equity. Only equity is an assett. They are actually liabilities. You will not have to protect those with exemptions. You will only have to use an exemption on the one that you have equity in. Now where you may come into an issue is that in some states there are stipulations that only 1 vehicles may survive the BK per adult household member, no matter what the status of the exemption is..I'm not sure what state you are in or if that would apply. There may be more to the picture, but in my opinion, and someone correct me if I'm wrong, but the definition of an assett is something that has equity. And upside down vehichle does not meet that definition and therefore would not need to be protected by an exemption.

But it would need to be listed on SCHEDULE B - PERSONAL PROPERTY.
Wouldn't it also need to be listed on SCHEDULE C - PROPERTY CLAIMED AS EXEMPT and list the claimed exemption?