Second meeting with attorney... some worries.

[artgood]

Second meeting with attorney down. A few more documents to collect, some more money to save, and then we file at the next meeting.

We have run into one problem. We own both of our cars free and clear (2001 Chevy Prizm, and a 1998 Jeep Cherokee), and they are both registered in my name (not mine and my wife's). So, that means I will be over the exemption in Indiana. Which means, according to my lawyer, we may lose one of the vehicles.

Not sure what we are going to do.

[ccsjoe]

Wouldn't they qualify under household though? I'm not familiar with Indiana, but it sounds like it's not a community property state. If your attorney is correct, you'll probably have to get a fair market value for one of the cars (go to a used car lot, get a certified appraisal as to how much they would buy it from you for) and then, if it becomes an issue, you can negotiate buying back with the trustee. That's the angle I'd take, but again, I am not familiar with Indiana at all.

[artgood]

They do qualify under household, but there is an issue because they are both registered in my name. I am going to get them appraised and see what happens. The "book" says my Jeep is worth $5200! I only bought if for $3500, and since I bought it the windshield has cracked and the radio/CD player quit working.

[ccsjoe]

I don't understand how titling can be an issue since both cars are clearly part of household of more than 1 person. Maybe I'm missing something, but it just doesn't ring right to me. Far be it from me though to question your attorney. Worst that can happen is you have to buy back one of them from trustee.

Make sure on the appraisal that you get the value that the dealer would buy them from you at!!!

[Pandora]

I dont understand why if you're both filing - you cannot claim the exemption even if they are only in your name alone... ??? You're not filing by yourself - you're filing together, correct? Does the title say "or survivor" on it by chance?

Just seems very... strange.....

[artgood]

Let me try to explain it (as best as I can) the way it was explained to me:

In Indiana there is an $8000 wildcard. Bankruptcy law in Indiana allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted. However, because the cars are registered in my name only, they fall only under my wildcard exemption. I would totally use up my wildcard with the value (supposedly) of the two vehicles, leaving me nothing for personal property of my own (clothes, etc.). So, my attorney said that since my wildcard is taken completely by the vehicles, I have nothing to contribute towards our personal property. So, I would most likely have to surrender one of the vehicles.

Does that make any sense? Not to me either.

EDIT:: I did find this online... maybe this is why:

When it pertains to marital property, Indiana is an "equitable distribution" state. When it pertains to debts, both spouses have responsibility for debts jointly incurred during the marriage, solely incurred debts are the responsibility of the account holder spouse.

Since the vehicles are registered and titled in my name only (I don't know why we did that!), then they are my responsibility, and fall only under my wildcard exemption, leaving me nothing for other property.

[ccsjoe]

No Art, it does not make sense to me at all. I looked up Indiana exemptions and it does not allow a separate automobile exemption other than the personal property 8K wildcard. That being said, what value is your attorney listing the cars under-KBB, NADA, or certified dealer buy-back appraisal? Talk him into using the latter (which you will go get) and I'm pretty sure you'll have a reasonable amount of breathing room. If trustee asks why, just state it was impossible to accurately depict the vehicles' true state of disrepair under KBB online modeling.

Here's something in Indiana exemption law that I fuond interesting and may apply to you:

Property held as tenancy by the entirety may be exempt against debts incurred by only one spouse
34-55-10-2(b)(5)

What still makes no sense about this to me is that if you're filing joint, the cars are part of the household regardless of actual ownership (you or her or joint).