can i keep car? what exemption? Wild Card? what rule

[duciwish]

Filing Chapter 7, Michigan. I wonder if I qualify for bankruptcy. I have a vehicle worth 30,000 with a joint on title no lien holder. Is there an exemption I can put this under? Wild Card? What is the Maximum exemption on this and under what rule? Please help. Thanks

[duciwish]

Okay I guess the max is ~$13,400 with wildcard. I guess I give this car to someone.

[justbroke]

You cannot "give" that car to anyone. That would be considered a fraudulent transfer (conveyance). Depending on how the car it "titled", you may only own 50% of the value of the equity (the car). If it's titled as "joint tenancy" or the two names are connected with "and" (instead of "or") then you may only have 50% of the equity.

If the vehicle is worth $30K and you have joint tenancy, then you would have $15K of equity. Since Michigan's exemptions don't go that high, it is likely that you'd have to "buy" back "some" of the equity from the Trustee.

So let's say that you're able to exempt $11K of your equity in the vehicle and that the vehicle is titled so that it is owned by you (the debtor) and someone else (the non-debtor). Since the value is $30K and your share of the value is $15K, you'd have to pay the Trustee approximately $4K to cover the difference. Otherwise, the Trustee can motion the court to sell the car free and clear of liens and to then distribute what's left after the sale.

Please, do not try to transfer the vehicle to someone else! The Trustees look for this! They do check the motor vehicle records. I highly recommend that you consult several attorneys before you consider filing on your own (pro se). You will have some property issue and I always recommend an attorney where you have equity in real or personal property that is at risk. Don't make a mistake!

(Also, if this vehicle is titled with a non-debtor spouse, then you may have a tenancy by the entireties which is another way to title property. It would be 100% exempt if you don't share creditors.)