# advice on vehicle vs bankruptcy



## lawnmowertech37 (Nov 5, 2009)

my 2004 chevy express G2500 van is almost paid for $ 600.00 is all i owe on it 

but here is the issue according to the blue book value it is worth $ 2500.00


now i am under bankruptcy what do i do about the van cause im scared if i pay it off before court date that i may loose my vehicle ?

does anyone have any advice on this 

calvin


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## bulldoglover (Nov 5, 2009)

I got nothing bro, sorry.


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## outdoorlivin247 (Nov 5, 2009)

Are you filing as a business or individual?...Is the van in your name or the business?...Have you hired a bankruptcy lawyer?...Sounds like it might be worth the $$$ if you are not sure?...


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## lawnmowertech37 (Nov 5, 2009)

outdoorlivin247 said:


> Are you filing as a business or individual?...Is the van in your name or the business?...Have you hired a bankruptcy lawyer?...Sounds like it might be worth the $$$ if you are not sure?...



van is in my personal name and the bankruptcy is a chapter 7 commercial and personal combined and yes i have a bankruptcy attorney


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## treesquirrel (Nov 6, 2009)

lawnmowertech37 said:


> van is in my personal name and the bankruptcy is a chapter 7 commercial and personal combined and yes i have a bankruptcy attorney



Not sure about chapter 7. Is there someone you trust you can sell it to then buy it back later?


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## ropensaddle (Nov 6, 2009)

lawnmowertech37 said:


> my 2004 chevy express G2500 van is almost paid for $ 600.00 is all i owe on it
> 
> but here is the issue according to the blue book value it is worth $ 2500.00
> 
> ...



Sorry to hear that, it is a gut wrenching experiance, I so far; have avoided. Your lawyer should inform you, if not, fire him and get another. They are not Gods, they work for you, make sure they do the job in your best interests.


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## Taxmantoo (Nov 6, 2009)

Did your attorney tell you to fill out your asset declaration using net realizable value, like what you could sell your watch for at a garage sale, or what you could trade your van in for at a dealer?

Your motor vehicle exemption is $2400, so if you pay it off and declare the value at $2500, you'll have to use $100 of your wildcard exemption to cover it. 
Depending on your occupation, you might also get away with exempting a 3/4 ton van as 'tools of the trade' and using your vehicle exemption on a car. But if your trade is selling small engine parts, you'll need the $1500 exemption for your inventory I would think. 

You don't own real estate, right?
So, you've got $2400 exemption on the van, $8000 for personal/household crap, clothes, computer, etc, $1500 in your business stuff, and $8300 ($7500+800) that can go for anything, bank accounts, excess value on the van or the business, etc. 
At the moment, if you use $2500 as FMV on the van, you've got a net interest of $1900 after the $600 lien. If you toss $500 at the van lender within 90 days before filing to bring your interest in the van up to $2400, it _might_ be viewed as a fraudulent transfer designed to favor one creditor over the others, but I doubt anybody would go after you for it. 
At any rate, you'll want to reaffirm or pay off the van loan so the van doesn't get repo'd. 

Since it appears that NC uses the federal exemptions, here are your more important exemptions, according to 
http://www.law.cornell.edu/uscode/11/522.html

(d) The following property may be exempted under subsection (b)(2) of this section:
(1) The debtor’s aggregate interest, not to exceed $15,000 in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor.
(2) The debtor’s interest, not to exceed $2,400 in value, in one motor vehicle.
(3) The debtor’s interest, not to exceed $400 in value in any particular item or $8,000 in aggregate value, in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.
(4) The debtor’s aggregate interest, not to exceed $1,000 in value, in jewelry held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.
(5) The debtor’s aggregate interest in any property, not to exceed in value $800 plus up to $7,500 of any unused amount of the exemption provided under paragraph (1) of this subsection.
(6) The debtor’s aggregate interest, not to exceed $1,500 in value, in any implements, professional books, or tools, of the trade of the debtor or the trade of a dependent of the debtor.


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## Rftreeman (Nov 19, 2009)

lawnmowertech37 said:


> yes i have a bankruptcy attorney


I think I'd ask him before I would ask here, I'm sure he has the correct answer unless he doesn't know about the van....


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## ponderosatree (Nov 23, 2009)

lawnmowertech37 said:


> my 2004 chevy express G2500 van is almost paid for $ 600.00 is all i owe on it
> 
> but here is the issue according to the blue book value it is worth $ 2500.00
> 
> ...



If this is your only vehicle the courts won't take it away. The courts realize that you need a vehicle to get to work.


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## lawnmowertech37 (Nov 26, 2009)

ponderosatree said:


> If this is your only vehicle the courts won't take it away. The courts realize that you need a vehicle to get to work.



thanks as long as my name is not on the owner of the title rh donnelley cannot touch it even if they do have a judgement on me


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## lawnmowertech37 (Nov 26, 2009)

Rftreeman said:


> I think I'd ask him before I would ask here, I'm sure he has the correct answer unless he doesn't know about the van....



i talked to the attorney they told me that i wont loose my van which is good news and less stress on me just getting the van paid off is my main concern but my dad is my main concern at this time he is in icu having lung issues but they did have him on a respirator last sunday morning but took him off it two days ago he is still having lung problems b ut they said he is starting to get better and that is less stress also knowing that prayers are being answered


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## logging22 (Nov 26, 2009)

Sorry to hear it man. Just keep your head up and keep sawing.



Les


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