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Can I keep 3 cars and 1 motorcycle during chapter 7 bankruptcy?
Anonymous3 views5 answers
Total combined value of all 3 cars are around $1500. Motorcycle value is around $1000. 1 car and the bike are on a personal loan that only has a 900$ balance left. I have not filled bankruptcy yet and would be able to pay that loan off first in a lump sum or keep the loan. One of the cars is my wife's we would file jointly. The motorcycle is just a toy and the 3rd vehicle is a 4x4 which is necessary in the winter and serves as backup for our other 2 clunkers. Also one more totally separate question. Can Internet and a family cell phone plan be included on the means test? I ask because it's pushing 300$ a month.
THIS IS NOT LEGAL ADVICE! YOU NEED TO SPEAK TO AN ATTORNEY WHO IS LICENSED IN YOUR STATE FOR LEGAL ADVICE. This is merely suggestions for you to think about in discussing your situation with the local attorney. If, you do not own any Real Estate or have no equity in a property, then you would have a wild card exemption which can be used to protect any other non exempt assets. You do not have that problem here, so yes you would be able to keep your vehicles. To properly answer your questions and address your concerns, the best way to handle this is with an in person consultation with an experienced Bankruptcy attorney. Use 's Find a Lawyer tool to select a qualified attorney. Good luck.
You should talk with a bankruptcy attorney immediately, before you take any action. if you try to pay off this loan before it is due it may appear to be fraud and then you will have a BIG problem in your bankruptcy. Find an attorney you trust NOW! Good Luck,
~Katie
It sounds you are attempting to do a bankruptcy yourself, which is unfortunate if you have assets you would like to keep. You should discuss your potential case with a bankruptcy attorney who is familiar with bankruptcy laws and especially bankruptcy exemptions. The cost to pay an attorney to assist you will be cheaper and less stressful than losing assets you wanted to keep.
First, you already know: EMPLOY or at least speak to an experienced attorney FIRST and SOON! The reason is your questions wont matter much at all if other issues exist affecting your case and you don't know it!
Second, the Means Test has the deductions in it which you asking, means again you have not spoken to an attorney.
Third, NO Attorney can actually state all your assets are exempt at this time. Why? Because what if you have not lived in MI for 2 years and file bankruptcy? Then another states laws will govern..Hence why it is crucial to speak to an attorney who goes through ALL issues.
Lastly, I point out next just some reasons you need to discuss with one.
You need and want to enjoy your fresh start also. But the most important thing is to meet with an attorney as you asking this question means you have not. You care about 2 goals: keeping everything you have equity in and discharging all your debts. If you don't have any of the exceptions to discharge you will obtain that goal; most exceptions are set forth in 11 USC. 523 (Google it) like child support, some income taxes, traffic (in a ch 7) and criminal fines , and presumption of student loans. But some debts are dischargeable in a ch 13 but NOT in a ch 7 so you want to make sure and your attorney will discuss any such types with you also!
Your exemptions depend on what state you have lived in in the last 2 years and thus if in your state, then your states exemptions will apply. Most persons filing keep everything they own but your attorney will confirm that with you when they learn everything you own and the equity thereof!
Some secured debts like homes, vehicles, other secured debts an attorney will discuss your options on also as you must list any debts; but that does not mean you will lose them unless you have too much equity or are in default on paying for them! Discuss those options if they apply with your attorney too.
But other issues can arise that can greatly harm your case. Just one example: If you paid back a relative $3,000 11 months ago and now file bankruptcy next week, the trustee can SUE that relative to retrieve that $3,000 (under what is called a preference) for the benefit of the bankruptcy estate. As a result, most attorneys don't charge to meet with them the first meeting so meet with one no matter what.
Many great attorneys can be found right here on in your state so look, call, and meet one as soon as you can.
You should also want to know when to file: is there an advantage of waiting versus filing now and who should you pay between now and then! Good luck and enjoy your later fresh start.
The answer depends on the state you live in. You need to speak with a Michigan bankruptcy lawyer and she can advise you on whether those assets are exempt. Every state is different. Good luck to you!
