Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
First, you are being threatened by a credit card company to take a vehicle that does not even have a lawsuit or judgment against you. This is illegal. If they are informing you that once they do have a judgment against you they can garnish assets that is one thing, but until they have gone to court they cannot take your Honda. Even then your vehicle is exempt up to $2,500.00.
If you file bankruptcy certain assets are exempt from being taken by the bankruptcy court. Depending on what you took out in 2003 it is most likely exempt if it is a qualified retirement plan.
In Kentucky here are the exemptions:
HOMESTEAD Real or personal property used as residence to $5,000; sale proceeds exempt
IInsurance / Annuities:
Group life insurance proceeds, unlimited amount
health or disability benefits, unlimited amount
fraternal society benefits, unlimited amount
annuity contract proceeds up to $350 per month
life insurance policy if beneficiary is a married woman, unlimited amount
life insurance proceeds if policy prohibits proceeds from being used to pay creditors, unlimited amount
life or casualty insurance benefits, unlimited amount
life insurance proceeds or cash value if beneficiary is someone other than insured, unlimited amount
Pensions / Retirement Plans:
Firefighters and police officers, unlimited amount
teachers, unlimited amount
state employees, unlimited amount
urban county government employees, unlimited amount
other pensions, unlimited amount
MISCELLANEOUS Alimony, child support is needed for support
Property of business partnership
PERSONAL PROPERTY Burial plot to $5,000 in lieu of homestead
Clothing, jewelry, articles or adornment and furnishings to $3,000 total
Lost earnings payments needed for support
Medical expenses paid and reparation benefits received under motor
vehicle reparation law
Motor vehicle to $2,500
Personal injury recoveries to $7,500 (not to include pain and suffering
or pecuniary loss)
Wrongful death recoveries for person you depended on needed for
PUBLIC BENEFITS Aid to blind, aged, disabled, public assistance
Crime Victims' Compensation
TOOLS OF TRADE Library, office equipment, instruments and furnishings of minister, attorney, physician, surgeon, chiropractor, veterinarian or dentist to
Tools, equipment, livestock and poultry of farmer to $3,000
Tools of non-farmer to $300
WAGES Minimum 75% of earned but unpaid wages; bankruptcy judge may
authorize more for low-income debtors
WILDCARD $1,000 of any property
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