I live in AZ and am getting ready to file chapter 7
I have 2 vehicles which are free and clear of any title liens.
1 is a 94 Mercedes E420, value <$5K
1 is a 06 Honda Odyssey, value ~$18
I have 6 kids, and the van is the only vehicle that can handle all of us. We are told that we must sell it and buy another car. But there aren't any 8 passenger cars suitable for us.
Some say to finance a new one, but we're not sure how much new car to get as we don't want to get too much. We tried getting a title loan on the current van, but were denied.
Let's say for argument that we sell our van for $17K and go to buy a similar one for $25K. We would now have a loan against it, but probably have $17K equity
in it, would that vehicle be protected under the law? Also, after filing, the loan on that vehicle would not be a hardship.