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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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when filing for chapter 7 are we allowed to keep our vehicles

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when filing for chapter 7 are we allowed to keep our vehicles? I have two working cars that my wife and I drive to work. I also have one that is not running right now, and do not have the money. The broken car and my car are paid for, and the car my wife is driving we only owe like 1,800.00 on it.
Hi mrquero,
1) What are the Kelly Blue Book "Trade-in" values for each car, including the one on which $1800 is owed?
2) Will you be using the homestead exemption (do you own a home)?

Edited by Christina Fortunato, Esq. on 7/6/2010 at 8:41 PM EST
Customer: replied 6 years ago.

I'm still trying to find out. the damaged vehicle is woth less than 1,000. My truck is worth less than 3,000 because it has a "rebuilt" title. My wifes car is worth maybe 4,000, it is a 2005 chevy with high miliage.

We do own a home, and we have used the homestead exemption for the past three years when dealing with taxes, does that affect are case with bankruptcy?

Each debtor is allowed to keep one car with a value of $1000 or less, plus what it would cost for a trustee to sell the vehicle (approximately $500).
If the debtor does not own a home - or if the home is encumbered by a mortgage that is more than the market value of the home - and the debtor therefore does not need to use the homestead exemption, an additional $4000 of any property - including cars - can be exempted.
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