We own a home
We have NEGATIVE EQUITY of over $150,000
The current Market Value of the (Wholesale - poor condition) vehicle of the the 2006 GMC is $14,342 (That doesnt take into account what the dealership(s) have told me about deducting $2000 for the body work that needs to be done, and deducting 40-60% (one dealership deducted 50%, one deducted 60% from TRADE IN VALUE, both said that whatever number is used to detrmine the 'value' of the vehicle it will have to be adjusted just like a 'recovered theft title, or anything else where the mileage has no way of being verified and cannot be sold with verified mileage, it has to be sold as is, mileage unknow or 'T.M.U' and the next title issued the will read 999,999 in the mileage space, or it will say tru mileage unknown since the odometer is broken.
That was BEFORE the transmission started acting up, with the quotes I recieved to fix the transmission (almost $4000) I have no idea what that does to the value, I imagine it is like everything else - deducted from the vehicle.
My dilemina is we HAVE NOT filed and have not started the paperwork, I need to fix the transmission or the car is useless. I dont have $4000 to fix it, I can borrow the $4000 from a friend, but to just have it taken away at Bankruptcy seems silly to borrow that much money then owe that much money - I would never put my sister in my bankrupty filing, I have held out for 4 years with hopes of being able to return to work but my conditions are getting worse and require futhur surgery but since I am never going to return to work I have no choice - when they wage garnished my wife at 25% (a $1000 a month) that nearly killed us and my mother has been filling in the gaps for us so I need to do this now. I would have done it while my wife was pregnant, but she had so many medical complications I didnt feel she could take the stress without something happening to her and/or the baby. I know it seem as if our combined income is outrageous, but we spend over $500 in medication for me alone, $400 a week (with the baby including ) in day care - I cant care for the baby, especially with the medication and its effects nevermind my disability, and our 'other' bills.
So the truck is suppose to be worht $14,000 - we owe $3800 on it at $674 per month, if I adjust it the way the dealerships have it is worth far less. (-$7000 for unknown miles, then -$2000 for body damage so the value sinks way down to $7000 - $9000 and that doesnt include the now broken transmission and I dont know what the deduction is for that, if it folllows the 'steps' that have been taken so far, it is whatever the cost of the repair is and that is deducted from the value - as the dealerships explained to me about the body work, so it's a unknown deduction for transmission). But do the courts/trustee/judges deduct and see things like this as they are in the real world? If I can protect my asset (I guess on paper I exceed the $1000 equity that is allowed on a car - only on the truck and not on the Cadillac, and I know I dont have $8000 in personal property unless you count every stitch of furniture in the house including the baby furniture - all which was purchased before the 2007 accident, and with that at full replacememnt cost I may make it to $8000 but at depreciated cost it's half of that - maybe $4000. The only jewelry we have is our wedding bands, and as I mentioned we havent purchased anything new in 5 years.
So my quandry is whether or not to borrow the money to fix the tranmission, as I dont want to gamble with my sisters money, and there is no way we would ever qualify for a 13, or to do a 13 filing and to switch it to a 7.
I know I provided you more information then you asked, but I felt that knowing the reason(s) why I was asking the question might be important, not that I am trying to 'skirt the system' or am a 'con man' I just dont know what to do and dont want to gamble with her money.
Please feel free to ask anything else - this is why I mark the question as 'high detail' because it is seemingly (to me anyways) complex.
If your vehicle cannot be sold for at least $5,000, you would be able to keep it if you file a Bankruptcy. If both of you are filing, if this is your only vehicle, and if the vehicle was acquired during your marriage, you will be able to double the exemption, so that you can keep the car if it cannot be sold for at least $10,000.
I think this is what you wanted to know. If not, please let me know.Thank you.
Sorry it took me so long to get back to you - been a very difficult weekend - anyways, I just need some clarity on a couple things.
In Florida, I know that Joint filing Bankruptcy Chapter 7 has $8,000 in personal property exemptions, and (if applicable of course) another $1000 per vehicle in 'vehilce equity'. Since we have 2 vehicle, one I am not worring about the equity because there isnt any (a 2003 Cadillac Deville with 149,890 miles on it and a $2300 not attached)
When you stated that "if it can't be sold for over $10,000' then we can keep it. With the circumstances I stated above, the 2006 GMC Yukon Denali being TMU as the odometer broke and is not working and reads 104,000 + on it, over $2000 in body work needed, and the tranmission is started to give (which is really my sticking point as I dont want to borrow the monet from my sister to have it fixed only to loose it in Bankruptcy - as I would not 'dismiss' her).
In everything I have read - and I am NOT by any means a lawyer I have NEVER seen anything about if a vehicle cannot be sold for over $10,000 dollars you can keep it in any text or books, could you please provide the Florida State statue on that were I might be able to find it, or it is a Federal Status, if so, could you please provide that statue for me?
If I borrow the money from my sister, and since we only owe (well I owe, the truck is financed in my name alone but I purchased it when we were married so i am under the assumption that it is a joint 'asset - like our home, I am not on the finance, I am on the deed, I do not think my wife is on the title - but I understand what your saying. Since we owe about $3000 on the truck and are goign to borrow ANOTHER $4000 from her, we already owe her money, can she take a 2nd chattel position on the title to insure her money, or is this even needed?
Who determines the VALUE of the vehilce, the trustee, etc and how does he do it? Is it ultimately done by a dealership, do they try and sell it first, how is a value determine in a case like this where the odometer being broken devalues the vehicle by at least 1/2 - in the case (depending on the delaer I spoke to) between $7000 -$10000 ??? As they say 'we cannot verify the mileage on it, we can only go by what it say on the odometer, it could have 150,000 on it, so they chop a $15000.00 (before the transmission and body work are deducted) to $7500.00. What is the best way I can protect my sister and her loaning me the money - ulitmately if everything went south I would still pay her, but wouldnt putting a 2nd lien on the truck help insure that position or does that look like a 'trick' or 'con job' that we would be trying to pull, I am sure that people do all sorts of dishonest things and I can't imagine that they are going to view me and my wife any differently.
Is there a better way of protecting her money she is loaning us to fix the transmission on the truck?
Thank You and I do sincerely apologize for the delay in getting back to you with your reply.
There is no statute that says if your vehicle cannot be sold for $10,000 then you can keep it. That statement was based on the fact that you and your wife have a combined personal property exemption of $8,000 plus a combined $2,000 motor vehicle exemption - both of which can be applied to your car. Applying an exemption to property means the property is protected up to the amount of the exemption.
The value of a car is the amount the car can be sold for, which is the KBB private sale value of the car.
The best way to protect your sister is to continue to pay her - which you are allowed to do - in spite of your Bankruptcy.
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