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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2889
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I own two homes and it looks like I am going to have to let

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I own two homes and it looks like I am going to have to let one go back. I have one of those bad 80/20 loans and can't refiance it.Home prices dropped and now I owe like 40 more than it's worth. My concern is that I have a truck that I make payments on and have about $10K equity in it. If the mortgage company comes after me for the loss after I let it go back, I'll be forced to file bankruptcy. Will I have to sell my truck if I have to file bankruptcy? Because if I do I want to put it in my parent's name.

I haven't missed a house payment yet, but this month will be my last payment.
If you have to file bankruptcy, you can protect (exempt) a portion of the equity in the car.
The bankruptcy will discharge the mortgage balance remaining.
The Oregon exemption: #18.345 - Motor vehicle to $2,150

So, you should get a local appraisal on the truck, since online bluebooks are sometimes high. If after subtracting the loan balance and the exemption, if there is still equity, you can buy that back from the court (give them the cash difference) to keep the vehicle.

If you sell before the case is filed, that must be disclosed, you must receive fair market value, and you must spend down on your necessities, since the court will examine that transaction.

Hopefully your value is low enough to qualify for chapter 7. You can also file chapter 13, to pay back enough debt to protect and keep the truck, adding the truck note into the consolidation as well. Good Luck.
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