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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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my car is paid for. i need to file chapter 7. carmax said they

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my car is paid for. i need to file chapter 7. carmax said they would give me $14,000. can i sell my car and buy a less expensive car that i will be allowed to keep? state of Virginia.

Thank you for your question. I am happy to assist you.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open and nonconfidential forum.

Typically what is done in such a situation is that the debtor will sell the car that is over exemption and purchase a new vehicle thereby reducing the equity in the car. For example, you could sell your car and use some of the proceeds for your prebankruptcy living expenses and the balance as a down payment on a new car

I hope that it helps to know this information

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Customer: replied 6 years ago.
Should I sell the car before I claim and purchase one for a lesser value?
typically that would be helpful
Customer: replied 6 years ago.
ok... and finally, do you know if I use the money from the sale of the car to purchase another. how much am I allowed in the state of VA?
You can review all the exemptions at this link:

$2000 in the vehicle is exempt. In addition to the $2000 you may apply up to $5000 of unused homestead exemption or $10,000 if it is a work vehicle
Ellen and other Bankruptcy Law Specialists are ready to help you