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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I am planning on filing bankruptcy in 3 months. I cannot do

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I am planning on filing bankruptcy in 3 months. I cannot do it sooner because I also did it 7 years 9 months ago. Here is my question. I have a vehicle that is worth about 9-10k. It is fully paid for. I bought it from a parent. The lein is still there because they were worried I might sell it. Because of my past history with gambling issues etc I can understand their concern. If I do decide to file bankruptcy I do not want them under any circumstances to find out. If I file and try and protect the vehicle I am guessing the court will want some kind of lein release showing the vehicle is paid off. But in order to obtain that release I will have to go to my parent, ask for the release, and then they will wonder why I am asking. So is there any way around this? Is it possible to file and have a car with a lein on it that is fully paid for? I live in Wisconsin. If I left some information out please ask. Thank you

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.

cfortunato :

Do you yet know if you will be able to "exempt" (protect) the entire value of the car? In other words, do you know if you will have to surrender the car if you file a Bankruptcy?

cfortunato :

The reason this is important is if you are able to keep the car the trustee will not be concerned about the lien. In fact, if you will be keeping the car, the trustee is unlikely to know about the lien.

cfortunato :

In other words, it is possible to file a Bankruptcy with a car that still has a lien, even though nothing is owed to the lienholder.

Customer:

Oh,

Customer:

I know that in Wisconsin 4000 of a vehicle is exempt and there is a 9k wildcard exemption, or thereabouts. Since I do not own anything besides the car I thought I could combine the 2 exemptions and keep the car, if that makes sense.

Customer:

Great answer by the way!

Customer:

I double checked and there is a 12k household exemption that I thought would enable me to keep the vehicle.

cfortunato :

Yes - if you do not have to use any of that portion for other assets, then you can use the entire amount for your car.

Customer:

Perfect. Thank you.

cfortunato :

Which means it does not matter that there is a lien on the car, it does not matter that there is nothing owed for the car, and your parents do not have to find out about your Bankruptcy.

cfortunato :

You're welcome!

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