Depending upon which exemption scheme is selected and your
circumstances, you may exempt up to $100,000 in equity. When
calculating your equity you should use a value that is based upon a
forced liquidation as opposed to the best selling conditions to
arrive at a value for your home. Once you know the value, subtract
the amount owed plus selling and transfer costs from the value to
calculate the equity. In the depressed California market, liquidated
properties are often valued less than what we like to think the
property is worth.
Depending upon which exemption scheme is selected, you make keep
your car if your equity is equal to or less than the allowed
exemption. Generally speaking, depending upon the exemption scheme
selected, you may exempt as little as $1200 or as much as $9100.
When calculating your equity you should use the Kelly Blue Book or a
comparable guide. Once you know the value, then subtract the amount
owed from the value to calculate the equity.
Generally, most courts understand that you
need a car to work to get back on your feet. Apply rules of common
sense here: If you own vintage cars which are free and clear and
worth thousands of dollars, you are probably not going to be able to
keep them. If, on the other hand, you have a car worth $10,000 and
you owe $8000 on it, you will most likely keep it. Again, the need
to talk to a good lawyer should be evident. Most leased vehicles
have no equity and therefore are entirely exempt. If you owe money
on your car or it is leased you must still make the payments. In
those instances you will have to redeem or reaffirm the property to
keep it. However, in some circumstance your representative can
re-negotiate the loan or the lease to get a more favorable deal for
you.
I may have other ideas for you!! Contact me at:
435-668-7885 or email: rod@rodusa.com
Disclaimer:
This information deals with Chapter 7 consumer bankruptcy. Each state
has its own bankruptcy laws, so you need to check with your state for
details. Information dealing with Chapter 13 bankruptcy and consumer
debt restructuring is not discussed in the above. The information
contained above is provided for general information
purposes only and is not intended to be a legal opinion nor legal advice
nor is it intended to be a complete discussion of all the issues related
to the area of Chapter 7 consumer bankruptcy. Every individual's factual
situation is different and you should seek independent legal advice
regarding specific information.