Legal Question in Bankruptcy in California

Can I keep my cars after filing Chapter 7 bankrupcty

I want to file Chapter 7 bankrupcty. I am a resident of California. But I am afriad to lose my car. My Honda Accord is already paid-off long time ago(I own the pink slip or title). It is a 1995 Honda Accord blue book value of $6,490. Am I going to lose it? Can I exempt it?

Also I have another car(car loan currently making payments), a 1994 Honda Prelude, am making payments on it. Is this considered an asset when the bank(Bank of America) actually owns it because it's not paid-off? Technically, this is not my car, I financed it for my best friend, she drives it and I don't....I only have my name on the car loan, thats all. Do I have to disclose this as an asset while filing for Chapter 7 petition? I am worried that I have 2 cars under my name and I could lose my Honda Accord(which is paid-off) because the Trustee might think that I don't need 2 cars, when actually I only drive one car. So the Trustee will take away the only car I have and drive, which is the Honda Accord.


Asked on 12/08/01, 3:20 pm

2 Answers from Attorneys
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: Can I keep my cars after filing Chapter 7 bankrupcty

Thanks for your posting. California has two systems of exemptions, one of which allows you to keep $2,400 per vehicle, and an $800 "wildcard", or miscellaneous exemption. Exemptions can be stacked or combined.

The second set of exemptions, contained in the California Code of Civil Procedure, allows you to apply a "wild card", or miscellaneous property.

You also have a homestead up to $15,000; and any unused portion of homestead (even if you don't have a home), may be applied to any property.

Some of this, of course, depends on your total financial situation. There might be other items of property you want to keep that a miscellaneous exemption might go towards.

However, based upon what you've provided, I'd say you can keep the car, no problem.

Thanks, and if you have any other questions, need more information, or want representation, please feel free to email or call me at 1-877-568-2977 (toll free).

Read more
Answered on 12/09/01, 4:57 pm
Mark Markus Law Office of Mark J. Markus

Re: Can I keep my cars after filing Chapter 7 bankrupcty

Your questions clearly reveal that you need to hire an attorney. You have certain exemptions that you are allowed to take. I see no reason why you can't keep both of your cars, but I would need to know the value of ALL of your assets, including liens against them, as well as your monthly income and expense information to make an accurate assessment. Yes, you need to list both cars as assets. You have an equity interest in the vehicle. If you desire representation and would like a free phone consultation, please visit my webpage at http://www.bklaw.com/consult.html for what information you will need to have ready, and then give me a call to schedule a time.

Read more
Answered on 12/08/01, 3:52 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in California