Legal Question in Bankruptcy in California

I wonder whether my understanding about the following answer to the bankcruptcy question is correct.

Question 1

If I paid off auto loan as much as $7000 while the current value of the car is $10,000, is following answer correct?

SCHEDULE C - PROPERTY CLAIMED AS EXEMPT

VALUE OF CLAIMED EXEMPTION: $7,000

CURRENT VALUE OF PROPERTY WITHOUT DEDUCTING EXEMPTION: $10,000

Question 2

However, ccp 703.140(b)(2)provides that the debtor's interest, not to exceed two thousand seven hundred seventy-five dollars ($2,775) in value, in one motor vehicle.

Does this mean that I cannot claim more than $2,775? If not, I don't understand what debtor's interest means in this ccp 703.140.

Question 3

SCHEDULE D - CREDITORS HOLDING SECURED CLAIMS

I paid $7000 to auto loan company while the current value is $10,000. However, the auto loan company says that I have to pay additional $9,000 to own this car immediately because total purchasing price was $16,000 while financed amount was $12,000. In this case, is following answer correct?

AMOUNT OF CLAIM WITHOUT DEDUCTING VALUE OF COLLATERAL: $7,000

UNSECURED PORTION, IF ANY: $10,000-$9,000=$1,000

Question 4

Do I need to list up entire household items in SCHEDULE C - PROPERTY CLAIMED AS EXEMPT? Or can I just claim as Household goods, Furnishing, Books, Apperal as a whole under $8,000 11 U.S.C. � 522(d)(3)?

Thank you so much for your time and answer to read my questions in advance.


Asked on 9/12/12, 3:15 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Answer 1: To the extent exemptions are available, you use exemptions to protect equity. If the care is worth $10,000 and you owe $7,000, you protect $3000. If you the car is worth $10,000 and owe nothing, you protect $10,000.

Answer 2: An unused portion of the homestead exemption can be used as a wild card under CCP Section 703.140(b)(5), so you should be able to protect the full $10,000 if you have enough left over.

Answer 3: Your question is unclear.

Answer 4: You can't use 11 U.S.C. � 522(d)(3) in California bankruptcy cases. List each household item and claim them as exempt under CCP Section 703.140(b)(3).

Answer 5: Your question show that you really need to be speaking with a qualified bankruptcy attorney.

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Answered on 9/30/12, 2:37 pm


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