Legal Question in Bankruptcy in Virginia

Bankruptcy and vehicles owned

My mother is filing for bankruptcy. We have titled in both our names (and with right of survivorship)a 2003 Jeep Grand Cherokee worth approx. $20k. The title is free and clear. How do I keep the car. She is 80 years old and does not drive. It is my sole mode of transportation and was bought as a spend down when my deceased father went into nursing home. Thanks


Asked on 2/04/04, 5:25 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Bankruptcy and vehicles owned

The fact that it was bought as a "spend down" certainly does not help, as she apparently "spent down" money that should have been available to pay creditors.

You will be lucky under the circumstances if the trustee agrees that you are entitled to a 50% share of the car, but assuming s/he does, you will be free to negotiate a buy-out from the trustee of his/her interest. If the car is worth $20K, half is $10K, and Mom can exempt $2000, leaving $8000 in equity for the trustee (if Mom has room left on her homestead deed, she can use some or all of that to exempt some of the remaining equity). You may be able to pay a little less than the trustee's equity to buy his/her interest and settle.

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Answered on 2/04/04, 5:51 pm


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