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How likely am I to lose my car in a Ch. 7 bankruptcy?
Toledo, OH
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Posted about 1 year ago in Bankruptcy / Chapter 7
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I have $25,000 of credit card debt and one of the 2 CC companies is suing me, prompting me to consider Chapter 7. My concern is that I may lose my car in a Ch 7 and I'd like to know the likelihood of that occurring. My car is a 1999 Mercury Sable LS and it is fully paid off. I did a Kelly's blue book value on it, and it came up to $2700 private and 1700 dealer trade-in value. I originally bought the car about 20 months ago for about $3,900. I live in Toledo, Ohio if that helps. Any help would be greatly appreciated.
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Answers (2)
Frank S Hong
This attorney is licensed in Washington.
Posted about 1 year ago.
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It may be a possibility. A bankruptcy debtor under Ohio exemption law has personal property (motor vehicle) exemption up to one thousand dollars ($1,000.00). There is also a personal property (wild card) of four hundred dollars ($400.00) that could also be applied. Based on your value determination, even with the wild card, since all the equity is not covered by the exemption(s) the Chapter 7 trustee can sell the vehicle and distribute the assets. If this were to happen, you would be entitled to the value of your exemption.
Greg Reichenbach
This attorney is licensed in Ohio.
Posted about 1 year ago.
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Soon the exemption amounts for Ohio will increase. After that time, it will be much less likely that the trustee would take the car you described. I recommend speaking with a qualified bankruptcy attorney in Toledo to find out if you are qualified to file a Chapter 7 bankruptcy, and whether it is a good idea for you.
You may also want to ask an attorney about the option of defending you against the collection suit against you, especially if those two debts are the only real reason you are considering bankruptcy.
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