I plan on filing for BK at the end of this year and my $7K car would be exempt. (Wildcard exemption in CA).
However, I believe that if I received a judgment and lien before I file, I could lose my car. So I was wondering if I would be able to sell my car during a lawsuit. Would it be fine as long as I sold it before a judgment was issued against me?
Would this be okay with my BK as long as I sell my car for a reasonable price? I understand that selling my car for much less or giving it away is a red flag prior to BK's.
Do I have any other options to protect my car so I don't have to sell it? I really would like to keep my car but exemption is only $2,550 in CA.
Thank you in advance.