Q: How to handle vehicles in Chapter 7 bankruptcy in New York?
I am planning to file for Chapter 7 bankruptcy and need advice on how to handle the vehicles in my name. My wife's car is financed and currently has no equity. I own a van worth about $4,000, which I intend to keep. Additionally, I have an unregistered, non-working vehicle valued at around $500. I have not yet consulted with a bankruptcy attorney. How should I proceed regarding these vehicles in the bankruptcy process?
A: Your vehicles should be exempt and you will not lose them, but you should consult with a local bankruptcy attorney to go over all of your assets and see if you qualify for a Chapter 7 bankruptcy.
Martha Warriner Jarrett and Timothy Denison agree with this answer
A: The vehicles should not present any problems in a Chapter 7 filing. The $4,000 van will be exempt from your Trustee's liquidation efforts. The wife's vehicle with no equity will not be liquidated by the Trustee--if you want to keep the vehicle just continue making the monthly payments. The unregistered, non-working vehicle worth $500 will not be liquidated by your Trustee--a Chapter 7 Trustee will not start an "asset" case over $500.
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A:
Meeting with a bankruptcy attorney should be your first step, as they can provide guidance specific to your situation in New York. Your situation involves multiple vehicles with different circumstances, and professional legal advice will help protect your interests.
The financed car with no equity in your wife's name may not significantly impact your bankruptcy filing, but you'll need to decide whether to continue payments or surrender it. For your working van worth $4,000, New York state exemptions allow you to protect up to $4,550 in vehicle equity, which means you should be able to keep it through the bankruptcy process.
The unregistered, non-working vehicle valued at $500 should be disclosed in your bankruptcy paperwork, but its low value and non-operational status mean it's unlikely to affect your case significantly. Before filing, gather all documentation related to these vehicles, including titles, loan statements, and proof of insurance, as you'll need these for the bankruptcy process. Remember that complete honesty about all assets, including vehicles, is essential during bankruptcy proceedings.
Timothy Denison agrees with this answer
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