QUESTION
Can I sell the vehicle and purchase another one of equal value not exceeding the $4000 exemption limit?
Asked on Dec 14th, 2013 on Bankruptcy - New York
More details to this question:
I had the meeting of the creditors on 12/6/13 and have completed the Post Management course (form 23) on 12/12/13. I listed my vehicle as personal property, as well as listed it as exempt ($2,400). I recently encountered transmission problems and do not have the money to fix it. I have not heard back from court, if my case has been discharged yet.
1 ANSWER
Assuming that you filed a Chapter 7 petition, you can buy another vehicle now, regardless of its value. If you intend to trade in the old vehicle, you cannot do so until your Chapter 7 Trustee "abandons" the estate's interest in the vehicle. Contact the Chapter 7 Trustee and verify that the estate will not be administering the old vehicle. If you are in a Chapter 13 bankruptcy and want to trade in the old vehicle you should contact your Chapter 13 Trustee to ascertain how he wants you to proceed.
Answered on Dec 19th, 2013 at 11:18 PM