QUESTION
Can my minor child keep his vehicle if we file bankruptcy?
Asked on Jun 12th, 2012 on Bankruptcy - Colorado
More details to this question:
His vehicle is ten years old and paid for. My vehicle is seven years old and paid for. Our other vehicle is five years old and was financed last year. Can we keep our cars?
15 ANSWERS
The answer is maybe. It depends on the amount of equity you have.
Answered on Jun 29th, 2013 at 2:28 AM
Burton J. Green
Your vehicle will clearly become part of your bankruptcy estate and subject to claims of the trustee. Your minor child's vehicle will not be part of your bankruptcy estate if the car is titled in your child's name; if it is titled in your name only, it is likely that the trustee will want to take the car. As for the other car, if there is no equity in it (difference between what you owe on it and its fair market value) the trustee will have no interest in it. All of this can be negotiated with the trustee for some form of voluntary buyback.
Answered on Jun 25th, 2012 at 5:21 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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It would depend on the way the title was given, if it is only in his name should not be a problem. If you are listed as an owner, then you will have to find an exemption under California law. That would require a full listing of your assets and debts and needs to be done with a lawyer or if you are going to represent yourself with the help of a current self-help book.
Answered on Jun 21st, 2012 at 3:59 PM
Bankruptcy Attorney serving Washington, DC
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Law Offices of Diann C. Moseley
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Probably yes. It all depends upon the exemptions laws applicable to your state and the retail value of the vehicles minus any liens on the vehicles. The more generous your state's exemption laws the more likely you will be able to keep the vehicles. Note that if your minor child's vehicle is titled in your name, the vehicle is included in your bankruptcy as an asset.
Answered on Jun 21st, 2012 at 10:34 AM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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If the car is his, it is not part of your bankruptcy estate. Otherwise, in the state of Texas, you are permitted to exempt one car for every licensed adult driver in the household.
Answered on Jun 20th, 2012 at 6:46 PM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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Retention of property will be based on the Georgia exemptions and how the property is titled. I would suggest that you contact a bankruptcy attorney in Georgia and they should be able to quickly tell you what property will be protected.
Answered on Jun 20th, 2012 at 5:59 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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It depends. When you file for bankruptcy protection, you can avail yourself of "exemptions". Exemptions are dollar amounts of property the debtor may keep even though the debtor is discharging its other debt. In your situation, in California you can apply the vehicle exemption to protect all or part of the vehicle and may be able to apply the wildcard exemption to protect the other two. Of course, that depends on whether you have wildcard left or you used it up protecting cash or other property. To ensure you apply the exemption laws properly, among many other reasons, it is best to be represented by an experienced bankruptcy attorney.
Answered on Jun 20th, 2012 at 5:35 PM
The vehicle that belongs to the minor child was paid for by you; it is considered yours. Depending upon what other property you have and depending upon the value of these vehicles, it is very, very likely that you can keep them all. Remember the bankruptcy does not take away the car lender's right to repo the car if you don't make the payments. To keep the financed car, you still have to pay for it.
Answered on Jun 20th, 2012 at 5:22 PM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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Perhaps. There are a number of exemptions which permit you to keep much, if not all, of your personal property.
Answered on Jun 20th, 2012 at 5:05 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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It depends on the state where you live, the value of the vehicles, etc. Please understand that bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Jun 20th, 2012 at 4:54 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You need to seek counsel, the present answer is maybe because there is insufficient information upon which to give you firm advice. You should not be filing bankruptcy without speaking to an attorney first.
Answered on Jun 20th, 2012 at 4:47 PM
The answer depends on who owns the cars and what other assets you own. If the car belongs to the minor. He is not affected by your bankruptcy. He keeps the car. Speak to an attorney regarding your options.
Answered on Jun 20th, 2012 at 4:44 PM
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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You are generally entitled to an exemption of one vehicle per debtor (adult) when filing for bankruptcy. However, you will still need to keep making the monthly payments on the financed vehicle. The trustee may let your son keep his vehicle depending on who paid for it and what its current value is. I suggest you consult with a bankruptcy attorney.
Answered on Jun 20th, 2012 at 4:01 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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The statutes allow you to claim up to $1000 in equity in a single motor vehicle, but a chapter 7 Trustee in bankruptcy does not want to seize your cars and sell them to pay creditors. Most Trustees will allow you to pay to be able to keep your cars. An attorney is needed for a bankruptcy. In a chapter 13 bankruptcy, you come up with a plan of paying your creditors a percentage of what you owe and the cars do not matter.
Answered on Jun 20th, 2012 at 3:39 PM
Daniel James Wilson
Child's car. A lot depends on whether it is titled in his name. If it is titled in your name the trustee will probably regard it as belonging to you. Other cars. In Colorado a married couple filing jointly have a $10,000 exemption in the equity in your cars. Since your vehicles are fairly old, chances are you will be fine.
Answered on Jun 20th, 2012 at 3:23 PM