How can I use the Purchase Option to reduce my vehicle asset? Also, have a 16 year old truck - will I be able to keep?

If you are considering a chapter 7 bankruptcy, you will be able to keep a vehicle if the equity you have in that vehicle does not exceed the amount protected by law. Let's say, for instance, that your 16 year old truck is worth $2,000.00. You can keep that truck because you can protect up to $3,000.00 in equity in a automobile. If you are married and filing jointly, you can protect up to $6,000.00 in equity. As far as a purchase option is concerned, you will have to clarify as to what you mean.