QUESTION
What will happen to my 20 foot trailer if I filed chapter 7?
Asked on Sep 07th, 2013 on Bankruptcy - Texas
More details to this question:
I recently bought a trailer to transport items at cost to others to get money from transport, horses, motorcycles for snow birds etc. I bought it on credit and have owned it only for a few months, things got slow and hence the chapter 7.
9 ANSWERS
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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You can exempt tools of your trade up to $4,000 in value.
Answered on Oct 14th, 2013 at 12:30 PM
Bankruptcy Chapter 7 Attorney serving Austin, TX
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The Law Offices of Sean T. Flynn, PLLC
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This question requires more information to answer, however if you are filing chapter 7 you will need to make sure that the property is exempt. The exemption will depend on if this is used for a business or for personal transportation, if you have equity in the trailer or are making payments, and if you have other assets that you may need to protect. Also, you will need to insure that you can keep up with any payments that you may have.
Answered on Sep 11th, 2013 at 8:37 PM
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If the persons who lent you the money to purchase the trailer hold a lien against it then they are protected. You must continue to make the payment to them or they have the right to seize the trailer as payment. The balance would be discharged. If they do not hold a lien then your only option is to claim the trailer exempt under the tools of the trade exemption, which has a $10,000 limit.
Answered on Sep 09th, 2013 at 6:08 PM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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The answer depends. Do you have equity in the trailer? Often, when items are brought on credit there is very little equity, if any, at the beginning of the loan. If so, can it fit into one of the California exemptions: vehicle, wildcard, tools of trade? The last one may be applicable if the item is used as a tool in business. You say you are using the trailer to transport items for others and earning money for doing so.
Answered on Sep 09th, 2013 at 6:07 PM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
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Law Offices of Deborah A. Stencel
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The answer depends on several factors, including: titled owner's, date of purchase, value, liens, and the exemptions available to you.
Answered on Sep 09th, 2013 at 12:13 PM
You will have to list it as an asset. Use the value that you recently purchased it for as the value that it is worth minus whatever depreciation there is. And attach a security lien for how much you owe on it which will limit the equity. Use state or federal exemptions to cover the rest of the equity if possible. If you're trying to do this without an attorney you are very foolish. Do not file bankruptcy or manage bankruptcy without an experienced bankruptcy attorney.
Answered on Sep 09th, 2013 at 9:58 AM
Information provided doesn't create an attorney/client privilege nor constitute an offer of services and is only general responses to hypotheticals
What will happen to your trailer is sort of up to you. If you continue to make the payments to the lender, chances are you will be able to keep it, if you can't make the payments, expect the lender to ask the court to allow them to repo it.
Answered on Sep 09th, 2013 at 9:57 AM
Deborah F. Bowinski
You should consult with an attorney. The answer will depend upon whether there is equity in the trailer, whether you can maintain the loan payments, ad what your allowed exemptions are in the jurisdiction in which you live.
Answered on Sep 09th, 2013 at 9:48 AM
You should talk with your attorney about whether you can exempt your trailer. It may well be exempt as a tool of the trade. If so, you will be able to keep it.
Answered on Sep 09th, 2013 at 9:35 AM