Vehicle secured asset value is less than the debt amount owed...

[quest42]

Schedule D Question -
Secured loan - the vehicle's asset value is less than the debt owed...

The pay-off amount of my debt is $3,800 and the trade in value is $2,400. What happens?

How do I list this on Schedule D?

 

[dmharris26]

Schedule D Question -
Secured loan - the vehicle's asset value is less than the debt owed...

The pay-off amount of my debt is $3,800 and the trade in value is $2,400. What happens?

How do I list this on Schedule D?

that's kind of funny...i'm using the same form...trying to file on thursday....and asked the same question to several attorneys...and on this website. i have yet to get a straight answer yet either!!! i keep looking to see if you get a response. wish i could help!

 

[dmharris26]

that's kind of funny...i'm using the same form...trying to file on thursday....and asked the same question to several attorneys...and on this website. i have yet to get a straight answer yet either!!! i keep looking to see if you get a response. wish i could help!

okay....just got done filling my forms out using the same program. i guess no one is going to answer our question so if it helps, i'll tell you what i did. on schedule d....fill in your creditor and what you still owe on the vehicle. the market value is the blue book value. don't mark any box on the right unless you plan to go to your lender and do a reaffirmation agreement. ( i did not) your statement of intention will have "none" typed and the car is left out of the exemptions. this way you can keep the car as long as you continue making payments. there is no exemptions because you owe more than the car is worth. i hope i helped a little!!

 

[SkankCheese]

As long as you owe more than it's worth you're ok. If you owe less than it's worth than you have equity in it. If it more than what you are allowed to claim as exempt- from my understanding the trustee will want to yank it.

Some states dont force you to sign a reaffirmation agreement- mine doesn't. But under the Official Form 8, the statement of intention- I had to write under 'property to be retained' that I planned to keep the car by making payments- or something of the sort.

 

[quest42]

Thanks... the replies helped me...

Even though I owe $1,400 more than the car is actually worth as a trade-in, I still want to keep it. As long as I can keep making the payments!