Will they make me sell it?

[dormonid]

California

I will be filing for chapter 7 very soon. Credit card and medical bill are the debts.
I am still (and will continue) making payments on a car I bought 1 year ago.
Now my question: I own a 1974 Volkswagen bug that is not worth much (less than $800). Do I get to keep this car or will I be forced to sell it?
Thanks!

 

[AttorneyOney]

When you file, you can list property that you claim as exempt. If no one objects to your claim of exemption, the trustee won't take that property from you. California is one of the states that has "opted out" of the federal exemption scheme, so you will need to look to California law to see how much property of what kinds you can exempt. My guess is that an $800 car would probably be exempt, but please check for yourself -- I understand that California Civil Procedure section 703.140 may be relevant, but California is one of the states where one MUST be locally trained to be sure of what the law is on any given subject.

 

[Ladynred]

CA has 2 bankruptcy 'systems' for you to choose from. One has a much higher homestead exemption (50K or more) and lower exemptions for personal property, and the other has a lower homestead exemption of 15K but higher exemption levels for personal property, vehicles and other things. You pick which system would best fit your situation. In system 2, the unused portion of the 15K homestead exemption can be used to exempt ANY property. Vehicle exemption by itself is $2400. I think you can likely exempt the old VW Bug - and its probably not even worth $800 at an auction.

 

[dormonid]

Thank you very much!