Hot Rods Strange Question.. Hot Rods and Chapter 7 bankruptcy

Anyone have any experience filing chapter 7 with a car you can't really put a value on? How does that work? 23 T-Bucket in my case and I live in Florida.

 

Banruptcy is Federal. My kids friends parents went through it, he had a real nice '55 Ford PU. He found out that it would be valued based on auction results. His lawyer advised him to start taking it apart, which he did. I don't know the outcome through.

 

Depends if it is restored or in parts. Mine were always in parts or not running condition so they had a $500 value (scrap price set by attorney). Then when you go to your discharge meeting that is when creditors can say sell it.
They can contest your bankruptcy but rarely do.
Best advice is ask your attorney.

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Well reason I mentioned Florida is that when filing in the state of Florida I would have to go by the states exemptions not the federal exemptions. In FL the vehicle exemptions are up to 1,000 and then I could use the wildcard exemptions of 4,000 for up to 5,000 total. My daily driver is valued at 1,500 on the low end of KBB leaving me 3,500 for the Bucket which as far as anyone asking is concerned I only paid "2,500" for it so just wondering if I could get away with keeping the car or not.

 

So if I claim it is not running will someone come out and actually check the condition of the car? I'm about to pull the heads to do the gaskets I could just leave the damn thing apart.

 

If it's reduced to mostly loose parts, they won't want to screw with it.

 

I would be very careful in Florida trying anything because they do investigate everything.

Jimbo

 

If you are in bankruptcy the last thing you should worry about saving is a $2500 hot rod. That being said if you are taking the heads off you may as well take the engine out. It is only a couple more bolts. Take the tires and wheels off and put donut spares on. Make sure none of it is visible when the appraiser comes to look at the car. Then you just have to hope nobody involved reads this post and calls you out for fraud.

 

A good situation for the application of the Golden Rule. Which, unfortunately, seems not in favor much these days.

Ray

 

........I think the current version is "Screw unto others as you would have them screw unto you."

 

@lothiandon1940

Rather, I think it has become ....”Screw others any way you can, but squeal like a stuck pig if anyone tries it on you”. The Golden Rule is often replaced by the Double Standard.

Ray

 

I thought it was; "do unto others, before them others do unto you"...

I am very sorry about your situation. Is it a result of this pandemic situation?

Can you sell it, or gift it to a friend or family member, then retrieve it when this is all done?

 

^^^ That's what I thought. Sell it to a good friend or relative for a buck Get it back afterwards.

 

^^^ may not be such a good idea. The quoted website is from an Attorney in Florida:https://www.attorneyfortampabay.com/blog/bankruptcy-and-selling-assets-vehicle/

 

Bankruptcy fraud is something you don't want to mess with. JMHO

 

Tell em it broke down, so you hauled it off for scrap. Worst you'd have to do is give them scrap price right?

 

You're already fucking a bunch of creditors........gotta keep the car too.....more of whats wrong with America

 

I know someone personally who spent a couple of years in prison for bankruptcy fraud in an attempt to keep a couple of antique cars. He also now has a felony on his record. Your choice, but I wouldn't try anything to try to keep the car. Be honest, let the chips fall where they may and remain a free man.

 

Why don't you sell the car (for real) and use that money to pay some of your bills? Wouldn't that be the right thing to do?

 

See...I learn. I read and I learn.

 

you no the funny or sad part of this to me, is the the need to post on a social public forum

 

You're only 29 years old and already in a situation where you need to declare bankruptcy!.............Where did you go wrong?!

 

............Not to mention all of us who sacrifice to be able to pay our bills. Someone always pays the price with higher interest rates and more difficult to get loans and lines of credit when someone else resorts to declaring bankruptcy and that's us.

 

A guy I knew back in the 60's, on the corner of his deck lid, "Do unto others, then split." Made you careful when you had to deal with him.

 

I wonder if creditors will be more willing to negotiate a deferred payment plan, especially in the current climate. Half the debtors wouldn't even be reaching out to them I'll bet. Then you don't have to go through all this. Good luck!

 

I don’t know how you came to find yourself in this unfortunate situation but if you have two cars maybe you could sell the daily driver and apply the proceeds to the bankruptcy application or bills then claim your hot rod as your work transportation and exempt it. That wouldn’t be fraud but you’d have to drive your hot rod everyday for a while. Darn.
Personally, I would do whatever I could to avoid filing for bankruptcy, but then I’m a faithful follower of Dave Ramsey’s financial system.


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If it's not titled, I don't think you don't have to tell them anything about it.

I know people who filed and when it came time for the discharge hearing, a couple of creditors always showed up. They offered to wipe their slates clean with them and start over. They even gave them a few thousand dollars in a check.
The creditors really don't want to lose anyone's business.
Sears and Montgomery Ward were two of them.

 

^^^^Best to get bankruptcy advice from an attorney who specializes in bankruptcies. It's not like filing a small claims case.

 

To all of you that answered appropriately, my hat is off to you. The fact that the OP is applying for Chapter 7 (discharge of debtors) rather than chapter 13 (debt repayment plan) indicates he without means of repayment as you must qualify these days for a discharge of debts filing. Hiding ones assets to fit the latter category is illegal, immoral and irresponsible. Americans (I am unfamiliar with other countries laws) have a legal right to hit the BK "reset button" when we find ourselves insolvent. We do not have the right to take down our creditors while we hide our toys. Just my opinion but OP, you asked (and shouldn't have really).

 

I won't get into the honesty thing, but will point out a few things about how the legal system works.

One, if it legitimately needs a head gasket, it's not dishonest to pull the heads. And if the owner is legitimately broke, it's not a crime to not spend money to repair it.

Two, the lawyer will probably pull a value out of the NADA or KBB price guides which may have no bearing on reality. I went through this in my last divorce. I had multiple non or semi-running cars including several parts cars, they assigned stupid values to all of them. A gutted body shell with the rear suspension being the only remaining parts left isn't worth $7K which would be it's worth if complete and running. And the actual condition of the car will have a big affect; is this a nicely finished, shiny paint car with few or no flaws, or a 'in progress' build? The judge had an appraiser come out in my case, he was pissed when he got there, said there wasn't even one that would fetch even $1K at auction... nobody wants to screw with non-running vehicles unless they're really valuable. In my case, my ex was very unhappy.

Three, a forced sale will only bring pennies on the dollar, particularly in the current financial market. If they send an appraiser don't try to BS him (or her) but do point out all flaws. If you get an idiot, ask for a second appraisal. They won't spend money to make a few hundred bucks or so. And if they want you to fix it, tell them you want shop rates.

Last, the bankruptcy courts either are or will be doing land-office business with what's going on, I doubt they'll spend much time trying wring every last nickel out, they'll likely grab the low-hanging fruit and move on.

Bankruptcy isn't fun and the OP may end up having to take his medicine but that doesn't mean he has to make it easy for them either.