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How do they determine your vehicle value when filing bankruptcy?

I have 4 vehicles, 2 are paid off (not running) and 2 are financed. We are looking to file for bankruptcy and was wondering how they determine your cars values?



Can they force you to sell the ones that are paid off?



Can they force your to let the financed ones go back even if you get them up to current?



Do they look at the actual cars to determine value or just go off KBB?



I would hate to lose the 2 dependable cars I have that are financed and almost paid off and the 2 others just broke down in the last couple of months and are not worth much until fixed (these are paid off).



Thanks!!

 
Anonymous

Asked by Anonymous at 1:57 PM on Aug. 25, 2009 in Money & Work

This question is closed.
Answers (8)
  • You can but are not obligated to include your vehicles in a bankruptcy. They may force you to use the value of the paid off cars towards your debt, but it is highly unlikely. You can look at the kelly blue book value at the kelly blue book website. For cars the are financed the value does not matter in the one where you do not pay anything back...they just repo them. If the sell for more than you owe you actually get a check...but that rarely happens. I hope I have answered you. A bankruptcy attorney should be able to answer any questions you may have, and they typically do a free consultation!
    Rebecca727

    Answer by Rebecca727 at 3:01 PM on Aug. 25, 2009

  • Either go to a car dealer and ask them or go on line and look at the BLUE BOOK. it will tell you how much it is worth.
    louise2

    Answer by louise2 at 2:00 PM on Aug. 25, 2009

  • YOU tell the bankruptcy people what you want to put in your bankruptcy. If you don't want to include any cars then you don't have to. At least that is how Colorado works.
    jenree33

    Answer by jenree33 at 2:00 PM on Aug. 25, 2009

  • BTW-if you do include your vehicles, it's the taxable value-found on your car registration-minus a % of depreciation.
    jenree33

    Answer by jenree33 at 2:03 PM on Aug. 25, 2009

  • go to nada.com to get the value of your cars. Not sure how they determine if they will take them or not... Good luck
    Anonymous

    Answer by Anonymous at 2:05 PM on Aug. 25, 2009

  • Banks go by NADA value whereas most car lots go by KBB (Kelly Blue Book). There is a difference between the two. From what I have seen NADA is not as current as KBB.
    You can keep your cars but you need to work something out with the finance company and make sure that your Lawyer knows.
    Anonymous

    Answer by Anonymous at 3:32 PM on Aug. 25, 2009

  • *******additional question from poster******

    Does anyone kow if they go by trade in value or private sale value?

    Thanks!!!
    Anonymous

    Answer by Anonymous at 3:42 PM on Aug. 25, 2009

  • I don't understand how two PP can say you don't have to list them. You HAVE to list ALL assets and ALL debts....a family that has two working cars may have to give ONE up, but they would not be forced to give up two vehicles.....if both parents work and each requires a car for transportation and it's agreed on that you would continue to make payments on the vehicles rather than turn them in you may be allowed to keep them
    Mom2Jack04

    Answer by Mom2Jack04 at 5:51 PM on Aug. 25, 2009