My Car Can I Keep It?
Generally speaking , if you are maintaining the payments on your car you can keep it, if the car’s value is over the $7900 threshold and you have paid it off you may have to pay your trustee to amount over that threshold.
For example 1:
You own the car and paid it off, nothing owing.
Ford Festiva 2015 and its wholesale value is $9,700 ( wholesale means what you may get at a car auction or a car yard if you were to sell it)
The threshold is $7900, therefore the difference is $1,800, this would be the amount would have to pay the trustee to keep the car, as it is an asset with residual value and equity.
Example 2
You own the car but the loan is higher than the value of the car
In this instance if you had a car loan outstanding amount was $15,000 and the wholesale value of the car was $10,000, if sold would be a loss, therefore you have no equity.
Its not worth it and selling would be a loss to the trustee and they would have no interest in it.
Key Points.
- Keep up with the payments and you won’t lose the car.
- If you have equity in the car, you own it and no loan outstanding you may have to pay to the trustee to keep it, this depends on the wholesale value of the car.