It's time for a summary and refresher on dealing with car loans in bankruptcy. Somehow, my staff hit a wall this week on what information we needed about cars and car loans. Then, we stumbled on what to do with that information. So, here's my roadmap to cars in bankruptcy. Fasten your seat belt: here we go. Car value A reliable value for the car is essential in any form of bankruptcy. It drives exemption planning, redemption analysis, and treatment of any loan secured by the car. If you're not getting a live appraisal of the vehicle, you need to get information on make model accessory package mileage mechanical issues body damage All of those questions come up on the online Kelly Blue Book tool. And the resulting value appears on Schedule A/B. Means test Calculating current monthly income (CMI) for means test purposes requires a different set of information about each car with a loan. That's because payments on debt secured by a car are … [Continue reading...]
