Expert: Mark J. Markus- California Bankruptcy Attorney - 3/5/2008

Question
QUESTION: If the bank is giving me the opportunity to reaffirm my car loan but the trustee is still requesting the court to take the vehicle because the car only has about $10,800 and its worth $20,000. Is it possible that they can still take my car? I am in the state of Florida

ANSWER: One thing has nothing to do with the other.  The trustee can sell any non-exempt assets in a Chapter 7 case.  Unless you exempted the equity in your vehicle, the Trustee can sell it.

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QUESTION: Can you please explain if I exempted the equity in my vehicle. And so are you saying even though the bank allows me the opportunity the court can still grant the trustee with my car?

Answer
Again, whether you reaffirm the debt on the vehicle has absolutely nothing to do with the Trustee liquidating the asset for the benefit of your creditors.

I assume you filed a Chapter 7 case.  The trade-off you get in a CHapter 7 case for getting a discharge is that you give up any non-exempt assets that you have.  If you don't understand what an exemption is, please see http://www.bklaw.com/california_bankruptcy/.

I have no idea what Florida's exemptions are or if Florida is even the state governing your exemptions.  But if you did not exempt the equity in your vehicle, as I said before, the Trustee can sell it.  You really need to discuss these issues with your attorney.  If he/she is for some reason unwilling to answer them, you should consult with another attorney in your area immediately.