What will happen to my 20 foot trailer if I filed chapter 7? 15 Answers as of October 14, 2013

I recently bought a trailer to transport items at cost to others to get money from transport, horses, motorcycles for snow birds etc. I bought it on credit and have owned it only for a few months, things got slow and hence the chapter 7.

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Law Office of Thomas C. Phipps | Thomas C Phipps
You can exempt tools of your trade up to $4,000 in value.
Answer Applies to: Missouri
Replied: 10/14/2013
Fears Nachawati | Sean T. Flynn
This question requires more information to answer, however if you are filing chapter 7 you will need to make sure that the property is exempt. The exemption will depend on if this is used for a business or for personal transportation, if you have equity in the trailer or are making payments, and if you have other assets that you may need to protect. Also, you will need to insure that you can keep up with any payments that you may have.
Answer Applies to: Texas
Replied: 9/11/2013
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You have to reaffirm the debt and keep making the payments if you want to keep it.
Answer Applies to: California
Replied: 9/9/2013
Goldsmith & Guymon
Goldsmith & Guymon | Marjorie Guymon
If the persons who lent you the money to purchase the trailer hold a lien against it then they are protected. You must continue to make the payment to them or they have the right to seize the trailer as payment. The balance would be discharged. If they do not hold a lien then your only option is to claim the trailer exempt under the tools of the trade exemption, which has a $10,000 limit.
Answer Applies to: Nevada
Replied: 9/9/2013
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If it is not exempt, then the trustee can seize it.
Answer Applies to: New York
Replied: 9/9/2013
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    The answer depends. Do you have equity in the trailer? Often, when items are brought on credit there is very little equity, if any, at the beginning of the loan. If so, can it fit into one of the California exemptions: vehicle, wildcard, tools of trade? The last one may be applicable if the item is used as a tool in business. You say you are using the trailer to transport items for others and earning money for doing so.
    Answer Applies to: California
    Replied: 9/9/2013
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    If there is lien on trailer. Then you need to continue to pay. If not then you need to figure out how much the trailer is worth.
    Answer Applies to: Florida
    Replied: 9/9/2013
    The Law Offices of Deborah Ann Stencel | Deborah A. Stencel
    The answer depends on several factors, including: titled owner's, date of purchase, value, liens, and the exemptions available to you.
    Answer Applies to: Wisconsin
    Replied: 9/9/2013
    Ryan Legal Services, Inc.
    Ryan Legal Services, Inc. | Kevin Ryan
    You should be able to claim it fully or partially exempt under a Tools of Trade Exemption.
    Answer Applies to: Ohio
    Replied: 9/9/2013
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    What will happen to your trailer is sort of up to you. If you continue to make the payments to the lender, chances are you will be able to keep it, if you can't make the payments, expect the lender to ask the court to allow them to repo it.
    Answer Applies to: Nevada
    Replied: 9/9/2013
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    You will have to list it as an asset. Use the value that you recently purchased it for as the value that it is worth minus whatever depreciation there is. And attach a security lien for how much you owe on it which will limit the equity. Use state or federal exemptions to cover the rest of the equity if possible. If you're trying to do this without an attorney you are very foolish. Do not file bankruptcy or manage bankruptcy without an experienced bankruptcy attorney.
    Answer Applies to: Connecticut
    Replied: 9/9/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    You should consult with an attorney. The answer will depend upon whether there is equity in the trailer, whether you can maintain the loan payments, ad what your allowed exemptions are in the jurisdiction in which you live.
    Answer Applies to: Colorado
    Replied: 9/9/2013
    Armstrong Kellett Bartholow P.C.
    Armstrong Kellett Bartholow P.C. | Gary Armstrong
    You should talk with your attorney about whether you can exempt your trailer. It may well be exempt as a tool of the trade. If so, you will be able to keep it.
    Answer Applies to: Texas
    Replied: 9/9/2013
    The Law Offices of Kristy Qiu
    The Law Offices of Kristy Qiu | Mengjun Qiu
    If you took out a loan, and the outstanding balance of the loan is more than the current market value of the trailer, then you won't lose the trailer. If you bought it with credit card, however, it will be considered paid in full and you may lose it or have to pay to redeem the trailer if its value exceeds your allowed exemptions.
    Answer Applies to: Florida
    Replied: 9/9/2013
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    Since you still owe money on it, you should be able to exempt whatever equity there may be and you will not lose it to the trustee/creditors.
    Answer Applies to: New York
    Replied: 9/9/2013
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