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Lien Avoidance & Other Q.


LekiaHall
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If the one car I own has value of $4650.00 and I owe $4807.00, do I need to list it on Schedule C? There's no equity to claim as exempt, so do I just list this debt on Schedules B & D?

Also, this same car has a second lien with a finance company. I plan to list this finance company on Schedule D, but I'm wondering, how does the lien get stripped? Is it done by my simply filing the Schedules and then filing a Motion to avoid the lien? Based on the info above, does a $1613 debt with this finance company impair the value of my exemption?

Thanks in advance. I'm too broke to get an attorney and the creditors and breathing down my neck.

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The secondary lein is a non-purchase money security interest and you can and should file paperwork to avoid the lien. It DOES impair your exemption.

If you're upside down one the vehicle, then its 100% exempt - but w/o using any of the exemption $$. I don't have the book here with me right now but I can look it up later.

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The secondary lein is a non-purchase money security interest and you can and should file paperwork to avoid the lien. It DOES impair your exemption.

If you're upside down one the vehicle, then its 100% exempt - but w/o using any of the exemption $$. I don't have the book here with me right now but I can look it up later.

Thanks for the clarification, LadynRed. That's what was confusing me...if I'm upside down on the vehicle, and don't have any equity, does the exemption rules apply? Thanks for answering that question for me!

So, just to be clear, on Schedule C, I put:

Descrip of Property Special Law... Value of Exemption... Current Market..

1995 Honda Accord...??...................$0............................$4650

I'm in Maryland; since I'm not claiming an exemption $$$ do I need to reference a law?

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