Reaffirm Car Loan

[Anonymous]

Hello, I live in PA and I forsee a bankruptcy in my near furture I am a coal miner and the mine I work at will be closing. 

I live at home taking caring of my elderly mother that is on dialysis.

I have 2 fairly newer vehicles, I'm prepared to lose the one but I was wondering if I will be able to keep the other one if I continue the payments?

It's a 2008 corvette in which I have a lot of postive equity in. I owe 18K and the car is worth around 28K.

I know from reading not all lenders require to actually sign a reaffirmnation agreement but I would if required to keep from losing the corvette. 

My question is once I get the bankruptcy ball rolling and the trustee reviews my assets and see I have a car with such positive equity will they be able to take the car before I even get a chance to reaffirm it? Am I entitled the option to continue making payments before it's just taken from me?

Thanks ahead of time

Geno

[StartingOver10]

You will need to check the allowed BK exemptions for PA. http://www.legalconsumer.com/bankruptcy/laws/

If you are filing a Ch 7 and can not exempt the entire equity, you may have to pay a negotiated amount of the equity to the trustee. This is something best discussed with a Bk attorney prior to filing.  Do some research here to start http://www.nolo.com/legal-encyclopedia/property-exemptions-chapter-7-bankruptcy.html

Most people that have significant assets file a Ch 13 in order to retain their assets. Something to think about but may be difficult in your specific situation.

[Anonymous]

Just my luck PA has zip $0 exemption for vehicles. But from what I read I can fall back on the federal exemption amount of $3,675

So is that to say I am not entitled to reaffirm because I have positive equity in the corvette?

Who is reaffirming a car loan designed for then?

So I would have to pay out 10k ( minus the federal exemption I assume) cash in my case just to be allowed to continue making payments on my corvette?

Being that far ahead on my loan is actually hurting me now because of all the postive equity. It sounds like I'd have been better of to be upside down or breaking even on my corvette loan.

[Anonymous]

I had another question. I see there is a homestead exemption. The Unused portion of homestead, up to $11,500 may be used for other property

Do I have to own a home to be elgible for this homestead discount or does anyone get it that takes the federal  bankruptcy exemptions?

[ezdriver]

Please consult with a bankruptcy attorney.