BANKRUPTCY AND TRANSPORTATION

txls

Well-Known Member
Jurisdiction
Louisiana
My brother filed bankruptcy and they were going to take all three of his methods of transportation. His regular transportation truck, old truck that barely runs and motorcycle. The old truck is sentimental value, the motorcycle he knew it would have to go, but the question is about the other truck. It hardly has any value because of age, miles and condition. What doesn't seem to square up is that he wouldn't have a way to get to work so he can try to keep up with his obligations. I'm just curious about this because you know "everybody" says they can't take your only method of transportation. He does have a lawyer so I'm sure everything is being done correctly. Again just curious.
 
My brother filed bankruptcy and they were going to take all three of his methods of transportation.

Who are "they"?

The logical answer might be that "they" refers to the trustee. However, it's hard to imagine that a trustee handling an otherwise ordinary Chapter 7 or Chapter 13 case would be interested in any vehicle with fairly little equity. How much is "hardly any value"?

Here's a list of Louisiana bankruptcy exemptions (which also contains a link to the federal exemptions). As you can see, there's no specific exemption for motor vehicles.

Beyond that, all anyone here can do is guess. Of course, your brother should discuss the matter with his attorney.
 
My brother filed bankruptcy and they were going to take all three of his methods of transportation. His regular transportation truck, old truck that barely runs and motorcycle. The old truck is sentimental value, the motorcycle he knew it would have to go, but the question is about the other truck. It hardly has any value because of age, miles and condition. What doesn't seem to square up is that he wouldn't have a way to get to work so he can try to keep up with his obligations. I'm just curious about this because you know "everybody" says they can't take your only method of transportation. He does have a lawyer so I'm sure everything is being done correctly. Again just curious.


If he's filing chapter seven he is able to keep at least one method of transportation, in MOST states.

However, Louisiana is ONE of the so called "opt out" bankruptcy states, meaning a person is not permitted to use the federal bankruptcy exemptions when filing in an "opt out" state.

Louisiana allows bankruptcy filers to exempt property using the Louisiana state exemptions.

LA exemptions aren't generous to say the least.

Gotta love that Napoleonic Code, doncha?


This chart might be helpful:

Bankruptcy in Louisiana - Louisiana exemptions


Bankruptcy Exemptions
 
Thank you armyjudge. That makes sense. His attorney warned him that the lady they are working with is pretty tough. On a good day the truck might bring a couple of hundred at auction, less auction fees. Anyhow, we worked it out where he could keep it for $1000.00.
 
Thank you armyjudge. That makes sense. His attorney warned him that the lady they are working with is pretty tough. On a good day the truck might bring a couple of hundred at auction, less auction fees. Anyhow, we worked it out where he could keep it for $1000.00.


It isn't the trustee, that's tough, it LA laws are so unreasonable in the 21st century.

The federal exemptions seem generous by LA standards. LOL
 
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