Bankruptcy Court Rules Vintage Undrivable Car Not Entitled to Vehicle Exemption

Bankruptcy Court Rules Vintage Undrivable Car Not Entitled to Vehicle Exemption

The Debtors filed a chapter 7 bankruptcy and listed a 1937 Ford Tudor as an asset. The vehicle was described as “Bad Transmission — fair condition.” At filing the transmission was inoperable and the seats were removed. As such, the vehicle was not capable of being driven or operated on the roadway. However, the vehicle was registered and insured. After the bankruptcy was filed, the car was repaired and operable. The Debtors claimed the vehicle exempt under the Idaho motor vehicle exemption ($7,000.00) which provides in relevant part “[a]n individual is entitled … to an exemption of one (1) motor vehicle to the extent of a value not exceeding seven thousand dollars ($7,000).” Idaho Code § 11-605(3).

1937 Ford Tudor

The trustee filed an objection to the Debtors’ exemption on the grounds that it did not meet the requirements to be operated on public highways.

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