Car Bought by someone else?

[sweetchks14]

I was wondering if it is legal for someone to buy a car for me before I file ch 7? so that I can turn my car in an not be without a car?

[AngelinaCatHub]

It depends upon your honesty and whom gave you this gift. If let's say Dad gave you a car, it best be worth less than 1K or it could be non-exempt. It could also be deemed income. You would have to give more info on who and their intent. If you are covering up a loan, and will pay this gifter back, this is fraud. The best bet with bk Court and associates is total honesty. More info please. 'Hub

[sweetchks14]

It depends upon your honesty and whom gave you this gift. If let's say Dad gave you a car, it best be worth less than 1K or it could be non-exempt. It could also be deemed income. You would have to give more info on who and their intent. If you are covering up a loan, and will pay this gifter back, this is fraud. The best bet with bk Court and associates is total honesty. More info please. 'Hub

My boyfriend is willing to buy me a car an we found a good one at carmax for 9985. He has the cash and I will be paying him back. So I could own the car outright before I file.

[justbroke]

So I could own the car outright before I file.

That's not a good thing! If the car is titled in your name, and you have no exemptions to cover it (unlikely unless you're in California, using System II and have no other need for exemptions), that car could be taken and sold by the Trustee.

What is your true financial condition? You can afford to pay back your BF for a $10K car, but can't pay your creditors? (By the way, what I write is exactly what the U.S. Trustee will be thinking.)

[sweetchks14]

That's not a good thing! If the car is titled in your name, and you have no exemptions to cover it (unlikely unless you're in California, using System II and have no other need for exemptions), that car could be taken and sold by the Trustee.

What is your true financial condition? You can afford to pay back your BF for a $10K car, but can't pay your creditors? (By the way, what I write is exactly what the U.S. Trustee will be thinking.)

Yes I can afford to pay back a 10k car if I dont have to pay anything else. And the reason I dont want to keep my current car is because i owe 18k and its worth 9k. So I wanted to get out from under it. I just want to get out of bk with a car and no car loan

[StartingOver08]

Yes I can afford to pay back a 10k car if I dont have to pay anything else. And the reason I dont want to keep my current car is because i owe 18k and its worth 9k. So I wanted to get out from under it. I just want to get out of bk with a car and no car loan

The way to accomplish this is to surrender your current car that is upside down IN the BK. Just mark the petition that your intention is to surrender.

Your bf can buy you another vehicle after your discharge. IF you try it before you file, then the Trustee will take your free and clear car to sell and pay off creditors. The fact that you will be paying your bf monthly for the car will not help you because you have the car title and there is no lien on the car! You will then have real issues with the Trustee.

[justbroke]

StartingOver... I was thinking that if the BF records a lien and physically holds the title as the lienholder (not named on the title, just the lienholder)...

Yes I can afford to pay back a 10k car if I dont have to pay anything else. And the reason I dont want to keep my current car is because i owe 18k and its worth 9k. So I wanted to get out from under it. I just want to get out of bk with a car and no car loan

However, these are questions for an attorney who is doing bankruptcy pre-planning and asset protection. Please review this with competent legal authority before trying it.

The fact that you can pay him, is what would disturb the U.S. Trustee.

[StartingOver08]

JB, I see your point about the lien, but the Trustee will be very, very interested in a lien put on an asset just before filing by the boyfriend of the debtor. Even if the lien is properly recorded, it is possible the Trustee will try to avoid the lien to get the asset. The OP was not even talking about a lien.

Your advice is exactly correct - talk to a very knowledgable BK attorney to have him guide you through this OP and don't do anything without talking to him first.

[Never_Again]

The simplest way to do this is for your boyfriend to buy himself another vehicle. If he lets you drive it, that is OK, but the title is in his name, and his vehicle.

After your discharge, he is free to sell it, and whoever wants to can buy it.

Then, legally, you don't own it at the time of filing.

[Rahaton]

One other thing to keep in mind is that having a car loan going into your chapter 7 is a good thing in general. The court sees that as a valid expense and that $470ish allowance can make the difference between a 7 and being forced into a 13. Talk to a lawyer, and remember you can always let it go afterwords.