Question for all you Legal Begals out there :)

[FishersMike]

Okay here is the deal:

My sister and I purchased a vehicle together in 2007, and purchased a 2007 Jeep Commander. We are both co-buyers. This was for credit purposes, as she had better credit than me. We do not/did not live in the same household. This is my car that I will keep in the Chapter 13.

In 2008 my sister and I purchased another vehicle. It was a 2009 Suzuki. It had a large down-payment (as my mother gave it to her). However, I had to be the co-buyer on this as they would not let her finance another vehicle on her own since she already had a financed vehicle in her name (the Jeep). This has been her car since the beginning and she has made every single payment herself. I have never made one.

Now we can prove who has paid for what vehicles.

Now my attorney said do not worry about it, will not include on the Bankruptcy at all. This is great. Do not want to as my sister is not filing. However, I just want to make sure this would not be fraud thinking I am hiding assets since this car would actually be worth more than than the balance of the loan.

Please advise if I should be okay not listing at all, since it is not my property. Thanks in advance as usual.

[AngelinaCatHub]

You in essence are a cosigner. You may or may not have to list it but it can be explained as you did here. As long as she is paying it, this is not an issue. You are paying your lawyer good money for advice and I agree with him. Don't worry about this. Is the current car you both bought current in payment? Reaffirm that and she is then off that hook.

'Hub

[FishersMike]

Well the Jeep (my car) is about 22 days late as I am including in my Chapter 13. The Suzuki (her car) is not late. But what I was told was just to not include it in bankruptcy at all (like it did not exist). Not reaffirm, etc. as I did not want her credit to be messed up on that car. Also if we do nothing, then I would at least have one positive trade going on post-bankruptcy?? What are your thoughts?

[Flamingo]

If you discussed this with the attorney handling your bankruptcy and he said it is a non-issue and you are still concerned and have not retained this attorney, go and get another opinion (free consultation) from another attorney in your area/state. If you have retained this attorney and are concerned, question him directly about your concerns to get a better answer.

[FishersMike]

I have retained the attorney - however since I am using a big B/K chain - I have to consider some of their info with a grain of salt. I sometimes want to validate things to protect my butt...... if it sounds like what they say is kosher I will not question them further.

[987654]

I have to think, personally, that it is better to disclose and explain than to hide and explain twice as hard later. Your name is on the loan, which means it's your debt regardless of whether your sister is the primary owner and pays the bills. To paraphrase the NOLO book "you have to list ALL your creditors, especially the ones you don't want to (family/friends/etc.)

At a minimum, I would clarify it again with your attorney and ask point blank why it is not a good idea not to list it. Also consider that things may not always be rosey for your sister: she has been making the payments and god willing will continue to do so, but if the unforseen happens and she *can't*, you would still be on the hook for the loan. ASk yourself, and your lawyer, how that would impact your BK, and how including it now will impact your sister. It's best to go in informed

[FishersMike]

I would not be worried she would default on the payments. There is like $5000 owed and car is probably worth $20000.00 - my mother would pay off the balance. In fact she was thinking about doing so because I was filing bankruptcy. My attorney said definitely not do that as it would at that point seem to be dispersing property or something similar. I will ask again when I go in to sign the final papers.

[newbie2]

I would not be worried she would default on the payments. There is like $5000 owed and car is probably worth $20000.00 - my mother would pay off the balance. In fact she was thinking about doing so because I was filing bankruptcy. My attorney said definitely not do that as it would at that point seem to be dispersing property or something similar. I will ask again when I go in to sign the final papers.

Is your name on the vehicle? If so, you better make sure you can exempt that equity.

[boochase]

Keep in mind that your credit report is pulled in every case. So, be sure to report every debt that shows up in your credit report and explain it to your lawyer so he/she can handle the situation. This is not an adversarial process if you choose the right lawyer.

[FishersMike]

I went to my signing appointment today. The attorney is surrendering MY interest in the vehicle. My sister will then be able to continue to make the car payments on the Suzuki. Since I am surrendering my interest, I do not have to worry about any of the equity/exemptions. I am assuming that Wells Fargo will just remove my name from the loan and make her the sole buyer/owner?

[df04527]

wow - just my opinion - this doesn't sound right to me.

[ShooFly]

I have the same situation with my husband. 2 cars, both names, but only I am filing CH13, not him. I am leavving BOTH cars outside of the plan to protect his credit. He is NOT filing bk with me, just like your sister is not filling. You will need to leave BOTH cars outside of the plan to protect HER credit. You list them on your paperwork, but they are paid outside of yur plan, and, therefore not protected. You would need to make the car payments as is... a small price to protect your sisters credit. Of course, talk to your lawyer, that's the standard response, but you will affect your sisters credit if you include either car.

[lrprn]

I am assuming that Wells Fargo will just remove my name from the loan and make her the sole buyer/owner?

Since you are surrendering your interest in the vehicle, then yes, your sister will assume full responsibility to pay off the remaining loan value. As long as she continues to make on-time payments, she's fine keeping the car.

[lrprn]

...but you will affect your sisters credit if you include either car.

Since FisherMike's sister did not file bankruptcy, his filing bankruptcy cannot hurt her credit.

Very rarely a co-signer's - let's call her Jane - credit report shows their co-signer's bk filing by mistake, but all it takes is Jane disputing it to remove the incorrect entry immediately from her credit report.

[FishersMike]

Thanks for clarification lrprn