Bankruptcy ? In Florida

[broke727]

My wife will be filing for bankruptcy soon in Florida . All her debt are under her name . With her filing will it affect me ? She also have a car under her name to . She unable to make the payment so her sister took over the payment . Now that the car is 1 payment from being payoff . My wife will be sign the title to her sister. With my wife filing for bankruptcy will she loose the car due to filing bankruptcy? Should my wife wait till she sign the title to her sister . Then file for bankruptcy?

Thanks

[justbroke]

First, let me answer the second part. Your wife should absolutely NOT TRANSFER ANY PROPERTY shortly before filing. Especially to what is known as an "insider" such as a family member. The "exemption" allowances for a vehicle, in Florida, is very low; this exemption is $1,000 per debtor. If your spouse is not claiming a homestead exemption (on a house), then an additional $4,000 is available as a wildcard. However, she only has another $1,000 for any other property so it could be tight. How much is the car worth?

Your wife's bankruptcy should not affect you so long as you don't have any joint debt (in both names).

That car is going to be problematic and you should consult, rather she should consult, with several bankruptcy attorneys to determine if she has enough exemptions to cover the vehicle and her other personal property.

[broke727]

According to KKB the car is value at $8000 . The house is under my name and we don't have any joint account beside checking account.

[justbroke]

According to KKB the car is value at $8000 . The house is under my name and we don't have any joint account beside checking account.

The car will be difficult to protect with exemptions in Florida. You both should consult a Florida bankruptcy attorney to ask about options for the vehicle. I'm not trying to cause you any more stress. A $8,000 car is simply difficult to protect in a Florida Chapter 7 bankruptcy. There are some methods to perhaps address some of this issue and maybe a bankruptcy attorney may be able to help you find a way to reduce the "equity" in the vehicle.

One thing your wife should absolutely NOT DO is sign that title over to anyone. She needs to consult with a bankruptcy attorney. (Signing over the title before filing would be considered a "fraudulent" transfer. The word "fraudulent" is a term used loosely in bankruptcy. It does not mean 'criminal' fraud. it just means that the transfer violates the bankruptcy provisions and can be undone by the Bankruptcy Trustee.)