buying a used car after filing?

[desperation]

My father inlaw wants to sell me his buick for $1200. He will let me make payments for $100 a month. It's a good deal (I think) as he has kept up with it maintenance wise, and the car that I have now is dying a slow death. However,
I have my motorcyle which I intend to re-affirm as my secondary back up transportation, but it you have ever drove thru DT Atlanta it's scary even in a car!

He's (father inlaw) old school about BK, and would probably freak out if I explained to him that the car can't be in my name. He's already somewhat suspicious that I am asking for the car to be in my DW name. He doesn't even know about her BK two years ago. Yes....he's that scary.

I filed for BK on 5/15. Just curious if trustee would have and objection on this, or what?

As always thanks for the advice!

[SinkingFast]

Your safest bet would be to wait until Discharge. But when you need a car, you need a car.

When is your 341 scheduled?? Can you possibly wait until after your 341 Meeting to take Title to the car??

[desperation]

BK 341 is scheduled for 6/19/07. Last date for creditor objections is August. ..I can probably make my old wheels scoot till then.but car is almost 10 years old.
I may make it & keep going thru til 341 meeting and then some, but just not sure. I really need to get my FIlaW's car...It will buy me some time as I cannot afford new car or heck even used car. I'm not too shabby with car maintentance being the DIY type, but I getting beyond my knowledge in keeping it going.(that being my current wheels)

I may make it after the 341 date....just not sure exactly how this works?

[CindyLou]

The car can be in your name. The way it should work is that he should file a lien on the car for the amount you owe him with a promissary note with the terms of repayment. That way its on the up and up and he doesn't have to know about the BK....but in this case you will probably have to pay taxes when you transfer title. If you wait until after 341 you can have him "donate" the car to you and there will not be taxes. 6/16 is only a few weeks away. Can you get the car now and drag your feet on the paperwork??? When it comes right down to it, I don't think they would ask or even know about the car at the 341.......plus, what are the exemptions in your state, it may be covered anyway.

[desperation]

Thanks Cindy, I believe the allowed exemptions are $3500. Im in Georgia, but I think some things have changed since first of April?

The car I'm currently driving might get me $1500, but I think probably more in the range of $1000. Darned thing needs about $3000 worth of repairs that I can't do myself and will never be able to afford. Maybe I should just give it up to the trustee?

I like the ideal of FIL "donating" the car. I'm pretty sure he would enjoy the tax write off if I know him!

Georgia has some pretty heavy duty things with title transfers tho.....fees of $100/ or imprisonment (if I remember correctly) if title is not registered within 30 days. Not to mention you have to insure the car upon possesion? At least as far as I understand GA law. It's all way too confusing for me. How I wish that they would write law in plain english!

I am going to try and stall with dear old FIL. Hopefully my old wheels will keep running until after the 341. .....

I'm keeping my fingers and toes crossed....

[SinkingFast]

If you currently have insurance on your old beater, your coverage should extend to the "new" car when you get FIL's. We've lived in several different States and it's customary for insurance companies to allow you 30 days to notify them of a change in ride.

If you have 30 days to Title the vehicle,.......... If you took FIL's car tomorrow, you're looking at having until June 23 to Title it over into your name. So you'd be fine there too.

That would get you driving FIL's car now, when you need it, without being "official" until after your 341.

Just say you paid $1 and other considerations for the car. Or have FIL say you paid $100 for the car. FIL won't have to claim income from the Sale. You won't have to pay taxes on the FMV.

Unless you're a Charitable Organization, I don't think FIL will be able to write off a "donation" to you.

[CindyLou]

"Donation" is the legal term for "giving" a family member real property such as a car. It means that there was no money exchanged thus no taxes for the buyer. It does not affect the seller one way or another and does not qualify the seller for any type of tax deduction. Its not the same as a donation to a charity. Check with your insurance company. With mine you have 30 days if you trade the vehicle, but only 10 days if you overlap with two vehicles at the same time.

[desperation]

But wouldn't that be considered "insider" Or, is that just pre file?

[CindyLou]

Well, being that someone is giving you something that is exempt anyways...I wouldn't think it would matter that much. The insider thing is property to you gave away or money you paid out to someone else. The concern is that you would give away property in order to hide. This is not the case. If in doubt just wait, but I really don't think anyone will be any the wiser. What does everyone else think?

CORRECTION: I just realized you are actually going to buy the car for a sum of money.... Can you just pay him after the 341???

[desperation]

Thanks Cindy and Sinkingfast,
Cindy/SinkingFast....In answer to your last questions ...probably , hopefully I can wait until 341 is over.

Although he (FIL) is somewhat paranoid about why I can't title the car in my name right now.... I'm a little apprehensive that he may decide to sell the car to someone else instead.

Other half is saving to help me out. I am hoping we can stall with buying it until after the 341, but curious....how does that affect a discharge for chap 7?

Dear FIL will let me make payments to him at no interest, and I can't ask for a better deal than that right now.

Thanks as always for the kind advice and wisdom!

[follie]

I hope you can wait, too. My trustee specifically asked if I had a car, and grilled the family ahead of me about their cars. It may only be my trustee, but I would hate for you to be in that position!

[desperation]

Thanks follie,

If the trustee ask about my current car I will tell him the absolute truth.

Clutch is going out, brakes are going out, tires are shot, rear end is about to blow ball bearings all over the highway, starter is just about shot, spark plugs/belts are toast and it needs a tune up in the worse kind of way, and I'm broke as I don't know what, and can't figure what to fix first.

I'm actually amazed it's still running, although not safe. (this does concern me a great deal for the folks who may be behind me in my commute to work every day)

I really don't think he/she will want my old hunk of junk. I think for the time being I will just do the long route on my motorcyle, and hopefully can stall with FIL for the time being.

[NYCountry]

If FIL is the paranoid type person I don't know if I would want to deal with him. Family deals can get touchy.

[desperation]

Update

My attorney says I can take the car now before 341 as long as I'm not financing it.

Dear FIL does not want interest payments, and he is okay with me putting $200 down, and then just paying him the $1000 over time.

I don't think there will be anything on paper other than my agreement to pay FIL back $1000 for the car, (or DW estate will get dinked for that amount).

I'm still want to be careful tho, and don't want to do anything unwise that could jepordize a Chap 7 discharge.

Thanks in advance for any advice!

[NYCountry]

You have to license and insure it and sign a form for the state taxes, right? I know you do in NY.