HELP! Asset and vehicle confusion!

[Katrina122604]

I was hoping someone who might have been in a similar situation or has any knowledge of what to do may be able to help us out. We're filing Chapter 7 bankruptcy. My husband has a truck. When he purchased the truck his grandmother was the buyer and my husband was the co-buyer. The registration is in his grandmother's name, but the insurance is in his name. We have not made any payments to his grandmother since February (he would always send payments to his grandmother and she would make the payment). His grandmother has been making the payments since and we will be giving the truck back to her since she has been making the payments (technically it's hers anyway). How do we handle this on the asset part of Schedule B? We're filing ourselves because we can't afford an attorney. I'd appreciate any input, thank you!

[AngelinaCatHub]

Katrina; I would not claim the truck as your property. If you are using or storing it, there is a place to list items that you have but are not yours. I think you must list her as a creditor and BE CAREFUL, as she will be looked at as an insider. What kind of truck? Can grandma use it? Can she sell it? Perhaps you can write a contract with her and pay through. As long as you can explain the connection. It looks shaky as a questionable item. The gold standard is get lawyer advice. ‘Hub

[Help!]

If your husband is on the loan, the truck has to be disclosed on the petition. Is he also on the title?

[Katrina122604]

I'm not sure, I believe the company that financed the vehicle still has the title. The vehicle registration is in her name only.

[Help!]

Ok - some states actually send you the original title with your name and the lienholder even though you have a loan/lease. As long as the value of the car is less than the balance of the loan, there is no equity to exempt. It would still need to be listed as an asset, but with an exemption value of zero.

[Katrina122604]

His grandmother's name and his name is on the title. I believe then they split the value 50/50, if what I researched is correct.

Ok - some states actually send you the original title with your name and the lienholder even though you have a loan/lease. As long as the value of the car is less than the balance of the loan, there is no equity to exempt. It would still need to be listed as an asset, but with an exemption value of zero.