Gifting assets?

[BKland]

Hi
What if you "gifted" an asset to a relative, like a car that is new and is owned outright? If you write it up and notarize it in NY state would that be legal?
I have an appointment with the attorney on the 17th and will ask at that time, but the curiousity is killing me.
Thanks

[lrprn]

[Bkland, I moved your question off the sticky so you'll get more quality answers this way. -lrprn]

What if you "gifted" an asset to a relative, like a car that is new and is owned outright? If you write it up and notarize it in NY state would that be legal?

Is it legal to transfer the ownership to your relative? Yes. But is it a good idea to do this before you file bankruptcy? Absolutely NOT.

When did you make this "gift"? If it's within 1-2 years of filing, what you did is hide an asset - even worse, you transferred the car to an insider family member. This qualifies as bankruptcy fraud. The trustee can ask the relative to surrender it to sell for money that will go to your creditors plus you could be in a world of trouble.

I have an appointment with the attorney on the 17th and will ask at that time, but the curiousity is killing me.

Depending on how long ago this transfer took place, you may be ok. Be sure to disclose this to the lawyer and find out where he/she thinks you stand if you do file.

Also it's a good idea to meet with at least 2-3 more bankruptcy lawyers before deciding on one. You'll be surprised at how much you'll learn about your current financial situation and whether filing is the best thing to do in your current financial situation.

Keep asking questions - we'll help you sort things out as best we can so you'll be ready to meet with the lawyers. Keep us posted about what you find out, ok?

[JRScott]

As lrprn says don't do this. I hope you are just asking if you did it.

[TEW]

BKland
I hope you keep us posted on this. I hope you don't get a lawyer that try's to creative with this.

[AngelinaCatHub]

BKland; Speaking from experience, I paid my god-daughter off in my bk. She loaned us money to live on, and we sold a piece of land and paid her. Now I am paying it to my estate again before they close my bk. I have agreed to come up with 5K for insider payment. Mine was obviously explainable and I did not get into real trouble as they could has dismissed me and sanctioned me. They allowed a compromise. Your idea looks too phony and is not original and will be dis allowed for sure. ‘Hub

[Overmylimit]

My inlaws bought 2 of my daughters new cars in 2006 to use for college. They paid cash for both, however they put my Father inlaws and my name on the titles. His because he bought the cars and mine so I could cover their insurance for awhile. Will this show as an asset even though I had nothing to do with the purchase?

[BKland]

Thanks for the posts. I didn't do it , but was just curious if that was a good idea. I will probably end up with a Chapter 13 (along with hubby) because we want to keep the car and the house, but I was just checking.
This is a great message board - so many of us who are in the same boat!

[AngelinaCatHub]

My inlaws bought 2 of my daughters new cars in 2006 to use for college. They paid cash for both, however they put my Father inlaws and my name on the titles. His because he bought the cars and mine so I could cover their insurance for awhile. Will this show as an asset even though I had nothing to do with the purchase?

[Overmylimit]

My Father In Laws name and mine were on the titles. I didn't even want my name on them but the dealer asked who was going to be insuring them and I said me so thats how I got on the paperwork. I believe it was an or because he turned the title over to my oldest without me so I guess he could do the same with the other.