Post 341 and my mom wants to give us a truck

[aces67]

We had our 341 last Friday and everything went great. Anyway as part of our Ch 7 we surrendered dh's truck b/c we couldn't afford the note anymore. My mom and step dad are getting divorced and when they started settling their property they decided that they want to give dh one of their trucks. It's nothing new or anything it's a 95 model. It's worth $5000 and it's paid for.

For us to get it insured it needs to be in our name but should we wait until our official discharge comes to do this? They called the tax office and all we have to pay is a $15 gift tax on it and then the title fees.

I plan to call my lawyer in a little while and see what he says-If he's even in today.

Thanks!

[CH33 Paralegal]

If your mom can wait until you get your discharge, then you're not in bankruptcy anymore.

Also, though, the 7 is an instant look at what things are right now. So future events are a given.

The 7 process will not last that long, so if you can go 3 or 4 more months until the case is over, that's probably the easiest way to do it. Or your mom could put it in her name and keep it in her name while the BK is active and you guys could just be the drivers of the car. If it was in someone elses' name and the debt is in someone else's name, then it doesn't really need to go on your Bk.

[Trixie007]

Your name doesn't have to be on it to be insured. We "gave" our daughter a car, it's in my name but she has her own insurance policy (she's 18) for the car - my name is not on the policy at all.

[aces67]

That varies by insurance company. My agent says with our company is must be titled to one of us.

[reeltrouble]

I think you can have it titled in your name, or jointly with your mom to get insurance. have your mom place a lien on the truck for the FMV (check kbb.com), just like a bank would do if they were financing it. After the BK is over, if your mom wants to forgive the debt, then so be it

[aces67]

I think you can have it titled in your name, or jointly with your mom to get insurance. have your mom place a lien on the truck for the FMV (check kbb.com), just like a bank would do if they were financing it. After the BK is over, if your mom wants to forgive the debt, then so be it

If I do it this way won't that look like I'm incurring a new debt? I mean shouldn't we wait until after discharge to incur new debts?

[LuciluS]

Do you have another auto that is insured with this company? If so, then you should be able to drive the truck without it being titled in your name.

I don't know about putting your name on the truck. I would be leary since you've converted from a Chapter 13. Just my opinion. Have you asked your Attorney?

Luci

[aces67]

I left my lawyer a message and I'm still waiting to hear back from him. I plan to take him a payment on Monday hopefully he'll be in and I can ask him then.

[LuciluS]

I left my lawyer a message and I'm still waiting to hear back from him. I plan to take him a payment on Monday hopefully he'll be in and I can ask him then.

Wow I know you converted from a 13 to a 7, but I think most Lawyers require full payment before filing.

Hope you are able to at least drive the truck and could be your Lawyer will say 'go for it'. Who knows in this crazy Nation

Luci

[aces67]

My lawyer was mad that we couldn't go through as a 7 to begin with so he said we could pay him out if it went through. He felt like we got a bad deal. We paid him initially for a 7 and then he got paid by the trustee for the additional 13 fees now we owe him $750 for the conversion. It's worth it though!

[reeltrouble]

I'm absolutely no expert or atty, just a suggestion... My parents offered to finance a car for me when we surrendered ours, but my name would have to be on the title for insurance purposes. My lawyer said this was OK, but we needed to ensure the lien was on the car and correct.

My line of thinking is that it is basically the same thing if they give it to you, but "finance" the purchase of it.

I could be way off base, sorry if that is the case

[lrprn]

A gift is a gift. There's no 'loan' involved. If your divorcing parents want to give you a car, it's no different than them giving you a birthday gift - the car is just worth more There's no financial obligation to repay a gift so there's no impact on your bankruptcy state (which was set on Ch 7 filing day anyway).

As far as the insurance goes, Paralegal is right. If you can wait another two months to officially title the car in your names until after your case is discharged and closed, that completely removes any remote possibility of connection to your Ch 7 case.