Can anyone give me any advice on what is needed to create a lien with a private party? For instance, If I wanted to borrow money from a private party and wanted to give them an interest in a vehicle as security, are there certain documents we would need to use? I believe it needs to be recorded somehow, correct? Does the timing affect when we could file? I was told by one atty that we could finance a new vehicle right up to the date of filing, so this doesn't seem much different. Is it? Any recommendations appreciated.
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1/15/10 Filed ch7 2/18/10 314 meeting
2/22/10 Report of No Distribution
4/20/10 Discharged 5/20/10 Closed! -
You need to make sure the lien is perfected. If it is not, then the Trustee can take the unencombered vehicle if it is over the exemption amounts. Look at this link: http://www.jsslaw.com/newsletter_details.aspx?id=21
You might want to look under your state for the paperwork for UCC filings. Remember the Trustee normally looks at all of your transactions within the 6 months prior to filing - loans, deposits etc.Filed CH 7 9/30/2008
Discharged Jan 5, 2009! Closed Jan 18, 2009
I am not an attorney. None of my advice is legal advice in any way.. -
starting over is right. Lien perfection needs to be completed or the trustee can view your car as a completely owned outright asset, liquidate that asset, and then treat that brand new lien as a completely unsecured debt, as if it was a CC. I can't imagine your car creditor would be too pleased with that.
Now another situation you have is that sum of money you've just received for doing that Non-Money Security Purchase Agreement. If you have that sum of money at the time of filing, it counts towards your wealth you can exempt. If you spend it before you file, depending on how it was spent, there can be issues that pop up. Did you take all that money and put it towards a specific debt? Did you try to live off of it as long as you could? Did you pay off a debt secured by an asset. Did you pay off a debt that you had with a family member, friend, or another "insider"?
If you're tying to take the debt out in order to have less equity in the car, then that money can be liquidated just the same. Maybe you keep the car, but you still wind up paying.I do not provide legal advice. All I do here is give my two cents as an opinion and at least share some of the facts that I know. Attorneys can provide legal advice, so go ask them or hire one.Comment
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what happens if a lien is not perfected but the trustee decides to abandon the property anyway? when the case closes, is it property of the debtor?filed ch7 May 09
341 june 09
discharged, closed Aug 09
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