Auto Loan Not In My Name

[bbowersatl]

I'm working through all the forms for filing bankruptcy (Ch. 7), and have a question..

I have a truck that is registered in my name. The loan is in my parent's name, but I make and mail the payments.

We are already surrendering one vehicle (my wife's car, the loan has both my name and my wifes name on it). And we want to keep the truck. It has loads of miles and damage, and was valued so it would not present a problem as far as the exemption.

I'm just not sure if I need to note the loan at all or just show it as my personal property and claim the exemption.


Thanks!

[justbroke]

Slightly complex, but not insurmountable.

First, is the truck titled in your name? Does the have more than 72,000 miles or is 6 years or older?

The only problems I'm seeing are if the truck is not actually titled in your name.

[bbowersatl]

I believe the bank (who financed the auto loan) holds the title with my parents name on it.

A Bill of Sale was created for me to get tags and register the vehicle. It's been registered in my name (with the State) and I've paid for it the past 4 years.

It has 150k miles on it, and is 7 years old.

[justbroke]

Sounds complex. Even though you have a bill of sale, do you actually hold clear title? Seems murky to me.

I would suspect that you could claim it, but may be limited to how much you'll get for an allowance. Some Districts only allow $200/month for a vehicle with no loan (lien) that has at least 72,000 miles or 6 years or older. I think you may have title issues.

[whipster1]

You would put your parents as the creditors I think since they get the payments. The bank wouldn't even need to be given noticed since they are not your creditor.

Good luck!

[justbroke]

You would put your parents as the creditors I think since they get the payments. The bank wouldn't even need to be given noticed since they are not your creditor.

I was being purposefully vague on the title issues so as not to get too complex.

The problem here is, that if the parents are creditors and they never perfected a lien (recorded a lien on a newly issued title), then they are unsecured creditors. They would get nothing and have no security interest in the vehicle. That means that the vehicle is unencumbered and is owned by bbowersatl outright.

That's the issue I see around the title. If its actual value is beyond any exemptions, the debtor is exposed.

[bbowersatl]

I was being purposefully vague on the title issues so as not to get too complex.

The problem here is, that if the parents are creditors and they never perfected a lien (recorded a lien on a newly issued title), then they are unsecured creditors. They would get nothing and have no security interest in the vehicle. That means that the vehicle is unencumbered and is owned by bbowersatl outright.

That's the issue I see around the title. If its actual value is beyond any exemptions, the debtor is exposed.

With the amount of miles and cosmetic damage it was valued around $3000 by CarMax. I believe the exemption was $3500, so I should be okay?

[justbroke]

With the amount of miles and cosmetic damage it was valued around $3000 by CarMax. I believe the exemption was $3500, so I should be okay?

Excellent. If the exemption covers the value... excellent. I would, however, find out how yoru local District values vehicles. Some of them use NADA, Kelly, Edmuns or other sources for valuation.

You may need to defend the valuation. Did CarMax provide you with some comprehensive valuation on paper?

[bbowersatl]

Yes, they did give me a summary on paper stating the miles, etc, and how they calculated the value. I've also gone to NADA and ran the numbers, and it worked out to about the same.

Now I'm confused though -

"The problem here is, that if the parents are creditors and they never perfected a lien (recorded a lien on a newly issued title), then they are unsecured creditors. They would get nothing and have no security interest in the vehicle. That means that the vehicle is unencumbered and is owned by bbowersatl outright."

So... do I list my parents as the creditors? or skip that entirely?

[justbroke]

So... do I list my parents as the creditors? or skip that entirely?

If you owe them money, then they are creditors.

[pookieny]

I registered my neice's car under my name and the loan is under her name.

Lawyer said the loan is not in my name so it's not in the bankruptcy.

[bbowersatl]

I registered my neice's car under my name and the loan is under her name.

Lawyer said the loan is not in my name so it's not in the bankruptcy.

The loan is not in the bankruptcy, but the car is as personal property, correct?

[Chowder]

If the vehicle is titled to your parents, with the lender as lien holder. I don't know if the it should be listed. It's technically your parents car.

As far as listing them as a debt. I'd let your Attorney help you with that decision. Ours recommended to leave family loans out of it.

[pookieny]

The loan is not in the bankruptcy, but the car is as personal property, correct?

No, not my property. Not included in my bankruptcty.