Filing Chp 7 and have a question Thank you.

[GrlinFL]

My husband lost his job and so did I. Our house went into foreclosure and we are now living with my Mother and Father along with my 3 kids.

My question is that my father bought 2 cars for my husband and I cash. Both cars probably total 20k. And he already has 2 other cars under his name. The insurance is under my name and my husbands name on the cars he bought for us.

My father mentioned today he is buying a sports car for himself so now he will have 5 cars registered under his name at the address we all live at. Is the Trustee going to ask why my father has 5 cars under his name?

Nothing was transferred from our name to my father. Our cars got repoed. But because the insurance on 2 of the cars is under our names is the Trustee going to say the cars are ours and try to have my father pay the BK court? This will cause major problems in my family. Should I take the insurance off our names or am I just stressing for nothing? My father has alot of money and pays cash for all the cars. He will have a heart attack over this. Do the trustee even care how many cars my father has? Do the trustee even check the insurance company to see what cars are insured under whom? I am really worried about this and crying over it. Please help me.

I forgot to mention that my father is allowing my husband drive the sports car but his name has to be insured on it also. My father is a kind man but I don't want this to backfire. I feel ashamed and embarrased telling you I had to move back home and I have kids. Sorry.
Thank you all.
Natalie.

[fooked]

Natalie, first of all, don't worry about the embarrassment... we're all here, right?

You can prove the cars aren't yours, as you're only paying insurance on them, and if they research the purchase of the vehicle, none of that money was yours, if I'm reading your post correctly...

Are you paying rent to your father?

[tinfoilhat]

Is the Trustee going to ask why my father has 5 cars under his name?

Nothing was transferred from our name to my father..

My opinion.
Don't say anything unless asked, the answers should be short and to the point.

Do you own or lease a vehicle? no.
If they ask how you get the kids around, you drive your fathers vehicle.

Your father has nothing to do with this bankruptcy at all. (going off what you said)
It's none of the trustees concern if your father owns a car lot and said heres a new corvette, it's all yours, but it's not going in your name until after your bk. Your trustee doesn't even need to be made aware of that if it were to happen. Just what do you drive? my fathers car. What kind of car is it? a 2010 corvette. If it's not and never was titled in your name, the trustee can't do anything, in fact I doubt that question about what make/model the vehicle is will even be asked.

I moved back in with my father also, it made my paperwork real easy. For personal property, I didn't have to list lamps and end tables and books and their prices. My attorney filled out all my paperwork and it was stated that I live in my fathers furnished home.
I was never asked about personal property, who owns the bed I sleep in, the tv I watch etc.

[backtoschool]

If your name is not on the title and you are not paying the car payment directly, then the car is not yours in regards to bankruptcy. Lot's of people have family help them during hard times. The trustee is only interested in assets that are in your name.

[GrlinFL]

First I would like to say thanks to the 3 of you that responded. There is no car payments since he paid cash for all his cars. I do not pay my father rent since he is well off.

One of the cars however, my father is giving to us to keep. The other he will let us use it for however long we want. The one he is giving to us is an 03 Alero with 100k miles. I am thinking of tranferring the title to my husbands name. Is this going to open a can of worms about his other cars? I am thinking of doing this so they don't question how we get around and look deeper into my name being on the SUV and husbands on the sports car. Or should I leave things the way they are? Out of the 4 cars insured now (not including the soon to be sports car he is buying), one car is junk and doesn't work. Other car my father uses (04 Acura with about 30k miles). The other 2 are the ones he bought for us (08 Dodge Durango he paid 15k and 03 Alero with 100k miles he paid 4k). The insurance on the Durango and Alero is just under our names (my father isn't on the insurance) since he bought it for us. He has titles for all cars and all under his name and none were ever mine or my husbands.

We are planning on moving out to a cheap apartment because my husband has a part time job that will pay rent. My father will pay all other bills. It is different living with family than on your own. I just don't want any issues with my fathers cars. Should I tranfer the Alero to my husbands name just so the trustee doesn't question how we get around? The SUV and the sports cars will still have insurance under our names also. Please give me advise because I don't want to cause family problems.

Thank you.
Natalie

[backtoschool]

First I would like to say thanks to the 3 of you that responded. There is no car payments since he paid cash for all his cars. I do not pay my father rent since he is well off.

One of the cars however, my father is giving to us to keep. The other he will let us use it for however long we want. The one he is giving to us is an 03 Alero with 100k miles. I am thinking of tranferring the title to my husbands name. Is this going to open a can of worms about his other cars? I am thinking of doing this so they don't question how we get around and look deeper into my name being on the SUV and husbands on the sports car. Or should I leave things the way they are? Out of the 4 cars insured now (not including the soon to be sports car he is buying), one car is junk and doesn't work. Other car my father uses (04 Acura with about 30k miles). The other 2 are the ones he bought for us (08 Dodge Durango he paid 15k and 03 Alero with 100k miles he paid 4k). The insurance on the Durango and Alero is just under our names (my father isn't on the insurance) since he bought it for us. He has titles for all cars and all under his name and none were ever mine or my husbands.

We are planning on moving out to a cheap apartment because my husband has a part time job that will pay rent. My father will pay all other bills. It is different living with family than on your own. I just don't want any issues with my fathers cars. Should I tranfer the Alero to my husbands name just so the trustee doesn't question how we get around? The SUV and the sports cars will still have insurance under our names also. Please give me advise because I don't want to cause family problems.

Thank you.
Natalie

Don't transfer any property into your or your husband's name until after your discharge. Transfer of property is looked at for up to 2 years before you file, and if it falls within those two years it will need to be covered in your exemptions, if your name is on the title. The trustee can't do anything about the fact that your father owns five cars. Your father is not filing for bankruptcy. As long as your name is not on the title, that asset is not part of your bankruptcy estate. Transferring the car into your name now would be a huge red flag for the trustee and would also use up your exemptions that are needed for other things.

[bankruptsee]

At our 341, the trustee was only concerned with CASH help from family members

[tinfoilhat]

I'll say it again. Your attorney should ask , and your trustee might ask if you own, lease, finance a vehicle. If your question is no I use my fathers vehicle, you move on to the next question. If you say yes you get asked for paperwork, usually registration and insurance, and thats going to lead to how long you owned it, how much did you pay for it, where did you get the money for it (gifts are considered assets too so don't say dad gave it to you).

What sounds easier to you?
Driving dads car, or aquiring a vehicle and providing paperwork about it and risk losing it if it's put in your name?

The trustee has enough right to take your dads car as he has to pick a random neighbor on your street and take their car. Unless of course in the rare occasion you just "gave" your dad or your neighbor your car to "hold" until the bk is over.

[justplaintired]

I'll say it again. Your attorney should ask , and your trustee might ask if you own, lease, finance a vehicle. If your question is no I use my fathers vehicle, you move on to the next question. If you say yes you get asked for paperwork, usually registration and insurance, and thats going to lead to how long you owned it, how much did you pay for it, where did you get the money for it (gifts are considered assets too so don't say dad gave it to you).

What sounds easier to you?
Driving dads car, or aquiring a vehicle and providing paperwork about it and risk losing it if it's put in your name?

The trustee has enough right to take your dads car as he has to pick a random neighbor on your street and take their car. Unless of course in the rare occasion you just "gave" your dad or your neighbor your car to "hold" until the bk is over.

I totally agree. The trustee couldn't care less if your Dad has a warehouse of cars, he isn't the one filing. Far as moving anything into your name, I would wait until this is behind you. Not sure on claiming insurance on the means since you do not own the car, your attorney can advise you on this.

Another thing, I assume you are a C7? Well below median income? Have you done the means test? If not, I would recommend you do so. Look at your expenses, because if you need the utilities for an expense and Dad's paying them, you can not claim them.

Good luck

[whipster1]

If you have insurance, fine. If you buy gas, fine. Your Dad has lent you a car to drive till things get better...they are not yours till your name is on the title. DON'T RAISE RED FLAGS BEFORE FILING.

[ForumReader]

At our 341, the trustee was only concerned with CASH help from family members

If you feel comfortable, could you please fill in a little more with the trustee being concerned about cash help from your family members? Did the trustee go after them? Just curious and thanks!

[COgirl]

I'm curious about the cash help as well...what are the implications? My parents have been sending money to cover my car payment, but I can't imagine it's enough to make a difference, since we're unemployed.

[bankruptsee]

It wasn't me, but at our 341 there were quite a few people recieving help from family. The trustee simply asked if they were still recieving help since they included it as income on their petition.

I don't know the details of their cases though, sorry.

This one guy was having his bills paid by a girlfriend but had returned to work. I suspect he's gonna be screwed.

[jribe]

definitely do NOT put any of the cars in your name. As other mentioned- you will have a transfer issue; as well as you'll need to be able to exempt the value of the car; or it will be taken by the trustee to pay your creditors.

It's not a problem that you pay the insurance. It's as simple as saying "my father has been very generous; he knew that our cars were let go before we filed and he has been letting us drive his cars. He only asked that we keep up the insurance on them"

That's it. There is no red flag there. Did anyone have their "own" car when they were 16? Probably not. You drove your parents right?

The trustee has no way of taking the cars from your father; simply because you have insurance on them. They are legally his- it's his own accord to let someone else drive them and he cannot be punished for doing so.

[GrlinFL]

Thank you all. I feel ALOT better now.