hiding assets from creditors & S-Corp questions

[ThisorThat]

Hello all. I've been an avid reader of this forum, but first time poster. I'm intending to file bankruptcy soon because of CC's and a judgment (haven't consulted with lawyers yet). And thanks to all of you, i have a much better understanding of this process and what to expect. I do have a couple of scenarios though that I was hoping you guys can help me with.

1) My girlfriend and I had just bought a car for $12,000 in March of this year free and clear and both our names were on title. After I lost the judgment in May, I decided to take my name off of title so they can't come after it, and just leave it under my girlfriend's name (I wasn't thinking of bankruptcy then). Now, i'm interested in filing for BK to get the judgment and mounds of CC discharged, but I read somewhere that the trustee might frown upon me taking my name off the title in attempts of hiding it from creditors. Is that true? And if so, how much of an impact do you guys think it would make on my bankruptcy? I would definitely list the joint ownership of the car in my petition and use my wildcard exemption to protect it, so it would be fully disclosed. Would fully disclosing it make it less of an issue? Would it be better to wait a few more months to file, or maybe put my name back on the car and wait a few more months?

2) I also have a new S-Corp business that I just created in April that I'm trying to start up. This is side business for me, as I work full time as well. I haven't made any money in it yet, and don't plan on to for at least until after I get my bankruptcy discharged. But I also read somewhere that I would be required to close my S-Corp if I file for BK. Is that true or did I mis-read something?

Thanks in advance...

[2manybills]

I would say probably disclosing the car and using it as a wildcard would be a must.

We had a little side business also that we included in our BK, but my husband has a regular job also. We shut the business down in December, so I am not sure about an S-corp. that makes no money. If there is no debt on the business and no assets of the business, I would say that it does not have to be named in the bankruptcy.

BUT, consult with an attorney, be sure you disclose everything and be ready to provide documentation should it be needed.

I can tell you in Orange County, the courts are jammed. There were 85 people on the calendar between 1:00 and 3:00 on the date of my 341.

[ThisorThat]

85 people in a 2 hour slot? WOW - at least if the trustees are that busy, they won't be as likely to ask as many questions... hopefully

[2manybills]

They are slammed but I can tell you, the folks that did not have what he asked for (if he did) he was not happy with. And he really was ticked at a "mill" attorney for not having her clients prepared. He was great to us. In the end, it makes a difference what kind of attorney you retain. The UST was only there for one case which was a case that had something to do with identity theft (very weird).

[frogger]

I don't think that you are going to be required to close down the S-Corp. Just make sure that you disclose everything, including the S-Corp and any assets that it may have.

Good luck.

[OhioFiler]

The S-corp is an asset (or liability depending on your equity situation) and you'll disclose it just like any other asset.

The transfer of the car to your girlfriend is a problem. You'll need to be able to exempt your share of that car because the trustee will consider it your property. Be prepared as well to prove she actually paid for a portion of the car.

[AngelinaCatHub]

Thisorthat:

After I lost the judgment in May, I decided to take my name off of title so they can't come after it,

This is illegal in any form as it can be set aside as to avoiding the collection of a Judgment. Not only is it a bk problem, but they can also reverse the transfer of ownership back to the original Title. Even if you changed or transferred ownership or other assets during the legal process before the judgment was awarded that is attempting to defraud the Judgment. Sorry but I'll look up the law and put it out here.

You will probably get by in the bk, the other, I don't know. 'Hub