Car question

[Brittanie55]

I bought a car last year with money I got from a car accident. A few months ago signed it over to a dealership so my boyfriend could use it as a trade in for a new car. He paid cash for his new car. I figure the trustee is going to ask something about this. My attorney said something about listing my boyfriends car, the one he got using my car as trade in, as exempt. He said I would have some kind of equity in the car since I signed my car over to the dealership.

Can they go after my boyfriend for anything? The car is not in my name and my boyfriend never had the title in his name either, it went straight to the dealership.

[JRScott]

In theory the Trustee could undo the transaction. However its unlikely the dealership would still have your car so not sure what would happen. At the best he might require your boyfriend to pay you fair market value for the car. Your lawyer has a strategy I'd follow his advice.

[Chowder]

If you are not on the boyfriend's title, it's not your asset. I'd get a second opinion on that.
You are also free to sell any asset you have "for fair market value" prior to BK.

You got nothing from your boyfriend in consideration for your car?

When are you planning on filing?

[Brittanie55]

No I got nothing from he because he pays for all my bills, he is basically how I survive right now. I do not have any income, no assets, pretty much nothing. If a bill is in my name he pays it, so since I don't really drive that much I let him use it as trade in.

He does have 2 cars, one given to him by his dad, that I sometimes drive around, and I do have insurance on that car but he pays for it. No car titles are in my name and the insurance that I do have on one of the cars is up in November, I am going to file around Nov 15th. Since I will be filing after my insurance is up, and I wont be renewing it, do I have to list that anywhere in the bk?

[Chowder]

Him paying your bills could, and should, be considered reimbursement.
The thing is, any residual value from your cars transfer is an asset. Ideally, you want to be able to show that whatever the dealership gave in trade-in value has been exhausted by you in the form of living expenses. So there would be no asset left for the trustee to disburse.

I guess your Attorney is trying to claim part of your boyfriends car in an effort to use your vehicle exemption?

If so, possibly he thinks there is some asset exposure.

[Brittanie55]

The car got him $4500 trade in value. He has paid every single thing for me since then and even before then. So I am sure it has added up to what the trade in value got him. I believe what my atty said was I have equitable interest in his car, but since his car is new, that there would not really be much, if any, equity in it.

[Chowder]

Interesting. So your $5k vehicle exemption is applied to your 'equitable interest' in another's car.

Then it sound's like once that payment to your folks is out of look back, you're good to go.

[Brittanie55]

To be honest, I am really stupid on the equity thing. I do not understand it for one second. So I really have no idea what equitable interest is. All I know is that he said he will list the car as exempt and it should not be a problem. He told me may case is fairly simple but because of the weird situation with the car it could cause a speed bump or two. Since I wont be filing until a year and some days after I paid off a family member he said all should go good. That doesn't mean that something can't go wrong. I am preparing for the worst and hoping for the best.

[Chowder]

If your car had been sold at FMV, rather than gifted, your case would be pretty much speed bump free.
Since your filing next year, it's entirely plausible you'd have spent those proceeds on basic living expenses.

[Brittanie55]

I am actually filing this November.

[keepmine]

If you have no income and no assets, why are you even filing bk at this point?

I'd suggest holding off until your finaces are stable. You need a job with some sort of health insurance benefits.You don't want to file bk and 6 months from now have a serious illiness and huge medical bills and already played the bk card.

[Brittanie55]

I am filing because I do not want to get sued from my credit card companies and that is the next step with them. I am also getting married next year and want to have filed before the wedding.

[Chowder]

I am actually filing this November.

Oh. You had mentioned March.

[Brittanie55]

Sorry don't know why I did that, maybe because my brain is on overload with all of this. Can't think clearly I suppose.

[keepmine]

I am filing because I do not want to get sued from my credit card companies and that is the next step with them. I am also getting married next year and want to have filed before the wedding.

So what if you get sued? You have nothing for anyone to take.
I guess I can see wanting to get this thing done before marriage but, make sure you're not in a vunerable state post bk.