Question about Ch 7

[tigerman]

Me and my wife are getting ready to go see a lawyer about filing ch 7, we have 2 cars that are both paid for, 1 is worth about $2000 and the other around $10000, should I put the one thats worth more in another family members name so nothing can happen to it? can I do that? is there a certain amount of time I have to do that? I know its not the honest thing to do but I don't want to lose my car. any help or suggestions.. thanks

[NoMoreCards]

Me and my wife are getting ready to go see a lawyer about filing ch 7, we have 2 cars that are both paid for, 1 is worth about $2000 and the other around $10000, should I put the one thats worth more in another family members name so nothing can happen to it? can I do that? is there a certain amount of time I have to do that? I know its not the honest thing to do but I don't want to lose my car. any help or suggestions.. thanks

Perhaps I am misunderstanding. Are you asking us how to hide assets from your BK filing, and the proper time-line needed to get away with it?

[DeadManCrawling]

You don't want to change title close to filing. Or even, within a couple YEARS of filing, unless it was a fair deal at market value with exchange of a real purchase price. Then you would have to account for where the money was spent.

The trustee will look very unkindly on that sort of thing, as your attorney will tell you when you see them.

Good thing you asked first, since many people make this mistake and it can ruin the whole case, or make things very difficult.

Transfering title would be viewed as an "attemtp to hide assets". Not only would you have problems, the trustee would still be able to take the car from your firend or relative. Title records are public, and are one of the first things trustees look at.

Also, this sort of thing would bring far more scrutiny to you, to see if there were other moves made. More trouble than it is worth for a couple grand.

You are obviously new, just starting the process, so please don't take offense at anything I have written or the posts above mine. You luckily avoided a mistake, by asking before doing this.

Good luck, there is lots to learn and this foum is very valuable for information.

[tigerman]

Yes I guess thats what I am asking and I'm sure I am the only one..wink wink

[tigerman]

Thanks Deadman, that's the kind of answer I was looking for, thank you again!

[justbroke]

Me and my wife are getting ready to go see a lawyer about filing ch 7, we have 2 cars that are both paid for, 1 is worth about $2000 and the other around $10000, should I put the one thats worth more in another family members name so nothing can happen to it? can I do that?

Don't even think about doing that. That's considered a fraudulent transfer, and the Trustee would just "take" it from the family member and sell it.

is there a certain amount of time I have to do that?

2 years.

Are you sure it's not covered under one of your State exemptions? If you're in California, System 2, would cover that if you don't own a home.

[tigerman]

I'm in Michigan and I'm not sure what the laws are here, what will be my options as to keeping my car, will they take it and sell it? is there any way for me to keep my car?

[backtoschool]

I'm in Michigan and I'm not sure what the laws are here, what will be my options as to keeping my car, will they take it and sell it? is there any way for me to keep my car?

Michigan has the option of using Federal exemptions. If you do not take the homestead exemption, you will have enough exemptions to cover both cars.

If you transfer the car to a family member up to two years before filing, that is considered a fraudulent transfer, and the trustee will simply go to the family member and demand the car, or the cash equivalent of the car.

[OhioFiler]

Yes I guess thats what I am asking and I'm sure I am the only one..wink wink

Wink winks are frowned upon here. There is no reason to give wink wink advice on this forum. It was designed and works well without the need to discuss skirting the law.

[Michigan1951]

OhioFiler!! I burst out laughing at your response to the wink wink advice. That was too funny. I loved it...!! Good advice to Tigerman in Michigan from everyone else that posted back to Tigerman too. I needed a good laugh today for sure!!

Good luck Tigerman, and you came to the right place for advice. Some is firm, and some is easy on the ears, but honest..