Help with Car question and family help

[momof3kids]

We are filing in a week. We are way upside down in our auto and will be giving it back to the bank. We won't have a vehicle after its gone. Family wants to help in anyway that they can. I've looked at used cars. Problem I'm finding is even if I spend under 5k for the auto, the value is still slightly higher. If family gives us 5k cash for a car won't that raise a flag on income? Can we finance a car through them? We our a family of 5- 3 kids being under 7, so I'd like to get something safe and low cost.

Also, my husbands Grandmother passed away and he received $5600 from her. His father went ahead and claimed it in his name so we aren't anyway attahed to it. He wants to give us this money. At what point could we take this from him and keep the money? We will need moving money as our house will be going back to the bank too. We are in UT. Thx

[momof3kids]

bump...

[backtoschool]

Your family cannot give you money for a car, buy a car for you, or give you your inheritance a year before you file for bankruptcy, or the trustee will take it for the bankruptcy estate.

Here are some alternatives:

1. Your family could buy a car, leave it in their own names, and let you use it.

2. Your family could pay some of your expenses directly until your 341, and that would give you access to some of that money without having it go into your bank account or be an asset of yours.

[momof3kids]

Thx, at what point can we barrow money from them to buy a car?

[backtoschool]

To be safe, you should wait until after you are discharged. Trustees are trained to look for any transfers of money or property between family members, and going after those transfers are low hanging fruit for the trustees.

[momof3kids]

So how do we insure the vehicle if borrowing? Sorry for so many questions... just want to do this right.

[backtoschool]

You can still have the insurance in your name. You will have to have your family (the owner of the car) on the insurance as well though, since they own the car.

[SunshineGal]

Please ask your attorney first, but I would think if they loaned you the money and placed a lien on the title, they would become a creditor in the BK.

[momof3kids]

Thx, we really need a car and thought this would be a possible scenario. We do have a 86 Ford Bronco, lol... it's def a beater (he paid $1000 for it a few yrs ago, intended on fixing it up)and I can't even drive it, as it's a stick So I could have hubby go to the store and take the kids to school. I aren't current in our auto and are too upside down to keep it, just wouldn't be smart.

[simplicityof]

Your family cannot give you money for a car, buy a car for you, or give you your inheritance a year before you file for bankruptcy, or the trustee will take it for the bankruptcy estate.

What happens when your car is higher than the exemption and the trustee offers you the opportunity to keep it by coming up with the difference. Where does he/she expect the money to come from?