Classic car (gift )

[isabella19]

My dad died in Nov 2007, had a 64 Impala that he wanted his Grandchildren to have when they grew up. I am the oldest so he asked me to take the car from his wife (step mother), keep the car until the Grandkids get older. I have 4 siblings & we have always considered the car, "all of ours", even though I insure it & have it titled in my name. It currently sits in my brothers garage. I am doing a Chptr 7, with a paralegal & do not want to loose my dads car. It really isnt mine to loose, just on paper. It is a Classic & my guess is its worth about 13k. Any suggestions would be so helpful!!

[fltoo]

Tough one. It is titled in your name, so is an asset of your BK case.

Can you exempt it? If not, the trustee will take and sell it.

[isabella19]

Thank you. My siblings want to put a lien on it since it was promised to them & my brother who has the car wants me to gift it to him .What will happen if I don't own the car anymore when I file? What could the Trustee do?

[StartingOver08]

Could be considered a fraudulent conveyance to transfer the car to an insider on the eve of bankruptcy.

Especially since this is an asset that is owed free and clear (no liens, right?). That is just the sort of transaction the Trustee keeps an eagle eye out to discover.

Now, if you have some time to wait to file after the transfer, you should be OK. I believe you would need to wait a year. Here is a link to an article discussing when you would be safe:
http://www.************************/...nt-conveyance/

[isabella19]

Thank you so much for your advise. I do not want to do anything fraudulent, that is not my intent. My brother has the signed title & he is going to put in his name this week, no matter what I say. It was more than an assett. It was a family car that just happened to be put in my name but is now my problem. I think we will do my husbands BK & put mine off for a year. Once again, the advise on here is appreciated.

[StartingOver08]

Make sure you read the entire article. The look back period could be longer. I am putting a portion of the article below for you so you can review it:

Very generally, a fraudulent conveyance is a transfer of money or property from a debtor to someone or something else when either (1) the debtor intends to defraud creditors or (2) the debtor received less than a reasonably equivalent value in exchange for the transfer and made it while insolvent. So, for example, the proverbial: “I transfered my house out of my name so my creditors wouldn’t get it” is a fraudulent conveyance. These transfers can create quite a few problems in bankruptcy.

A strict answer to the title question is one year. That is because conveyances that are actually fraudulent disqualify the debtor from receiving a discharge if made within one year of the filing of a bankruptcy. However, the period of time in which the property can be recovered by the trustee is longer.

The limitations period for avoidance of fraudulent conveyances has changed over the years, but currently it is two years under the Bankruptcy Code (Section 548) and whatever longer period is available under state law (Section 544). The latter will clearly vary, but since I practice in Massachusetts, I will use its laws as an example. Massachusetts adopted the Uniform Fraudulent Transfer Act (UFTA) in 1996 and, in the process, created a four-year statute of limitations for avoidance of fraudulent conveyances. This blessedly simplified the patchwork of limitations periods that existed in the case law previously. However, the complexity hasn’t completed been scratched. When the trustee can allege that a hidden agreement exists between the debtor and the recipient of property–such as when a family member takes title to real estate with the understanding the debtor still really owns it–the trustee can argue that a resulting trust for the benefit of the debtor has been created. When there is such an agreement at the time a bankruptcy is filed, there really is no statute of limitations because the trustee is simply succeeding to the beneficial interest of the debtor in the real estate or other property. See, e.g., In re Simpson, 334 B.R. 298 (Bkrtcy.D.Mass. 2005).

It also warrants mention that the 2005 BAPCPA amendments created a special 10 year look-back period for fraudulent transfers to self-settled trusts of which the debtor is the beneficiary.

Fraudulent conveyances should be avoided. Contact an experienced bankruptcy attorney before transferring any property outside the usual course of conducting yourself if you are insolvent or can no longer pay your debts as they come due.

http://www.************************/...nt-conveyance/

[fltoo]

Giving car to brother is definitely a fraudulent transfer of assets and has a 2 year look back period.

You will have to wait it out 2 years to be absolutely safe or come up with money to give trustee.

I had a transfer of assets to a family member as innocent as yours is and I waited 2 years. My case closed almost 2.5 years after I decided to file, but my filing was trouble free due to the wait.

[eddiep]

Was the car left to "you" in his will or was it in writing that it left to all children and grandchildren? Not sure if that matters but I would think your brother may be able to put a lien on his interest in the property. Just an idea