Questions about property owned by 2 people but only 1 person filing BK

[KFisher521]

Hello

I'm a new member to this board so I'm not exactly sure how to correctly word things so please forgive if I sound silly..

There is a possibility that I may be personally be filing Bankruptcy but have a few questions regarding our property/exemptions. First off, my husband will NOT be filing for BK himself. We have 2 cars owned jointly together right now and I'm concerned about those 2 assets if I decided to file. Can the trustee take the cars away to be liquidated for cash in MY bankruptcy case, even though the cars are also owned flat-out by my husband who isn't filing BK?

That is the only 2 assets we own. Our house is solely in my husband's name and it's paid off free & clear. And we do not have much money in our bank account.

Please, any answers about my above exemption/asset questions would be greatly appreciated. Thank you!

[justbroke]

This totally depends on what state you filed in and how the cars are titled.

Since you live in Florida, this is quite simple. If the title on the cars reads "MR. SMITH OR MRS SMITH" then you have trouble! In this case, it's called a joint tenancy and each of you own it 100%.

Florida Statute 319.22 Transfer of title. (2)(a)(1)

a. When a motor vehicle or mobile home is registered in the names of two or more persons as coowners in the alternative by the use of the word "or," such vehicle shall be held in joint tenancy. Each coowner shall be deemed to have granted to the other coowner the absolute right to dispose of the title and interest in the vehicle or mobile home, and the signature of any coowner shall constitute proper endorsement. Upon the death of a coowner, the interest of the decedent shall pass to the survivor as though title or interest in the vehicle or mobile home was held in joint tenancy. This provision shall apply even if the coowners are husband and wife.

You need to look at those titles!

[KFisher521]

Thank you for the information. I did just look at our titles and Yes... it does say both of our names with the word "or" in between.
Is it possible for me to take my name off the title & just have my husband's name on it? I don't know anything about the BK laws so I'm not sure if they frown upon that or not.

[justbroke]

If you are about to file bankruptcy, do NOT play with the titles. The Trustee will specifically look for things that you "transferred" or "sold" within a year... and especially things you transferred or sold to a so-called "insider". (An insider is family, friends, business partners, etc.)

I suggest that you find 4-5 attorneys in your area and get a free consultation. The cars are a problem when there is the word "OR" in the title.