i need to give my ex a paid off car - how will this look?

[norcalsurfer]

my ex and i split last december and i let her use my car. it's paid off and it's worth between 6-7k.

we are both hurting financially so i would like to just give it to her. i don't want money for it. i do however need a couple websites built which i think she'll agree to. so i guess i wouldn't really be giving it away for free.

will this present a problem when i file bk? i'm not sure when i'm filing, but it will probably be at least 6 months.

anyone see a problem with this?

[justbroke]

Was she ever on the Title? If she was on the Title, were your names connected by the conjunction "and" or "or"? What State are you in?

Also, when you transfer a car title (or re-title it), and especially if it's a gift, you have to swear that it was a gift without any form of payment or barter. Otherwise, the receiving party will need to pay taxes on the blue book value.

[AngelinaCatHub]

Was she ever on the Title? If she was on the Title, were your names connected by the conjunction "and" or "or"? What State are you in?

Also, when you transfer a car title (or re-title it), and especially if it's a gift, you have to swear that it was a gift without any form of payment or barter. Otherwise, the receiving party will need to pay taxes on the blue book value.

Justbroke is exactly correct. However, I assume, this is an amiable parting? I would suggest that verbally it is part of the divorce.....?? Six months is a long time, so I would in my opinion not be a preferential payment or gift. After all, you are/were a husband. I think you should go and run with this and do it soon for time sake. 'Hub

[norcalsurfer]

no, she was never on the title. the title is solely in my name.

we're both in california.

if i "gift" it to her, will this look fishy when i file for bk?

[norcalsurfer]

@ angelinacathub - we were never married, just engaged. we did live together though for about 4 years. will that matter?

[AngelinaCatHub]

See above

[AngelinaCatHub]

HHMMMMMmm. I can't answer this however, your first post implied divorce. Now, if you wish to pay her by barter for a webpage(s) for same, I cannot see a problem as you are still in business and if it were green paper, or red sedan, what is the difference? Six months is till a good buffer. Do it soon. 'Hub

[fltoo]

Unless she pays full value of the car, you would have to wait two years to file since this would be considered a fraudulent transfer of assets.

[justbroke]

Unless she pays full value of the car, you would have to wait two years to file since this would be considered a fraudulent transfer of assets.

The operative word is "could" be considered fraudulent, but that's why NorCalSurfer is here planning.

I would go with 'Hub on this. It's a busoiness transaction to build a business website. It's not a fraudulent transfer if you receive equivalent services for the value.

For example, say the car is worth $5,000. If she does $3,000 of work, the Trustee would say that the other $2K was an preferential or fraudulent transfer. However, if she did $10K, $7K, $5K worth of work, then you have no issues at all. Just document it well!

She will need to pay taxes on the vehicle, so I'm only suggesting (you know, not legal advice) that you work the fees for registration and title into it somehow. Only, don't enumerate that in any draft contract you prepare.

Sounds like sales contract would read like... "In consideration for services rendered, I, NorCalSurfer Dude, do transfer ownership and title of a 2003 Mercury Sable valued at $5,000.00 to NorCalSurfer Chick..."...

Of course, I'm no lawyer, so I don't know how you'd draft that, but you'd want something like that for your records.

[soleprop]

can the car transfer not wait until after your bk is filed/discharged/closed? you *know* it will look fishy, this is why you're asking the question on a bk forum.

[norcalsurfer]

SOLEPROP - the car transfer could wait until after bk, but we are both facing a judgment from a civic case we lost.

the attorneys settled at 20k, and if we can't pay this (which we can't) they go after assets. i'm assuming the car is an asset they would go after. we both really don't have anything else.

i have my work truck which is worth about 1,800, the paid off jetta that's worth about 7k, and since i lent my ex the jetta, i bought a beater civic for 2k.

i honestly do need website work done, and she really needs a car. and we both don't want that sh$t bag attorney to take the car.

any ideas?

[fltoo]

can the car transfer not wait until after your bk is filed/discharged/closed? you *know* it will look fishy, this is why you're asking the question on a bk forum.

This is the best idea unless you can prove that she paid you (in some fashion) full value of the car or ask the lawyer how you would document the "bartering".

An "insider preferential payment" is money paid to a relative, business associate, etc. instead of distributing the money equally between creditors and has a one year look back period.

A "fradulent transfer" is giving away an asset before BK and has a two year look back.

Two different terms.

See what your exemption is for the car for BK purposes for your state. Maybe you can claim the exemption, keep the car and give it to her after the BK.

[norcalsurfer]

i'm pretty sure i can keep the car since the bk attorney i spoke with said i can keep 22k worth of stuff.

i'm worried about the 20k judgment that's being filed against us from the company we lost our civil suit to. i'm afraid he's going to take it.

does anyone know about judgments and what they go after?

[justbroke]

i'm pretty sure i can keep the car since the bk attorney i spoke with said i can keep 22k worth of stuff.

i'm worried about the 20k judgment that's being filed against us from the company we lost our civil suit to. i'm afraid he's going to take it.

does anyone know about judgments and what they go after?

They can't go after exempt property. So, the judgment would become a "claim" against the Bankruptcy Estate. Since you're using (I think) the System 2 wildcard exemptions, you have about $22K worth of wildcard deductions and that would cover the car plus $15K in other junk.

Since the judgment would be discharged through the Bankruptcy, they could only get what's distributed if your case is an Asset case.

They may not get anything! However, if the judgment was against the both of you, they may move and proceed against your Ex.

[soleprop]

but if she has pretty much nothing as well, she's judgement proof (meaning they can file for and even get one, but they can't get any assets from her because her estate fits within the asset value exemptions).

i'd say either file bk now to get out of the 20k settlement thing (the debt should be included and discharged in your bk unless it regards a tax debt, support obligation, or restitution for illegal activities), or wait for the judgement to become reality and then file bk and include the judgement in your bk for discharge.