I was going to give my daughter a car for christmas that I have paid for and that I'm going to keep when I file.The car is exempt.Do I need to just leave it in my name or transfer it?
Donald
Donald
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12-15-08 Filed Chapter 7
02-02-09 341 meeting awaiting discharge
04-13-09 Discharged and Closed
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At this point, you need to leave it in your name. If you transfer it to you daughter BEFORE filing BK, the car would lose its exempt status and become an insider transfer. -
What is the safety margin time wise for selling/transfering a vehicle prior to filing ?? I have an extra car a nephew (different last name) has offered to buy for $4K and i wanted to use the proceeds to pay property taxes. I don't plan on filing for 6-9 monthsOriginally posted by HHM View PostStopped Paying CC's 2/2009. Retained Attorney 1/10/2010 Filed 1/23/2010. Discharged 5/19/10 $187K CC, $240K 2nd,$417K 1st, No asset Ch-7Comment
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It is usually six months; however, a trustee can request documentation going back to one year or more if anything appears suspicious.Originally posted by albacore44 View Post_________________________________________
Filed 5 Year Chapter 13: April 2002
Early Buy-Out: April 2006
Discharge: August 2006
"A credit card is a snake in your pocket"Comment
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You can sell the car and pay your taxes not having to wait 6 months to file. Keep a paper trail of the money spent.
Asked my lawyer this last year. He said, sell whatever you want as long as you spend it on "living expenses" and can show receipts.
The fraud in transfers is due to transferring to hide assets, not selling items to pay living expenses.
HHM is correct about the car losing exempt status once you sell though. So, the transferring of an exempt item nullifies the status.
Also, there is no difference if you transfer to an "insider" or not. It is still a fraudulent transfer of assets. If you owe an insider money and you transfer an asset to cover the loan, then the fraudulent transfer also becomes an insider preferential payment.
Confused yet?Last edited by fltoo; 11-29-2008, 07:44 AM.Comment
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Actually, the look-back period for insider transfers is 1 year.
But if you sell the car for fair market value, there is no issue. The issue only arises if you "give" or "give away" the car within one year of filing BK.Comment
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Oh yea, asset has to be sold for market value.
Actually, the look back for fraudulent transfers is two years. Preferential payments to insiders are one year.Last edited by fltoo; 11-29-2008, 08:04 AM.Comment
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