$30,000 Car

[NoLawyerYet]

Is it going to look bad if I'm driving my mom's $30,000 car? Are they going to dig into where she got the money for it?

[StartingOver08]

If you are the one that is filing, then your finances are reviewed with a fine tooth comb. Is your mother part of your household?

If your mother lent you the car, it will not be an issue. However, if your mother gave you the car (your name on title, no lien on the car) then that will be considered an asset in your BK estate. You would need to exempt the car, if possible.

[NoLawyerYet]

If you are the one that is filing, then your finances are reviewed with a fine tooth comb. Is your mother part of your household?

If your mother lent you the car, it will not be an issue. However, if your mother gave you the car (your name on title, no lien on the car) then that will be considered an asset in your BK estate. You would need to exempt the car, if possible.

No, my mother lives out of state. The car would be registered to her, and i would be driving it. I'm more concerned where she got the $30,000 to buy it, or is that not an issue?

what about if she gives me the car after the BK is final? and i could register it in my name?

Now that you mention it. Maybe i should find some one who lives in my state?

[StartingOver08]

No, the issue is not where did the money come from to buy the car you are borrowing. The issue is: do you have any assets?

Because the car is not yours, and you have borrowed it from your mother, you should be fine for that. I am making an assumption that she is letting you use the car without a monthly payment to her.

You can buy the car from your mother after your BK is discharged if you so choose.

At the 341, if the Trustee asks what you are driving, you can tell them you are borrowing a car from your mother during your financial difficulties.

[keepmine]

Your mothers finances are no concern to the bk trustee and there is no law saying you can't borrow a car. Once the bk is discharged, your finances are your own business. You may accept whatever gifts you please with no problems.

[ansky0007]

Based on your previous posts you will have a complicated BK. Your trustee is surely going to ask for all bank statements for atleast 1 year prior to your filing and maybe longer. (Business and Personal) If you have given money to anyone such as your mother, friends, etc. they can go after these members to reclaim these funds. If by chance you gave your mother the money to buy the vehicle it could be fraud. You need to start speaking to lawyers and be completely honest with them. If you hide assets from the lawyer and the trustee finds them they will surely go after them.

[Over our heads]

No you can not give your mother, your friend, or any other person, 30k to purchase a car in their name.

[wonkettegirl]

No you can not give your mother, your friend, or any other person, 30k to purchase a car in their name.

My thoughts, upon reading between the lines, exactly.

[StartingOver08]

Thank you for pointing it out...now that you said it, it is clear but I certainly missed it!

[rockyroad]

Why not just buy the car on your own and make monthly payments? You don't want to pay cash and have a 30k asset on your hands, but financing the car with a small down payment, it will be some time before you actually have any equity in the car.
I just purchased a new 30k car and financed it for 5 years. The payment will not be an issue as I'm really only looking at discharging business debt. I have no personal consumer debt.
If you are looking at business debt, which I assume you are according to your posts, you should be exempt from the means test anyway so your car payment amount should not be an issue, granted it is within reason. Purchasing a 30k car with at a decent rate should leave you with a reasonable payment as it did me.

[JRScott]

As some others here are saying.

If you gave your mother 30k to buy a car and then she loaned you the car a trustee is going to view that as an asset.

He'll probably seek your mother to repay the bk estate 30k or seek her to surrender the car to it.

The lookback for insider transfers is 1 year minimum, however the trustee can go back much further if he deems it necessary and given what you've posted in some other threads you better be ready for 3-5 years lookback.