Question Parents selling me there car, will it be part of the estate?

[BK74]

My Parents our selling me a car for $16,000 for which they own, it will be for 10 years, to keep the payments low.
But Chapter 7 might be on the horizon; how do I protect them from losing the car to the trustee, when the title goes under my name.
or should I not title it with my name?
Can they be a lien holder even if they are family members?
Thanks

[momofthree]

Yes, they can be a lien-holder on the vehicle and they need to make certain they perfect the lien immediately upon transfer. Their names should be shown as lien-holder on the pink slip just as a finance company would, and if you can have a basic note drawn up (I'm sure there are templates you can use online) for you to sign that would also be helpful. Additionally, you'll want to have your attorney look over all of it to be sure it's in order before filing.

Alternatively, they could keep it in their name and lend it to you to drive. However, you wouldn't be able to claim any auto ownership or operational expenses on your means test or schedule J.

[BK74]

Thanks!