Car - how would you handle this?

[justagirl]

So, I've never owned a car. In fact, never even had my license (boring story/reason that I won't bother you with...lol). This past winter, I finally got my learner's permit and have been driving my parent's van to practice.

A couple months ago, I found a car for sale, good condition for a good price and came very close to buying it, took money out of bank and arranged to meet with seller to do transfer. I backed out at the last second, as it became apparent to me once I looked at my bills that I could not afford to buy a car, no matter how good the deal. Also, with only having a learner's permit, I needed someone else on the title as I have having trouble finding an insurance company to provide me coverage with only a learner's permit.

This weekend, my boyfriend's uncle called him and asked if he wanted his car - as a gift. My boyfriend jumped on the chance - car runs very well and just has a few cosmetic defects...after all, it was free. My boyfriend then told me about it and that it could be our joint car (a backup car for him and something for me day to day). We jumped on the chance, before his uncle changed his mind, and did all of the transfer yesterday, and it is on my boyfriend's insurance policy.

About an hour after, I realized...I'm about to file BK...and now have a new asset. I checked out the car's worth and the exemption allowed...taking into account the total value of the car (not just my half), I have enough exemptions to use.

I'm just worried as to how it will appear to the trustee, since it was titled jointly. I don't want them to think I was trying to do something wrong.

I wonder if I should claim the entire value of the car to show that I'm not trying to be sneaky.

What is your opinion?

Thanks,
JAG

[AngelinaCatHub]

You have a good paper trail so I would not worry. It is a certified gift actually to your BF and it was he that allowed you onto the Title. It is worth asking your lawyer, but if the car is worth less than $1000.00 by Kelly Blue Book, just claim the exemption. 'Hub

[AngelinaCat]

Hi JAG, in reading over your question and 'Hub's response, I thought I better go and check. In the Nolopress Ch7 book, Pennsylvania doesn't have a provision for exempting a car--or much of anything else, for that matter. However, Pennsylvania is one of the states where you can choose to use the Federal Exemptions rather than the State's. The Federal Exemptions allow you to exempt a motor vehicle up to $2,775.00.

Here is a link to the Federal Exemptions for your state:

http://www.bankruptcyinformation.com/exemp-fed.htm

However, as 'Hub said, the car really belongs to your BF; he is just letting you use it.

Good luck!

[justagirl]

Thank you both for your replies - what a team you make!

I'll be using the federal exemptions as they fit my needs better.

I've just gotten a bit paranoid as of late. I don't want it to appear like I'm trying to be shady or "pull one over."

Thanks again for taking the time to respond.

JAG

[AngelinaCat]

Hi JAG. Believe me I well understand the paranoia. In the beginning stages when we were filling out the forms and dealing with our extremely un-helpful attorney, there were times that it was painful to even breathe. We had not yet found this forum. This has been the great source of help to us.

It WILL get better!!