Filing Chapter 7 - ? Car Not In My Name?

[thebolt]

Hey guys (and ladies)..first..this is a great place and am glad I found it.

Now...I am filing Chapter 7 and have a question. My car is not in my name, it is in my father's name due to my horrible credit right now BUT I make the car payments. I pay in cash at the dealership (used car lot). Is this going to be a major problem?

Thanks

[tigergem]

Well. I know this much. You won't be able to claim the car ownership expenses. You don't get to claim the car ownership exemption. And you also don't include the car loan in your filing.

As to whether or not this is considered an "insider payment", (hence, a problem), I'm really not sure, and cannot advise.

But I will say that it's probably good that you pay in cash.

[justbroke]

Yep, you definitely won't be able to claim the expense because you are not legally responsible. It may be an insider preference since you're paying your Dad and not your (unsecured) creditors... unless you were paying them as well.

Worse case is that they go after the dealership for the preference... because you paid it directly to your Dad's benefit. Now, they may go after dear old Dad, but I don't know how the Trustee will see this.

[tigergem]

Worse case is that they go after the dealership for the preference... because you paid it directly to your Dad's benefit. Now, they may go after dear old Dad, but I don't know how the Trustee will see this.

Wow. If the trustee goes after the dealership, what would that do to Dad's car loan and his credit rating? Especially if the OP made ALL of the payments? Would the dealership attack Dad as if no dime had ever been paid on the loan?

Just being nosy here.

[justbroke]

The dealership would go after Dad. I'm not sure that the Trustee would go straight for the dealership.

[thebolt]

Thanks guys...does anyone have a link that will tell me what the max is I can claim on allowable expenses in California...ie...clothing, food, etc.

[tigergem]

Here's a link to the California bankruptcy exemptions - http://los-angeles-bankruptcy.net/ca...exemptions.htm (I have no idea how accurate the information is on there.)

California has two systems you can choose between. You have to choose one - you can't mix them. California does not allow filers to use the Federal exemptions.