Personal Auto Loan

[freedom5]

Hi, It appears I will need to file a Chapter 7 BK. My biggest concern is my car. My father gave me money to purchase a new car 3 months ago. I own the car free and clear and it is titled in my name. We have a verbal agreement that I will pay him back at some future point. Can I record him as a lienholder on my car so that it is not part of the bankruptcy? We can formalize the agreement in writing now...as the car was only purchased 3 months ago. Or is it too late to do anything? Thank you in advance for your help!

[lrprn]

Hi, It appears I will need to file a Chapter 7 BK. My biggest concern is my car. My father gave me money to purchase a new car 3 months ago. I own the car free and clear and it is titled in my name. We have a verbal agreement that I will pay him back at some future point. Can I record him as a lienholder on my car so that it is not part of the bankruptcy? We can formalize the agreement in writing now...as the car was only purchased 3 months ago. Or is it too late to do anything?

First, I assume you've titled this car to yourself making you the car's owner, correct? If you have, then understand that if you are listed as the legal owner of the car and you file bankruptcy, there's not a state in the country with bankruptcy exemptions that will completely protect a new car that is paid in full. To keep the car, you may be able to strike a deal to pay the trustee many thousands of dollars over whatever your state will protect or risk losing the car to the trustee's auction block.

I suggest that you set up free intial interviews with 3-4 experienced bankruptcy lawyers in your area. Give them your situation and find out if there's anything that can be done legally. Perhaps it's still possible to set up a notarized, witnessed contract between your dad as the lender and yourself before you file - only a lawyer can tell you if that's going to pass scrutiny so close to filing in your local court or not. If there isn't anything you can do legally at this point, then at least you know where you stand.

In hindsight, you would have been much better off to ask your dad to buy the car, title it to himself, and then allow you to drive it. Unfortunately, what's done is done

[myid4u2c]

You need to talk to your attny ASAP. with only 3 months you might be able to still prefect a lein on the car. When are you panning to file?