Using sister's car

[crimsondawn]

I am using my sister's car, but she expects me to make the payments and insurance. I am worried this would look suspicious that I am making payments for a loan that isn't mine as well as paying for insurance. I did bill pay directly to the auto loan account number just once. Should I not do this?

[OhioFiler]

It's not a problem that you pay the loan for your sister. There is a possibility the trustee may not allow those expenses on your schedules if you list them as your own.

[crimsondawn]

I just didn't want it to be interpreted as a gift.

[BKDefender]

If you had a written agreement between yourself and your sister where you agreed to rent the vehicle from her for $X/month and you were responsible for regularly scheduled maintenance, then you might have better standing to deduct the expenses as auto expenses. You can write up an agreement, dated today, that states that the purpose of this agreement is to memorialize the oral agreement that you and your sister have been operating under since (DATE) as evidenced by payments of $X/month since (DATE) to present day. If the $X/month amount you pay happens to be the same as her car payment plus insurance, so be it. Then you would need to bring, to the 341 meeting in case the trustee wanted to see the agreement, the written/signed agreement and evidence of payments to your sister showing that the $X/month matches what is memorialized in the agreement.

--William