Cashed a Car

[aimlow]

Thinking about filing Chap 7...

In April we cash out a $11K van, from our income tax return and some of our savings. Since the wife card died and needed at least $2K of work done on it and the that car had 200K miles on it...

How does this play out in the Chap 7 filing?

[justbroke]

What do you mean? Are you saying that you purchased a van for $11K in cash? If so, you need to look to your State's specific exemptions to determine if that vehicle is going to be covered under an exemption. If you're in California and don't have a home -- or just use System 2 -- you should be able to exempt the vehicle under the gratuitous wildcard.

Let's know what State you're in.

[aimlow]

Live in PA, the car is under the wife's name only, to replace her car which was only in her name too.

Will be using the Federal Exp... hopefully

Married but I will be the only one filing for Chap 7.

So how does that play out? Its not fraud since we can show that we use our tax refund and pulled from our savings... Just afraid they might take her car.

[justbroke]

It's not fraud. If the car is titled in her name and only you are filing as a sole debtor, then the car shouldn't be an issue. If your filing singly, may I ask if you have co-debts with your spouse? If so, you can literally leave her holding the bag.

[aimlow]

No co-debts on anything besides the house.
But the house has exemptions per the Fed Exp for equity...

I just need to file because we can't keep up with the CC payments and the wife out of work for a year now... before then we were great...
now...

No savings, living paycheck to paycheck...
Even the kids savings were drain out to buy the car for the family...

So you don't see a problem with buying the car and title in wife's name... since it was not a transfer, it was a bought item...

[justbroke]

So you don't see a problem with buying the car and title in wife's name... since it was not a transfer, it was a bought item...

I don't see it as a transfer since you didn't sell her the vehicle in order to hide assets from your creditors. I wish you the best of luck. I would file through an attorney.

[dirkdigler]

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