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MY car and Motorcycle

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    #1

    MY car and Motorcycle

    I just got divorced and had to pay attorney $3000 if I take a loan against my bike to finish paying him off will the debtor (a friend) lose the bike ? and can I get in trouble?

    And then to do the BK I need to take a loan against my car will I lose that ? I am currently unemployed.
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    #2
    Sounds like you don't own the motorcycle, but your friend does. Can't believe that you could take out a loan against it if you don't own it. Also, it will be very hard to get any type of loan if you are unemployed.

    Find employment first, then worry about paying the attorney or filing bankruptcy.
    Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
    I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.

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      #3
      No I own the Bike a Friend is Lending me Money but wants a lien in return. I am just making sure that its a Win WIN for everyone.

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        #4
        I would talk to a bankruptcy attorney about this before doing anything.

        I've read about the scenario you describe and in that article the attorney advised that the debt absolutely cannot predate the lien and the transaction would have to be done just as if it were an arms-length secured property deal. Contract, recording the lien, iron-clad paper trail, etc. Still, I don't know if it's good advice.

        If you can get the title transfers past the trustee, then there are two other potential issues that I'm aware of: equity and budget. If you can't exempt your equity in the motorcycle and if there's enough there to make it worthwhile, the trustee will sell the asset. If that happens, the liens will be paid before the trustee takes the rest. So presumably, your friend would be safe. There are people on the forum who can advise on the process of buying non-exempt assets back from the trustee, but I am not one of them.

        Since you already have a car, the motorcycle expenses are not necessary. I have read that it's possible to keep a motorcycle through a chapter 7 in cases where even with the motorcycle payment backed out of the budget, there was nothing left to pay creditors.

        Still, I would make sure to run this by an attorney before you do anything.
        There are two secrets for success in life:
        1.) Never tell everything you know.

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