Writ of Execution for previously transfered vehicle?

[djvice]

Hi there,
New here but I have been reading and learning a lot from everyone's experiences. I know that when someone is going to file for Chapter7, they should not transfer a car to someone else within 2 years of filing, or selling for under fair market value.

However, what if that person decides to not file bankruptcy. Worse case scenario, credit card companies, collectors, are awarded a judgment. Lets say they go through the trouble to ask for a debtor examination and a writ of execution (meeting monthly quota I guess)...

Is the vehicle that was transferred within the 2 years safe under someone else's name? Since it is not the court's responsibility to collect on judgments awarded, there is no assigned trustee that has the power to "undo" said transfer.

Just curious.

[djvice]

*bump*
anyone?

[frogger]

However, what if that person decides to not file bankruptcy. Worse case scenario, credit card companies, collectors, are awarded a judgment. Lets say they go through the trouble to ask for a debtor examination and a writ of execution (meeting monthly quota I guess)...

So, you have a judgment awarded against you. It is possible that a debtors examination or interrogatories could be posed for you to answer.

If the intent of a transfer was to defraud a creditor, you could possibly have a problem.

However, how many times do you see a debtor exam or an interrogatory?

[tyson24]

If the car is paid off they could try and put a lien on it.

[newbie2]

You will want to look at your states individual laws regarding judgments & trying to avoid creditors...for example, if you transferred the vehicle as you were going through the legal proceedings you may be in violation of a state law regarding hindering the creditor. (Post judgment transfers are especially worrisome..it can be argued that you knew you were going to have to pay the piper so you transferred an asset to keep it from your creditor)

[djvice]

I see what you guys mean...
But what if the vehicle was transferred 2 months before they stopped paying their credit card, or $600/mo car. This is definitely before any repo, auction sale, lawsuit, judgment.

[despritfreya]

If the creditor is smart enough (institutional creditors usually are not) the creditor will ask the right questions. If it discovers that you had an asset that the creditor could have taken and you simply gave it away either, with the intent to hinder delay or defraud the creditor or, for less than fair value, the creditor will look to your State's fraudulent transfer statute to recover the item. Most Statutes have a 4 year window.

Des.

[djd]

If the car is paid off they could try and put a lien on it.

If the value of the car is below the state/federal limit, it would be exempt from any property lien, regardless.

[djvice]

SO let me get this straight. Lets say the car is worth $15k with no loans on it (owned outright). The state exemption amount for vehicles is $5000.

They could put a lien on it (say one of those "car title for cash loan")????

Would this make the car untouchable?

[HHM]

You might as well come out and say it, you are asking us how to commit fraud without looking like you are committing fraud. I think you have received all the advice you are going to receive.

In the big picture, does the car matter that much. It is 10 times easier to sell the car (for FMV) and deal with the cash than it is to try and hide the actual vehicle.

[djvice]

The problem is that in September, my friend's mother and I put money together to buy a car. The car was meant for me...I put $3000 and she put $12000....The car was registered in my name alone. The plan was to repay her within 6 months, but I have been unable to make payments. So in December, we ended up just transferring the vehicle into her name, until I could get my finances in order.

I am not trying to commit fraud..I'm trying to protect my friend's mom. It was a vehicle that was supposed to be mine but I couldn't fulfill my obligation with my friend, hence she ended up taking ownership of it.

Of course, the way it looks, it looks as if I transferred my personal car so that creditors couldn't get it.

[djvice]

*bump*

[frogger]

You might as well come out and say it, you are asking us how to commit fraud without looking like you are committing fraud. I think you have received all the advice you are going to receive.

In the big picture, does the car matter that much. It is 10 times easier to sell the car (for FMV) and deal with the cash than it is to try and hide the actual vehicle.

HHM "bumped" this thread all that it needed........

[djvice]

You're also suggesting that she sell the vehicle? If it came down to the debtors interrogatory, wouldn't they ask me, "what did you do with the $15k?"