automobile trade question...

[pookiebear]

Okay so my husbands credit was not good after he filed bk in 04' he hit a deer an the car was totaled out, he needed a vehicle (this was in 07') I got the truck in my name (it was used) the truck was getting older and had lots of miles on it. (also hubby made all payments) so he traded it. (the trade was made in Oct 2010) will the trustee see this as a fraudulent transfer? I had no intentions of filing Bk until 2 weeks ago when I felt I had no choice. (was being sued by 3rd party and panicked; but if all goes well most likely will be a good thing to start a new) Any info would be awesome. tks. I am filing alone/pro se in Indiana.

TKS in advance,
pookie

[HHM]

Probably not...the key factor is the nature of the trade. If he simply traded it in at a dealership and received another car, not a problem, that is a regular business transaction. If he traded it for magic beans to some guy on a street corner, that would potentially be a problem.

Even though you were on "title", it sounds like your husband used the truck. The law generally recognizes the difference between legal title (who has control of an asset) and equitable title (who receives the benefit and enjoyment of the asset). Generally, equitable title is where the value lies. So the fact that you were on title to the truck, but your husband drove it and later traded it in, is inconsequential to your BK (but for the fact you need to disclose what happened).

[pookiebear]

Tks, It was traded at a dealership. When my hubby was with that company he had to drives long distances. (needed something more reliable)