If your wife is filing bankruptcy, she'll have to include the car. However, once the bankruptcy is filed, she can reaffirm the debt (loan) and continue paying the car note as usual. Your attorney will fill out the re-affirmation paperwork and present it to the court in the form of a motion.
My son-in-law paid CASH for the car, their is no lien! They only put my wife on the car title to save on insurance. Does she have to declare it in the bankruptcy? And if she does is their a chance they could take the car even though my son-in-laws name is XXXXX XXXXX? Again, he paid cash (paid it off) for the car 2 years ago.
She will have to show the car as an asset. However, because the car is not 100% hers, only her interest (1/2) could be attached. As a practical matter, no one wants a 1/2 interest in a car and it is virtually worthless to anyone but her.
The property of the non-filing bankrupt party (son-in-law) cannot be included in the bankruptcy.
In short, no creditor is going to want her interest as it is not valuable - thus, they'll likely release any claim against the car and take it out of her property schedules. However, it still must be mentioned initially.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).