How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37804
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
Type Your Bankruptcy Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

i purchased a motorcycle from my stepfather 7 years ago, but

Resolved Question:

i purchased a motorcycle from my stepfather 7 years ago, but kept it in his name for reduced insurance he is filling bankruptcy.what are my options, i dont want to loose my bike. i live in florida
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 6 years ago.

You could ask the bankruptcy court to exclude the bike from the bankruptcy on a theory called "resulting trust," which means that your stepfather was holding the bike in trust for you, and the formal requirements of the trust were never created, therefore the trust fails, and the bike "results" back to you.


That's the "ivory tower" solution. The problem with it is that unless the bike is very valuable, the cost of your hiring a lawyer to represent you and plead this theory, may cost more than the bike.


Another alternative would be for you to enter into a new installment sales contract with your stepfather now, for a price aproximately 70% of fair market value. Then you would make payments based on the contract, and when he files bankruptcy, those payments would belong to the bankruptcy trustee.


In effect you would be buying the bike a second time. But, since vehicles generally go down in value over time, your debt may be a lot more reasonable now, than it would have been originally.


This may seem silly, but the cost of a lawyer will probably be more than repurchasing the bike.


Or, you can just let the bike go and move on.


Hope this helps.


Terms and Conditions: By your continuing in this conversation with me, or by your clicking “Accept”, you are expressly agreeing to all of the following: (1) our communication is for entertainment purposes only; (2) you are not consulting me in my professional capacity as an attorney; (3) you do not seek to establish an attorney-client relationship with me, nor do I with you; (4) you will not rely on anything I say and you will obtain appropriate legal counsel via a traditional/office consultation with an attorney licensed to practice in the jurisdiction where your legal issue arises (and you may not use our communication to avoid taxpayer penalties imposed by the U.S. Dept. of Treasury); (5) by communicating with me in this public forum you are irrevocably waiving any right to privacy, confidentiality and attorney-client privilege concerning the matters discussed. You further separately declare that any payment made by you is not consideration for this contract, nor offered for any services rendered by me on your behalf, but rather is made in genuine admiration and respect for my desire to help others. If you do not agree with these terms and conditions, then you must advise me immediately.

socrateaser and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.
im sorry i forgot to tell you he hasntfilled yet but will be soon
Expert:  socrateaser replied 6 years ago.
Once he files, the only option that will be available is the resulting trust option. So, if you plan to try something else, then do it now.

Related Bankruptcy Law Questions