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My wife put her fathers car in her name becuase he did not have a liscence. Now he has a lisence and wants to put the title back in his name. Will the bankruptcy courts look at this as fraud? We don't drive his car, and his wife and him have a pending case with immigration and didn't want to get pulled over too often. My wife and I have two working cars and one busted car under my name. Will they come after her fathers car if we file chapter 7?
Response: If your wife puts the title of the car back to the father and then files for bankruptcy protection, the change will be considered a fraudulent transfer and attempt to hinder and delay and frustrate the claims of her creditors. The Chapter 7 bankruptcy trustee is authorized to avoid the transfer to take the car back from her father. Pursuant to 11 U.S.C. Section 548 subsections (a) and (e) a bankruptcy trustee can void fraudulent transfers made within 2 years prior to bankruptcy filing and in some instances within 10 years prior to bankruptcy filing if transfer was made to a trust.
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