Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.
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.
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).