I do not agree with the trustee that your interest in the car is an asset of the bankruptcy estate. There are 2 arguments that the trustee can raise but based upon the information in your post neither argument would prevail. Here the possible positions that the trustee may raise:
1. Fraudulent conveyance.
A quitclaim or transfer of a debtor’s assets to a third party, for less than a reasonably equivalent value in exchange for such transfer, is considered to be a “fraudulent conveyance”. Bankruptcy Code
§548 provides for the avoidance of fraudulent transfers within two years before the bankruptcy filing date.
The trustee would not prevail since the transfer was made more than 2 years before the bankruptcy filing date AND by making the payments on the vehicle you gave a reasonably equivalent value in exchange.
2. Avoidable preference
A transfer of the debtor’s assets to a creditor that results in a creditor receiving more than the creditor would have in a Chapter 7
bankruptcy, is typically considered a “preference". Bankruptcy Code §547 provides for the avoidance of preferential transfers within 90 days before the bankruptcy filing date for third parties.
The trustee would not prevail since the transfer was made more than 90 days ago
I hope that this helps.
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