My brother and his wife have named me and my mom as creditors in their bankruptcy. They borrowed $4,000 about a year ago. When they borrowed the money we signed a hand written agreement that my brothers truck, 4 wheel motorcycle, and 2 wheel motorcycle would be collateral for the loan. We have possesion of the truck but not the pink slip. I need to know how his bankruptcy is going to affect us? Can the court require we give the truck back? Can the court require them to give us the pink slip to the truck, as well as the motorcycles? Would it be worth it for us to attend the Meeting of Creditors?
State/Country relating to question: California
*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*Welcome to JustAnswer,My name isXXXXX shall do whatever I possibly can to provide you with helpful information about the law. Please keep in mind that, although I am an attorney, I am prohibited from giving customers of the site legal advice or forming an attorney-client relationship on this forum. If at any time the information which I provide is not clear to you or does not fully answer your question, please ask me for clarification by using the reply button.If you perfected the lien on the vehicles at the time the loan was made, the lien on the vehicles will continue after the bankruptcy. However if you did not properly lien the vehicles, the debt will be discharged/erased and the trustee will take possession of the vehicles. The trustee will likely want to review all of your paperwork to determine whether to challenge the lienDoes this answer your question?
We did not do a lien because we were trying to give him a chance to pay the loan back. What does the trustee do with the vehicle?
What if we no longer have the vehicle?
Should we go to the meeting of creditors?
I am happy to answer your follow-up questionsWe did not do a lien because we were trying to give him a chance to pay the loan back. What does the trustee do with the vehicle? The trustee will sell the vehicle and distribute the proceeds among the creditorsWhat if we no longer have the vehicle?the trustee may possibly file suit against you Should we go to the meeting of creditors?it may be helpfulI think this is what you wanted to know. Please let me know if I have answered your question
Bankruptcy Lawyer. Experienced.
I did more research on this matter. We live in California, and what I read makes it sound like most, if not all, his property will be considered exempt and he will get to keep the truck. What do you think?
I do not know your brothers financial position or what exemption system he has chosenHere are the exemptions for California:http://www.bankruptcyinformation.com/CA_exemp.htmYou can see that system I allows a $1900 vehicle exemption and system II provides a motor vehicle exemption of $2275
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