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 WALLSTREETFIGHTER Your Own Question

WALLSTREETFIGHTER
WALLSTREETFIGHTER, Attorney
Category: Legal
Satisfied Customers: 15592
Experience:  14 years experience in representing clients, current member of legalshield, legal club of america, NYSUT and UFT attorney
Type Your Legal Question Here...
WALLSTREETFIGHTER is online now
A new question is answered every 9 seconds

Daughter is in the middle of divorce and chapter 7 filing.

Resolved Question:

Daughter is in the middle of divorce and chapter 7 filing. We are selling her a vehicle How (owes $9500, value about $12000 KBB) We are in Pennsylvania.
My insurance will not allow her stay on my insurance any longer. she needs a vehicle to
get to work/children. If I transfer the car into her name so she can get her own ins., what documentation do I need to protect the vehicle against the Chapter 7? How do I retain ownership of the vehicle until the loan amt is paid in full?
Submitted: 12 months ago.
Category: Legal
Expert:  WALLSTREETFIGHTER replied 12 months ago.

WALLSTREETLAW :

Hello I am a licensed attorney. I am here to help answer your questions. Please do not hesitate to ask for clarification

WALLSTREETLAW :

She has filed a PA bankruptcy?

Customer:

Yes in the process.The paperwork has been handed in several times, time lapses and they ask for more income info.

WALLSTREETLAW :

Pennsylvania allows you to choose between the state exemptions or the federal bankruptcy exemptions. If you decide to use the Federal bankruptcy exemptions you can exempt up to $3,450 of equity in your car.

WALLSTREETLAW :

So if you gift her the car,

WALLSTREETLAW :

the equity in the vehicle would be exempt if she used the full federal exemptions,

WALLSTREETLAW :

You can also put her name on the car, and place a security lien for the full amount

WALLSTREETLAW :

that would reduce the equity in the car as well,

Customer:

Are you saying to put the car in her name and mine and then also place the lien on it ? Can I put the car in her name and

Customer:

Because this is really an insurance issue, which is compounded by the bankruptcy, can the car be put in her name

WALLSTREETLAW :

yes,

WALLSTREETLAW :

if the equity is limited, and can be exempted,

WALLSTREETLAW :

you can just have her name on the car

Customer:

and the friend whose insurance it will be carried under. Can I then put the lien on it also?

WALLSTREETLAW :

yes,

WALLSTREETLAW :

if you place a lien, it would not be considered a gift, and you should have a written agreement such as a promissory note, stating the loan payments,

Customer:

Wouldn't this then be considered a sale, and subject to sales tax? The kid is just squeaking by now. She can't come up with a few hundred dollars to pay sales taxes. Or would be be considered a transfer between relatives?

WALLSTREETLAW :

It would be a sale, if you want to gift it to her, you should not have a secured lien,

WALLSTREETLAW :

In this situation, I would add her name to the title,

WALLSTREETLAW :

and if the equity in the car is less than the federal exemption, she can keep the car.

Customer:

So can I gift her the car and put it into her name and mine, therefore retaining ownership so to speak?

WALLSTREETLAW :

yes,

WALLSTREETLAW :

the bankruptcy court will let her keep it, if their is limited equity that is the main issue,

WALLSTREETLAW :

the car must have less than $3450 in equity,

WALLSTREETLAW :

if you have any further questions please do not hesitate to ask

Customer:

Okay, just one thing yet to clarify. If the title is in 2 names, my daughter would only have 50% ownership, if car value is $12000/$6000 would be her portion, she still owes $9500 on it therefore has no equity in the vehicle at this time.

WALLSTREETLAW :

yes,

WALLSTREETLAW :

that is possible,

WALLSTREETLAW :

however if she is on title,

WALLSTREETLAW :

with you

WALLSTREETLAW :

it is better to state the value of the car is $12,000

WALLSTREETLAW :

with $9500 in equity,

WALLSTREETLAW :

that still leaves the car exempt

WALLSTREETLAW :

The bankruptcy trustee may feel this is an outright gift,

WALLSTREETLAW :

so the exemption should be used,

Customer:

We should then also have the promissory note to show that there is still money owned on it?

WALLSTREETLAW :

yes,

WALLSTREETLAW :

and a letter from you stating she is paying the loan payments

Customer:

Okay thank you so much for the information.

WALLSTREETLAW :

good luck, and make sure you use the federal exemptions for the car

WALLSTREETLAW :

if satisfied with our service please provide us with positive feedback thank you

WALLSTREETFIGHTER, Attorney
Category: Legal
Satisfied Customers: 15592
Experience: 14 years experience in representing clients, current member of legalshield, legal club of america, NYSUT and UFT attorney
WALLSTREETFIGHTER and 5 other Legal Specialists are ready to help you
Expert:  WALLSTREETFIGHTER replied 12 months ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

What happens now?

If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it. Lee Michigan
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Counselor at Law

    Satisfied Customers:

    19941
    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    8189
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/jespoag/2008-12-17_222355_jessepic.jpg JPEsq's Avatar

    JPEsq

    Attorney

    Satisfied Customers:

    2132
    Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor
  • http://ww2.justanswer.com/uploads/gsenmartin/2008-04-22_214950_me1.jpg Guillermo J. Senmartin, Esq.'s Avatar

    Guillermo J. Senmartin, Esq.

    Attorney

    Satisfied Customers:

    110
    7+ years of experience handling various legal matters.
  • http://ww2.justanswer.com/uploads/PA/PaulmoJD/2013-10-10_195858_JAImage.64x64.jpg Law Educator, Esq.'s Avatar

    Law Educator, Esq.

    Attorney

    Satisfied Customers:

    31621
    JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    15975
    Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.