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VanDLaw
VanDLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 833
Experience:  Chapter 7 & 13
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My question is this I am going to file a Chapter 7. I am below

Resolved Question:

My question is this: I am going to file a Chapter 7. I am below the means test and have over $40,000 in debts (personal loan and credit card). I just moved to a new state, have a low paying job and purchased a HUD home. I have two cars to my name. One of them is actually my father's car. He is disabled and bought the car through me but it is my name. He uses it. It is a 2007 vehicle that is paid off. Will this get taken during the Chapter 7? I drive a 2001 vehicle. Do I need to list both vehicles in my assets or just the one that I drive and am responsible for? My father does not want anything in his name so I cannot put it in his name. He lives of of disability payments only. I want to be honest in this Chapter 7 but am afraid of losing his car. Do I have to list it or can I list it with an explanation or signed, notarized letter from him? Thank you!
Submitted: 9 years ago.
Category: Bankruptcy Law
Expert:  VanDLaw replied 9 years ago.

HelloCustomer

 

Unfortunately you are going to have to deal with the car in your filing. All assets must be listed or your petition is subject to dismissal, and you are subject to perjury in a Federal Court.

 

If the cars are paid off, and you are the legal owner both cars must be listed and both are subject to liquidation by the Trustee. It doesn't mean it will be attached but it is subject to it. If the car is worth a few thousand dollars they would order the car sold and take the proceeds.

 

In fact, at this point you cannot transfer the car into his name even if you wanted too. A person has to disclose any transfer of property up to one year prior to filing bankruptcy. If you have transfered property they will inquire further and could order the transfer void and bring back the asset into the bankruptcy.

 

The Court does not search your assets typically, although they can request any documentation they deem propert until discharged. They will ask you if you have disclosed all your assets on your schedules, and if you have transfered property in the 341 meeting, you are under oath in Federal Court, so you must be truthful.

VanDLaw and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 9 years ago.
Thank you for your reply. I am going to accept the answer so payment will be made but I was hoping you could clarify one more thing regarding the car: Is there any way for me to let the system know that I do indeed have the car in my name but that it is actually my father's car...so they will not take it and he can keep it? Or is it possible that he is just out of luck because the car is in my name? Thank you.