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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I am unemployed, have no benefits, looking for work, had a

Customer Question

I am unemployed, have no benefits, looking for work, had a medical event Dec 2009, now have approx $80,000 in medical bills, not behind on any other bills, no equity in home. But, my car is titled to me, NADA about $17,000 ( '07 Toyota Camry SE). My sister bought it for me one week after I was out of the hospital and did not know I would be in such debt at the time. I cannot lose my car if I file BK Chapt. 7 but the exemption and wildcard leave me with about $9-10k the trustee can force me to sell my car for. Is there a way in NC I can avoid losing my car, is there a period of l"ook back" time during which I can transfer title, hold off the debtor's till it expires and then file? This is my only issue and yet extremely important. I don't even live near any public transportation. Currently interning for a job one hour commute away and cannot lose my vehicle. I have excellent credit. Do you need more info? Thank you very much, Diane
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.

A 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. Transfers to self settled trusts and similar devices are subject to a longer avoidance reach back (10 years).

That Said, you can consider filing a chapter 7 bankruptcy and purchasing the trustee's interest in your vehicle. This would mean that you would have to pay the trustee the amount that your vehicle is over exemption in order to keep the vehicle.