Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
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Bankruptcy is primarily based on federal law, so most of the procedural rules are the same in every state. That said, IF the owners are planning on filing bankruptcy or have filed bankruptcy and transferred this vehicle to their son as a gift (meaning that the son gave no value/not the fair market value), then the bankruptcy trustee can claim that this was a preferential transfer or an attempt to shield the property from bankruptcy, cancel the transaction and take the car back.
That would leave you with no car and the obligation to go after their son/seller for the money you paid....and who knows how that may turn out.
Generally, any transfer of property within 1 year of filing bankruptcy is subject to review by the bankruptcy court and/or trustee....and any transfers of property for no money or gifts to relatives are going to be flagged. Here's a good link you can read: http://www.nolo.com/legal-encyclopedia/i-transferred-property-name-should-i-wait-file-bankruptcy.html
Thus, it's not likely a good idea to buy this vehicle unless you have something in writing from the bankruptcy trustee agreeing to the transaction.
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