Car Question

[tadbitconfused]

We haven't filed yet but our credit is shot. We are losing two of our cars one already has been reposessed and the other most likely next month. We can't file until October. Ok here is the question, my uncle recently passed away and my aunt wants me to buy her car, she is aware of our situation, and will carry the note anyways. Will the trustee allow this? I will have a contract and make payments of about 300.00 per month for 3 years, my current vehicle is 600 a month for 5 years.

[Blue_Ray]

As long as the debt is not in your name or credit report, I would not tell MR. Trustee NADA and have your aunt keep the note while you make the payments. That way your still rolling a car around town. I say go for it!

[SinkingFast]

If you go above board,............. Have Aunt register a lien against the Title and the whole 9 yards,........... And you disclose the loan in your BK, you're gonna risk 2 things.

The Trustee can invalidate the lien, take the Title, and seize the car to sell outright. PLUS, the Trustee can go back against Aunt for all the monies you'll pay her in these months leading up to filing BK.

All you have to do is look at Amislander's numerous posts about her 4 Runner. Amis' Mom filed a valid lien on Amis' Title a full 10 months prior to Amis filing BK. Amis wasn't even thinking about filing when Amis bought the 4 Runner and Mom helped her finance it. But the Trustee took a long hard look at the whole deal anyway.

Amis wound up having to pay a "Settlement" and the fate of her 4 Runner is as yet undecided. Thankfully, Amis wasn't paying Mom any payments, or the Trustee could have gone after that money too.

Is there any way Aunt can let you use the car at least until after you get thru your 341. Then do the deal to purchase the car from her legitimately??

[tadbitconfused]

I am a "tadbitconfused" (to say the least) We can keep the other vehicle that we purchased back in February but I can't buy this car that we need so desperatly. My husband will be taking our only vehicle to work.
I am sorry just a bit dazed today... So the best bet is not to put it in my name and not make payments. We are going chapter 7 and we are close to the border of income wise. We make it just under with the list of bills left so I thought getting this car would help... Dang I wish October would get here...

[DeadManCrawling]

October-are you waiting for the 6 month look-back to file?

Could you ask aunt to hold the car until after your 341?

If you have the money to pay her in the meantime, perhaps you could draw up a "rental agreement" to explain the expense, if needed. Then convert to a purchase plan after the 341.

Also, would the "freeing up" of a net $300 a month put you over the limit? If so, you will need to find a way to expense it away.

I don't know-just random thoughts that might be useful.

best wishes,

-dmc

(quiet day at my office today, so I have more time than I can spend, thus all my rambling posts )

[SinkingFast]

I am a "tadbitconfused" (to say the least) We can keep the other vehicle that we purchased back in February but I can't buy this car that we need so desperatly. My husband will be taking our only vehicle to work.
I am sorry just a bit dazed today... So the best bet is not to put it in my name and not make payments. We are going chapter 7 and we are close to the border of income wise. We make it just under with the list of bills left so I thought getting this car would help... Dang I wish October would get here...

The reason it's sketchy getting this particular car, at best, is because Aunt is an Insider. And the deal is taking place so close to the time you'll be filing BK. The look back period for dealings with/monies paid to Insiders is 1 year.

If you buy a car from a local "Buy Here, Die Here" lot, it probably wouldn't be an issue. You're not related to the shysters at the "rook 'em" car lot.

Maybe if you had bought the car from Aunt a year ago, it might not be a problem. But this close to filing, this deal with Aunt is almost certain to raise a red flag with the Trustee.

[tadbitconfused]

Thanks I understand now... We are waiting the 6 months because I lost my job and with my income it puts me over the median..I will figure something else out... All of you are awesome people...