I am planning for filling BK in about 6 months to a year. I am filling single, I own 2 cars in my name only and my wife has a car in her name only. I am under the impression that in Kansas, I am able to exempt 2 cars, but not 3. Out of the 2 cars that are in my name, one is driven by my son, the other by me. My question is, should I sell the car to him or keep them both in my name? The car that he drives is worth about $1000, if that, has over 200K miles on it. Thank you.
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I would not sell it to your son, that would be considered a preferential payment since he is an insider. They look at insider transactions over the year before you file.
Unless it has changed:
Kansas Statutes Annotated 60-2304(c) allows motor vehicle up to 20,000 value (unlimited if it is equipped for disabled person).
Your best bet might be to check with some local bk lawyers and confirm that though.May 31st, 2007: Petition Filed by my lawyer
July 2nd, 2007: 341 Meeting Held
September 4th, 2007: Discharged and Closed. -
Here are a few threads that discuss selling assets before filing......
Bankruptcy History:
Chapter 7 filed - 10/12/2005 - Asset
Discharged - 02/16/2006
Case Closed - 11/08/2007
A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain
All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.Comment
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Absolutely do not sell it to your son. Checking with an attorney would probably be your best bet, they would know how your state and district handle extra vehicles. I honestly wouldn't be too concerned about the third vehicle. Being that it is valued that low, and has that much wear on it, it is something that can probably just be included with your personal property. I don't think a vehicle that is valued at maybe $1000 will be worth the trustee's time to seize and try to get enough out of it to pay your creditors. I can't remember if we had 4 or 5 at the time, since it has changed but we exempted all of them plus a travel trailer just because they were all "beaters", "fixer uppers" or just not worth much. So check with an attorney if possible, it could be an issue that you need not even worry about."Try to save money. Someday it may be valuable again." - AnonymousComment
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