Can a Parent be a Creditor?

[cjde]

I am on the verge of having to file bankruptcy. I had several rental properties that have drained me financially. Tenants not paying and vacating property without notice, as well as massive credit card debt from fixing and keeping up the properties. One of my parents bought me a car because I couldn't use my credit. My question is can I put my parent down as a creditor as I make the payments directly to the car company. The car is not in my name but it is my car and I make the payments. I need to keep the car as its my only transportation. I don't want this to affect my parents credit. All of my properties have foreclosed and I have over $50,000 in credit card debt. I need to list the car payment in the bankruptcy as it is my car note. I'm trying to pass the means test. Can I put my parent as a creditor but have this debt reaffirmed in the banckruptcy? Any advice is greatly appreciated.

[AngelinaCat]

Hi cjde: welcome to the forum.

Since what your parent did was essentially a loan, I believe you can list your parent as a creditor. This question was going around a couple of months back. But I don't remember the poster or thread.

Whether you can reaffirm the loan since the car isn't in your name, and whether or not it will effect his or her credit, I can't say.

Have you started thinking about consulting with some BK attorneys? This would be a good question to ask.

Good luck.

[cool33097]

I believe you have to have a agreement with your parents that you will pay them back (like one you sign with the bank), I am not sure.

[AngelinaCat]

This thread I am thinking of had a similar question. The parents of the poster in question had given a monetary gift to the poster trying to help out. This was a gift, but was too large an amount of money and too close to when the poster wanted to file. And it would skew the means test.

The advice was to declare the gift as a 'loan' and list the parents as creditors. That way the 'loan' would not be considered income. And if after the BK, the poster wished to pay the parents back, he/she could.

I wish I could remember the thread and poster.

Good luck.

[cjde]

Thanks AngelinaCat. I'll try to find the thread.