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Trading car with equity..

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    #1

    Trading car with equity..

    Ok, I've asked a question sort of similar to this before but not the exact same. I haven't decided if I'm filing yet or not. IF I do, the only asset I have is a car that my parents bought which is worth probably 8-9k. I have copies of them paying etc.

    So basically what I want to ask is would it be 'fraudulent' if we traded the car in for another car with a loan (parents name). This is the only thing really holding me back from filing now, because I have to have a car, as do many, and I guess you could say i have 8k asset in it since it is titled in my name.

    My law professor(who is a lawyer as well) said that under the new law they can't give advice on in depth asset protection. He kind of hinted that it was one way around the law, but I couldn't get an answer out of him.

    Anyways hope I explained it ok lol sometimes I don't type what I'm trying to get across.

    Thanks

    Ryan
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    #2
    It might not be fraudulent, but it doesn't like a good plan. You're strapped for cash, so you want to take on a car payment?

    A better plan might be to sell it, buy a less expensive (basic, to stay under exemptions) used car and use the additional funds to help cover living expenses. Or, even use that extra money to pay off your debts.
    Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

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      #3
      Well I didn't think about this till after I was lying in bed last night. Even if I trade it in, I'll have equity of whatever the trade in value would be on the new car which I'm sure would be around at least 6-7k dealer trade in.

      I won't be taking on another car payment. The whole issue is my parents paid for the car which is the whole issue, they wanted the car in my name so it's titled in my name as well now. I didn't pay a dime on it. I jus don't know how the trustee would look at that if I were to sell it..at fair market value.

      The only reason I said to take on a car payment is so my parent's won't be out of 9k. So yea I could sell it but it's not really my 9k to put towards debt payment..know what I mean?

      Blehhhhhhhh

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        #4
        all I can say is these car equity issues in bankruptcy really suck

        If you haven't filed yet...you may need to wait another 12 months before you're filing if you're going to fool around with the car issue, i.e. trading out or retitling...?
        Filed Oct 2005discharged February 2007,Shapeless in the fire's glow, tell me if you think you know,
        Who it was we were below, where we've been and where we go

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