acquiring property after discharge within 180 day post-filing period

[calacedra13]

i thinking about buying a trailer with my 401K money with the intention to live in it as my primary residence, after my chapter 7 discharge is finalized. Will the trustee be able to seize this within the 180 day period after filing? it will have equity in it since I will be paying for it with cash.

thankyou for any feedback
calacedra13

[justbroke]

No. The only property that falls within the Bankruptcy Estate are inheritances and property received in a dissipation of marriage... and only for the 180 days following the filing of the petition. (Also, you only need to become entitled to receive the property, so you don't have to actually have acquired it.)

Anything that happens post-petition (outside of what I listed above), is not property of the estate. This means that even a lottery winning of millions is not property of the estate.

[free42]

So, just to clarify, does this mean if I accept a car as a gift now (I just completed my 341 today) it can't be taken by the trustee or affect my discharge?

[justbroke]

So, just to clarify, does this mean if I accept a car as a gift now (I just completed my 341 today) it can't be taken by the trustee or affect my discharge?

Absolutely not. However, why not just use the vehicle for now and have the title gifted to you after the discharge. There is really no issue, but it's always good to put "distance" (in time) between property transfers. We don't want the Trustee think that you actually received the gift before the filing of the petition!

I will say again, though, that technically, you could even win the lottery the day after filing! Those winning could not be included in the bankruptcy at all.

[despritfreya]

JB,

I just responded to OP on another forum. Why do you think that a gift of a vehicle post petition (pre discharge) to OP would have any impact on the case? You mentioned the effect of after acquired property when you referred to 541(a)(5). If I were to file bk on day one and on day 10 my parents purchased a vehicle and gave it to me as a gift, title and all, that gift would not benefit the bk estate or the Trustee in any way as it is not included under 541(a)(5). Now, if we were talking about someone gifting $100k which could be deemed a sufficient change in circumstances to allow 707(b)(3) to kick in (doubtful but possible), then maybe I would recommend holding off on the gift until the case is closed. But not for a vehicle.

Just MHO.

Des.

[justbroke]

I didn't mean to say that Des, if I did. I perfectly agree with you on this topic that property acquired after filing is not property of the Estate. (Look up to my June 26, 2010 post.)

Perhaps my saying that somehow -- in some strange way -- the Trustee finds the vehicle titled and is questioning the date. (Of course, the date on the title would be post-petition.) In the end, I think we both agree that it's not property of the Estate anyhow, so it doesn't matter at all.

[despritfreya]

I didn't mean to say that Des, if I did. . .

Ok, my bad. . . must have just misunderstood.

Des.

[free42]

Thank you both for your clarity on this. I now will feel confident driving this car and not worrying that it will be taken away by the trustee or screw up my discharge. It will be nice to put my kids in a safe car.

Many thanks!

[free42]

OK, here's a twist. I just looked at the title to the car, that I have been holding on to since I haven't known how to handle this situation. My petition papers were filed September 14, and the title transfer to me is dated Sept 5. Is this an issue?

[LadyInTheRed]

Yes, it's an issue. It's an asset that should have been listed on your petition.

[mountanddo]

OK, here's a twist. I just looked at the title to the car, that I have been holding on to since I haven't known how to handle this situation. My petition papers were filed September 14, and the title transfer to me is dated Sept 5. Is this an issue?

I'm confused as to why you would accept a $30,000 car before you even filed. I haven't transfered a car in years but don't you have to go to the DMV to transfer a car into your name? Did you do that or did they just sign the title over to you and you haven't gone to the DMV yet? Either way September 5th is the date on the title and I don't think you can just white that out. I hope someone can respond with a remedy for you as it would be a shame to lose that due to bad timing.

[despritfreya]

I just looked at the title to the car, that I have been holding on to since I haven't known how to handle this situation. My petition papers were filed September 14, and the title transfer to me is dated Sept 5. Is this an issue?

As LadyInTheRed pointed out, yes it is an issue. If it was not listed on Schedule B you need to amend Schedule B and claim whatever exemption you may be entitled to. If this vehicle has value over the exemption the Trustee can take it.

Des.

[despritfreya]

I hope someone can respond with a remedy for you as it would be a shame to lose that due to bad timing.

Yes - a remedy if an exemption won't cover it. Either work a deal to pay the Trustee the difference, getting him/her to agree not to sell it to the highest bidder or convert to a 13 and pay the non exempt value over the life of the Plan.

Des.

[mountanddo]

Yes - a remedy if an exemption won't cover it. Either work a deal to pay the Trustee the difference, getting him/her to agree not to sell it to the highest bidder or convert to a 13 and pay the non exempt value over the life of the Plan.

Des.

Wow is all I can say. This should be a lesson to everyone to make sure that you do your research and then do it again before you file. One bad decision can change everything. I can't imagine that an exemption covers 30k for a car in any state.

[ValleYum]

I am intrigued as to why all of free42's posts specifically asked about acquiring the car after filing and/or 341 and suddenly it has been his since 10 days before he filed.

Colorado's vehicle exemption is only 5k unless free42 is age 60 or older then it is 10k. No wild card exemptions in Colorado either. Yikes.