Taking over car payments?

[sassiebaz]

If we are filing ch13 and giving back one vehicle, but keeping another, would there be a problem taking over a relative's car and the payments? We would have to register it in our names and insure it of course. I called my attorney to ask but couldn't reach him.....

[optimistic1]

If it turns out you cant do that, then.

If I was you, and this may or may not be illegal.

What if instead of taking over payments, you just give the money to them to pay.

Then, instead of registering it in your name, just have them add you on their insurance policy as a rated driver, and pay the insurance through them too.

Just an idea.

[woeisme]

Never a good idea to do something that could be interpreted "hiding assets" from the BK trustee, which is what having a car registered in someone else's name would be. Also, you never know someone else's situation, what if they ended up with financial problems and had to file BK? The car would then be part of their estate, whether you'd paid them for it or not. I've read on here numerous postings of people who had things that "belonged" to other people but that were in their names, wanting to know what happens if they file BK, and what happens is that the legally registered owner is who the BK court says owns the vehicle, regardless of why their name is on it. trying to be sneaky always ends up coming back to haunt you, in my opinion...

[optimistic1]

Never a good idea to do something that could be interpreted "hiding assets" from the BK trustee, which is what having a car registered in someone else's name would be.

Yet again, another person on here attacking others ideas instead of actually answering the original question.

She doesn't own the car, how is it an asset? Until it is registered in her name would she be the sole owner, and she would have to own the title as well.

She doesn't "have" a car, she is "using" the car because she needs it.

Sassie, you would probably be totally allowed to do it, but you would need to get the loan put into your name is my guess.

It wouldn't be any different than just going out and financing a new car before you file a Chapter 13 or 7.

It would also help you claim more allowances on the means test and make you pay out less to the unsecured portion of your debt.

But I might be wrong, so make sure you consult with your attorney, and if he doesnt answer the phone, fire him, its your life and your money.

[sassiebaz]

First off, how could I hide an asset that isn't mine? My relative is paying on the car to the lien holder. It's not like I'd be qualifying to purchase the car. I called my ins. agent and she said the same thing about just adding the car and owner to our ins. policy. I've actually done that before in the past...added a driver to our policy. Don't see any harm in that!

[HHM]

There is some case law that says that if you don't own it, you don't get to take the ownership expense.

However, so long as you are actually driving the vehicle, and do the proper paper work (basically, this would be like a Lease-Option), you might be all right.

[optimistic1]

Right Sassie, I dont see anything wrong with just using the car, you dont own it.

But HHM is right, you wont be able to get the ownership expense on the means test, or on schedule J.

[silva]

I've read on here numerous postings of people who had things that "belonged" to other people but that were in their names, wanting to know what happens if they file BK, and what happens is that the legally registered owner is who the BK court says owns the vehicle, regardless of why their name is on it.

http://www.carleasedepot.com/shortcar_lease.php