Vehicle sold prior to ch 7

[davidb81]

I am filing a chapter 7 soon. My question is, I sold a 92 toyota camry 14 months ago to my sister for $2500 I then used the money for a down payment on my vehicle that i am planning to re affirm on. The car however did remain registered to me until april of this year. I have a bill of sale and a copy of the check paid to me 14 months ago I also have a copy of the title that was signed over to my sister. This was not an atempt to protect property. Does this sound ok? If i am upfront with the trustee should I be fine? I would gladly pay them the money for the car rather than they take the car from my sister because it is her only vehicle.

[davidb81]

AHem i must have stumped everyone lol im pretty stumped myself

[robivi3]

Let you Attorney know about this. DO NOT volunteer to pay ANYTHING. The Trustee is not your friend. Try to get a canceled check from your sister or have her request a legal copy from the Bank. Hopefully the check has a reference to the automobile on it.

The Trustee is not stupid and will likely realize that you are being truthful. However, he is out to make money and the appearance of impropriety can be useful to him. You've chosen not to lie to the Trustee, that is smart. But remember, he is out for money, that is his sole motivation.

Hopefully he will regard this in the spirit in which you did it (the late title transfer) and take it no further. An old Auto is probably not worth his time.

if you offer him money, he will take it!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!

[HHM]

Since the transfer was over a year ago, you don't need to list it. But as robivi3 suggests, in case it becomes an issue, have the cancelled check your sister gave you in hand.

[davidb81]

Thanks for the great advice!!!

[davidb81]

Well folks I emailed my attorney about the car and she said it might be a problem or it might not be. that helps! lol my appointment isnt till june 7 and i can understand she doesnt want to give legal advise through e-mail. Do you guys have any ideas what could happen with this situation. could they dismiss my ch7 even though i'm being upfront about the car? or could they make me give that money back? What do you guys think? thanks!

[robivi3]

Roll with it, there is no sense worrying any further. You've been honest, don't make it an issue if the trustee doesn't. Your gonna get grey hair over this issue and it isn't going to vex the Trustee in any way.
I think you are basically an honest person and that's why you are worried. I really doubt that this will be a problem.

Just have as many of your ducks as you can in a row, get what info. you can but please do not worry any more about it. It will work out OK. I aged 326 years in my BK, all for nothing.
Sorry to keep re-editing this, I keep going back to the news as my son just told me that a truck hit one of our trains. Train 1, Truck zero, problem is I know all the crossings where that could happen and it has to be someone I know.

You have to get what you can together and let this go. It will ruin your life between now and your meeting and that shouldn't be (I am preaching to myself also).

[davidb81]

sorry to hear about the accident hope everything is ok. You are right im sure the attorney will have an answer to the vehicle situation worst case ill pay them for it thanks again!

[davidb81]

Well guys, I met with the attorney today and get this, I have to list the car in my bankruptcy but there is a $2500 exemption for automobiles where i live The exact amount that I sold it to my sister for. so my lawyer says that it is exempt. yet she said that i can also re affirm with my auto that i am currently financing because there is no equity in the loan that could be applied towards the $2500 exemption. I just wonder if the trustee will be pissed about my keeping 2 cars, But the lawyer didn't seem to have a problem with it. What do you think?