I received a car as a gift.............

[cetiya]

Hi everyone, I have been lurking for a year, but have finally paid my lawyer, so I'm ready to ask questions. When I first met my lawyer, I had no car, and had been taking the bus for two years. My friend, who has lots of money, bought me a 1993 ford. they sent me my petition to look over and they ask about a car, and now I have one, but they say in the last year, and I bought the car Oct. 23! and by the time I get the money for the filing fee, it will be at least a month or more. so...do I still have to tell them about the car, and will they believe me when I tell them it was a gift, not something I had the money for. how can I prove it was a gift? thanks and I'm sure I'll have lots more questions as things progress. Cetiya

[nc73]

Hi everyone, I have been lurking for a year, but have finally paid my lawyer, so I'm ready to ask questions. When I first met my lawyer, I had no car, and had been taking the bus for two years. My friend, who has lots of money, bought me a 1993 ford. they sent me my petition to look over and they ask about a car, and now I have one, but they say in the last year, and I bought the car Oct. 23! and by the time I get the money for the filing fee, it will be at least a month or more. so...do I still have to tell them about the car, and will they believe me when I tell them it was a gift, not something I had the money for. how can I prove it was a gift? thanks and I'm sure I'll have lots more questions as things progress. Cetiya

It would be still considered income unless you can get it exempt. Talk to your lawyer. I'm selling my car and it will be income but due to Tx exemptions I'm in the clear.

[lrprn]

Welcome out of lurk mode, cetiya!

...do I still have to tell them about the car, and will they believe me when I tell them it was a gift, not something I had the money for. how can I prove it was a gift?

When you file your bankruptcy and go to your 341 meeting, you will swear under oath that everything in your forms is accurate and truthful. If you say the car was a gift, then the court is going to accept that it is.

Since the car is yours free and clear, depending on the state you live in, if the motor vehicle exemption can't protect the full value of your car, that could open the door to your trustee asking you to pay the difference between the protected exemption level and the car's value. Doubtful this is going to be a problem given the age of your car though.

Ask your lawyer to walk you through this. He/she will be able to explain how everything is going to work in your state.

Good luck! Hope everything works out for you and hope you'll keep asking questions - we'll help you sort things out as much as we can.

nc73 - a physical asset gift like a car is not the same as selling a car for cash. I don't believe this gift will add to cetiya's income for the Means Test, but she needs to check with her lawyer to be certain.

[cetiya]

what about the fact that it will be over a year when I file, and it specified "in the last year"??

[lrprn]

what about the fact that it will be over a year when I file, and it specified "in the last year"??

Cetiya, I'm confused. If a friend bought you a car and gave it to you, a year has passed since then, and it looks like your state exemptions are going to protect it when you file, why do you think your car is still at risk?

What is the "it" that you said specified "in the last year" - one of the bankruptcy forms?

[magyar123]

Don't worry about it. As you mentioned, it's a 1993 Ford - 14 year old car. Blue book value is probably nelow $2000.

[cetiya]

the "it" i'm referring to is in my petition, it asks if you bought a car in the last year. by the time I file it will be past a year. the private party and trade in value are 1,300 and 800, the retail value for excellent condition is 2600. the car is only in fair condition. I'll try not to worry about it and when I get a day off, I'll call the lawyer and see if I have to even mention the car.
I wasnt worry about the car being at risk, but worried about what IRPRN said, "Since the car is yours free and clear, depending on the state you live in, if the motor vehicle exemption can't protect the full value of your car, that could open the door to your trustee asking you to pay the difference between the protected exemption level and the car's value. Doubtful this is going to be a problem given the age of your car though." thanks for everyones advice.