Fraudulent Conveyance question

[Sleepless.In.NC]

About 2 years 3 month ago, I was just getting behind on CC payments (been unemployed/under-employed for two years as of then). So I in panic I gave my wife my auto ~ value then about $1200, just in case they came to sue me. I didn't know that was the wrong thing to do or that it was aginst the law. But now what do I do. It has been titled to her for over two years now, do I need to revearse the title back to me, and include it in my BK schedules, or what. She is not filing, and all my debts are in my name only.

[krielly]

No worries. Even if the vehicle were STILL worth $1200, it could be exempted by your state's MV exemption. I assume this is the only vehicle? If you are truly in NC (per your screen name) the vehicle exemption will more than cover it.

[Sleepless.In.NC]

No worries. Even if the vehicle were STILL worth $1200, it could be exempted by your state's MV exemption. I assume this is the only vehicle? If you are truly in NC (per your screen name) the vehicle exemption will more than cover it.

Yes it is my only vehicle, but how do I take care of the fraudulent conveyance. Or are you saying that there is no fraudulent conveyance because of NC's MV exemption???

[HHM]

No, that is not what krielly is saying. You still are in technical violation, but because the value of the vehicle is so low and falls within the NC exemption for automobiles, there is no harm to creditors.

[SUB]

Still in violation after over 2 years?

[Sleepless.In.NC]

No, that is not what krielly is saying. You still are in technical violation, but because the value of the vehicle is so low and falls within the NC exemption for automobiles, there is no harm to creditors.

So do I need to Reverse the title back to me, and include it in my BK schedules, or what.

[HHM]

As was pointed out, this conveyance was 2+ years ago, I don't think you need to do anything.

[FreshLikeADaisy]

Sleepless, if it were less than two years old (the current lookback period in Form 7) you could list it in your schedules and exempt it, even if you titled it to the wife. You would have your atty make a side note or continuation page that explains it. As I said though, the Statement of Financial Affairs (Form 7) will ask specifically about property transfers you have made and when (see question 10) so you would explain it there as well.

But I agree with everyone above, you won't have any problems: it's over two years old and you need not mention it at all. There's no guarantee the trustee won't ask, but you don't have to state it up front. And if he does ask, not a big deal, your exemptions would easily cover the value of the car and you can provide a copy of the car title to your trustee which will show the date of transfer. Good luck!!!