I am lien holder on son's car and have a question ...

[Kansas1960]

Hello everyone. I have been reading for a few weeks and just joined since I have a question I cannot find an answer to anywhere else. I helped my 18 year old son buy a car few years ago. He paid cash for the car with his savings but was little short so I loand him the rest. He paid me back about a year ago. There was no contract. The car is in his name only and I am the lien holder. I did this to make sure he paid me back. He paid me back about a year ago. I never got around to relase the lien. Is there going to be any problem with this if I release the lien prior to filing chapter 7? Would it be better to not release the lein to avoid any questions about transfer of assets? Do I need to wait a certian amount of time after the lien release? I do not want him to know I may be filing either. Second question, is there any risk giving information here? Could any information here be obtained by a trustee? Thanks in advance for the information.

[justbroke]

I never got around to relase the lien. Is there going to be any problem with this if I release the lien prior to filing chapter 7?

Will be no problem. There are many times where liens aren't immediately released. The Court and Trustee aren't worried that you hold a lien... they worry if you have income coming from that venture.

Would it be better to not release the lein to avoid any questions about transfer of assets?

You didn't transfer an asset. It was never "yours". You only held a lien against it. Since it was titled in your son's name, that means that it was/is your son's, not yours!

Do I need to wait a certian amount of time after the lien release? I do not want him to know I may be filing either.

Nope. You're okay. However, I'd release the lien before filing. Otherwise, you may have to ask permission and the Trustee may want to know what "value" is left in that contract. But don't worry about any of that. If he paid you off a year ago, just go release the lien effective the date of payoff!

Second question, is there any risk giving information here? Could any information here be obtained by a trustee? Thanks in advance for the information.

There are rumors that there are lurkers... LOL... however, you just need not use any personal information. For example, never use your real name, your Trustee's name, case number, etc.

To be extra careful, don't mention what District you filed in either.

[JRScott]

As a public forum there is always a danger that a trustee could see it, however most are so busy they don't have time to check forums like this .

On the lien question I'm not sure what to tell you. If you have copies of bank statements etc that can prove that you did receive payment back then it might be okay to release the lien now. If all payments was done in cash with no paper trail it might be harder.

This is probably something you should ask your lawyer. It's not a situation I've seen come up here in the last little while I've been around

Keep in mind if the Trustee does a title search for you he may well discover the lien. Which means he could possibly require your son to pay it again if there is no evidence it was paid.