Better to "gift" your car or sell car before filing BK...

[Beeheery]

Is it considered a transfer of assets if you give a car to a non-family member? Does it matter whether they paid you or not? Does it make a difference at all as far as how long you must wait to file before doing so? Thanks so much

[HHM]

No difference, giving away an asset in anticipation fo BK is still problematic. The trustee can still undue the transfer.

[Beeheery]

but what if the person isnt filing for 1-2 years AFTER the sale of the car. Is it safe then?

[GreenInkOnPaper]

Sell it at market value, and you'll be fine. Sell an Escalade for a hundred bucks, big trouble.

[fltoo]

Wow, lots of transferring of assets going on here lately.

You can sell anything to anyone at any time as long as it is for market value and you spend it on living expenses and keep receipts just in case.

You cannot give or sell an asset under market value within two years of filing because it can be deemed "hiding" assets and fraudulent.

[Beeheery]

oooh.......OK thank you. i thought you could give it away or sell it for like $1.00 as long as it was a long while before you filed. thank god for these boards! thank you!

[Beeheery]

Sorry...one last question. Is Fair Market Value considered "Trade-In" or "Private Party" or "Dealership" value? Sorry I am such a dunce.

[fltoo]

Actually the market value of anything is what an "able, willing and qualified buyer" will pay for an item on the open market.

The price for the car would be determined by the private buyer price since the dealer or trade in is "outside" the open market if he is trying to sell you another car.

Bring the car to a CarMax kind of place to establish market price since they will outright buy the car from you priced without the incentive of having you buy another car.

[relief13035]

Can we receive a gift like a vehicle?

[Beeheery]

Thanks FLtoo! Thank you to everyone who helped. Now...if the car is sold for the approximate value that CarMax or another place would pay, how must it be paid for to show proof you sold it for the amount so it isnt seen as fraud. Can it be paid with cash even though it is not traceable? Is a simple hand writen receipt enough or must you show a check written/cashed for that amount? Thank you.

[fltoo]

You can receive any gift, but it becomes a part of your assets. If it is not exempted, it becomes a gift to the trustee.

[relief13035]

So should I wait until after I am closed to receive this gift?

[fltoo]

Thanks FLtoo! Thank you to everyone who helped. Now...if the car is sold for the approximate value that CarMax or another place would pay, how must it be paid for to show proof you sold it for the amount so it isnt seen as fraud. Can it be paid with cash even though it is not traceable? Is a simple hand writen receipt enough or must you show a check written/cashed for that amount? Thank you.

I don't know about the cash thing. I know, if it were me, I would get a check, deposit it, keep copies of the check and bank deposit and then keep receipts for everything I bought with the money.

But, that's me, and I am anal retentive. lol

[Beeheery]

lol relief....you and i are pretty much the same with the same questions. its sooo confusing. its just confusing when it is "ok" to have assets after being discharged so the damn trustees dont try to take them from us. sooo stressful! argh!

[relief13035]

Never in my life have I been "nervous" to receive a gift. My parents want to give to me something of value. If there is the slightest chance that the trustee would take it from me I will wait. How long should you wait though???