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A few questions. Car and Income.

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    A few questions. Car and Income.

    This may get a little long. I will be filing in the fall. I keep pushing it back but it needs to be done and I don't want to start another year with this over my head. I'm in SC if it matters.

    I have 2 vehicle questions and a student loan question.

    I currently have a leased vehicle. The lease is up November 1st. I was going to hope for a ride through and just keep paying on it until then so that I wouldn't have to worry about a car at the moment. It will be over mileage by about 2500-3500 so not a huge deal but it could be about $500. The next 6 months of that lease payment could be used elsewhere so I have a couple of questions. It would also put me having to buy a car around Christmas which isn't really ideal if I can avoid it.

    I don't have an attorney yet so I can't really get any legal advice.

    1) Since I am going to file BK and I will not be assuming the lease, does it look any different if I do a voluntary repo now vs letting them take it during/after BK? Does it still show up as a repo either way?

    2) I have a family member that is willing to sell me a paid off vehicle for about $4500. I would make payments. It seems like the best option would be for him to sell me the vehicle and he could put a lien on the title (I already checked with the DMV and this is easy). That way I wouldn't have any issues at the DMV or with insuring it since it would be legally registered in my name. Would making payments to him be an issue with the BK court or would he just be considered a lender? I don't want any preferential payments or anything like that to be triggered. From what I have read it looks like car payments are ok to keep paying. He would rather just give it to me with the title and have me make payments informally but that would look like I had a paid off vehicle in my name though with equity which could be an issue with my exemptions.

    I just checked the exemptions and I can have a motor vehicle up to $5000. This car has a blue book value of 4500-7000 depending on whether it is trade in, retail, or private party. Not really sure which way they calculate it.

    3) I am a graduate student receiving federal aid. Like most students, the loan amount exceeds my need. In the past I have typically used some of the overage for books and then returned the additional to keep my total loan amount as low as possible. Last semester I kept the balance and I am planning on doing that again this semester. I will resume my more responsible ways with the overage next Spring. The check will be for around $6000.

    I plan to use about $1500-2000 for the attorney, $500 for books, and probably put the remainder towards paying off the car in question 2 (after the BK is finished). Is this money counted as income? I have a son and am the custodial parent. We have a 50% visitation agreement and alternate claiming him each tax year (I will claim him for 2010). I'm still a little concerned with whether or not he will be included in my household calculation (since I couldn't claim him for 2009, I was able to claim head of household with him as a qualifying child). If he is then my income is fine even with the added $6000 (or 12,000). If I cannot count him then my income is fine without the $6000 but would be over with it.

    Since I have no homestead, my cash exemption is $5000. I'm pretty sure I'll be just under that amount once I pay the attorney so I'm not too worried about that.

    Thanks for reading

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