Chapter 7 Had to junk a car

[MeLLE159]

I had to junk a car that I owned because I had no where to keep it anymore. Engine was blown so it was of no use to me. I know there is a question about transferring property at 341, do you guys an girls believe it will cause me a problem? It was either get it towed or get rid of it! I received like 150.00 for it that was used for food an bills. I don't forsee it being a problem just wanted more insight.

[newbie2]

Not a problem. Just save everything involved with the transaction (receipt from the junk yard, etc).

[Toby629]

We just filed our Chapter 7 yesterday, I was driving an old car which died in September. Called a tow company that would tow away and pay us $250 for it. They came and hauled it away, paid $250 cash and gave us a receipt. No problem with this as we had all the paperwork for the transaction, I even went out and bought another car to replace, just make copies of all transaction receipts and should be no problem.

[MeLLE159]

Thanks for the replies my only issue is I don't have the receipt for it. The vehicle was stranded in a city an hour away at my brothers house for over a year. One of the windows was broken an then they didn't cover it up so the elements of rain, snow got into the car. So I know it wasn't something I would have brought back here. Then earlier this year he told me he had to move an he needed me to get the car. So I had him call around an when he found someone to take it I mailed him the title with my signature and that was that. I'm going to talk to my attorney tomm since that is when I'm filing I hope it doesn't cause a problem. Like I said the car was in terrible condition.

[MSbklawyer]

I had to junk a car that I owned because I had no where to keep it anymore. Engine was blown so it was of no use to me. I know there is a question about transferring property at 341, do you guys an girls believe it will cause me a problem? It was either get it towed or get rid of it! I received like 150.00 for it that was used for food an bills. I don't forsee it being a problem just wanted more insight.

There's no per se problem with property transfers prior to bankruptcy. The reason though, that transfers, gifts and sales on the eve of bankruptcy are scrutinized is that people get the idea to transfer their property to relatives or friends or insiders for less than fair-market value. For instance, if the debtor owns some land worth $50K that he can't exempt and he doesn't want his creditors to get it, he sells it to his mama for $1. The understanding being, of course, that Mama is going to sell it back to him for $1 after his discharge. That's a problem. But if he sells the same identical piece of land to his mama for $50K, that's generally not a problem. Because now he has the cash that creditors can pursue just as they could have pursued the land before he sold it.

[MeLLE159]

That makes sense....thanks for the info....

[Toby629]

Just explain it to your attorney, your situation should be no problem, they are just trying to catch out and out fraud, by people transferring valuable assets before filing BK.

[tcreegan]

Hi meLLE159,

On top of everything, $150 is chicken feed in a BK, definitely not a problem. If asked, tell what happened.

Hope your 341 goes smooth as silk...

Tom in Colo

[jshinault]

So, I have a situation where I see on PACER that we have 'no distribution' entered by the trustee. I have a truck that is leaking oil all over the place. My uncle wants it for parts. If I gift it to him and transfer the title, will he have issues getting a new title if we are still 30 days from discharge? Like I said, the truck was listed as worth maybe $300.00 on our paperwork and the trustee obviously didn't care about it.