Can I keep my car?

[kjb131313]

Hi everyone! So glad I found this forum. I am declaring Chapter 7 but had a question. I have a 2006 Honda Accord 4 door SE. My mom bought it for me in 2006 and paid for it in full so I own it outright. Out of respect, I put her on title in 2006 along with myself. The car is in excellent condition but does have high mileage at 130,000. My lawyer says he will do his best to try to keep it. I live in Florida. I have no other assets. I am also including my condo in the bankruptcy. The lawyer said he will argue the car has high mileage and does not run great....which is not the truth. It looks and runs great. I worry that the trustee may ask for an appraisal. If that happens, I know they will find out that it is really in good shape. I was thinking about trading in the car and getting a new one soon. I would make payments on this one and put it solely in my mom's name. What do you all think? Good idea? Do you think they may try to take my car? Thanks for any and all help.

[keepmine]

I'd not involve others in your financial problems.
Your bk trustee is gonna have a lot of questions as to why you're making a car payment on a car you don't own.
Two choices here. File the bk as is and see what happens. If the trustee feels you have excess equity in the car you can negotiate a buyback.
Or, sell the car and finance a new ride but, title it in your name. Be sure your downpayment is below the amount of equity your state exempts.
While the car may be running great now-130K miles on a soon to be 6 year old car is a lot. It may not be too long before you do need a new ride.

[kjb131313]

Thanks for your help. I just thought that I would put the car in my mom's name and give her the money monthly for payment. I would not even be associated with the new car. I didn't think they could take a car if it was in two names. My 2006 Accord has both our names on title since 2006. I love having a car that is paid for right now but I get worried that they can take it. Putting a new car in my mom's name and saying that I don't have a car at all doesn't sound so bad, does it?

[keepmine]

Thanks for your help. I just thought that I would put the car in my mom's name and give her the money monthly for payment. I would not even be associated with the new car. I didn't think they could take a car if it was in two names. My 2006 Accord has both our names on title since 2006. I love having a car that is paid for right now but I get worried that they can take it. Putting a new car in my mom's name and saying that I don't have a car at all doesn't sound so bad, does it?

You do that and you're going learn more than you ever wanted to know about payments to insiders and, bk fraud.
I'll repeat Keepmine's rule #1. Don't involve others in your bk.

[BAR]

First check the nada.com website and see what the car is worth. (use the average trade in value) Then check your states exemptions and see how much you can exempt. I would take the car out of your mothers name and only have you on the title. Yes they can take it even if someone elses name is on the title. If it has a high value you can do a buy back on it.