Motor vehicle considered a joint asset or not?

[limonrod]

My husband has filed Chapter 7, solo, pro-se. He is having to amend Schedule C regarding exemptions, so while he is having to amend schedules, I figure, I'd look through his other schedules as well, and amend any others that need amending all at once.

Here is my dilemma: My Husband has a truck, titled in his sole name, that has a small lien (approx $4,000) and is worth about $10,000, thus leaving about $6,000 of equity. I had originally listed the truck as a joint asset on his Schedule B, and indicated that HIS interest in the current value of the property was $5,000.00 (1/2 of the current value of the truck). My thought process in doing this was that if I were to divorce him tomorrow, even though the truck is in his name alone, that I would be entitled to 1/2 of the equity in his truck as equitable distribution, as it was purchased during our marriage. *** I am not divorcing my hubs, this is just an example. I am a family law paralegal, so I know this to be accurate.

Am I correct in claiming his truck as a joint asset, or should I amend Schedule B and give the entire value to him?

Long story short, we live in FL (been here for about a year), moved from GA, where we lived for 5 years and due to rules on domicile/residency, he can file using Federal Exemptions - this is why he is amending Schedule C as referenced above.

Even if we list the total value and equity in the truck as my hubs' sole interest, he should be ok exemption-wise as that is the only significant asset that he has, and the Federal Exemptions for motor vehicle and wild card are very generous.

We are in the Middle District of FL and the trustee has asked for several documents, among them vehicle registration, so I didn't want to confuse or throw him off when the Trustee sees that the truck registration just has my hubs' name, meanwhile claiming it as a joint asset on Schedule B.

Any thoughts on this?

Thank you in advance for your time!

[AngelinaCat]

My thought is that if the car note is in hubs' name only, then that debt is his only, even though in Georgia, it may be your jointly with the equity.

We are also in Florida Middle District--Jacksonville Court house. When we filed, even though the 2004 VW Jetta is the the 'family car', my 'Hub financed it through his account at his CU. I am a signer on that account, but not a 'member' on that account. So the car note was his only, and we claimed it as such on the paperwork. I had my car, a '93 Pontiac Grand-Am SE, that I bought at an auction, and was titled in my name, and we noted that as such in our paperwork.

I don't know that the above will help you any. What is your Court house? Some parts of Florida Middle tend to be pickier than others....

[justbroke]

In Florida, it usually depends on how the vehicle is titled. If both names appear on the title/registration and it is an "or" then it is 100% owned by either party. If it is an "and", then it is a joint ownership. (For what it's worth, Georgia is not a community property State and you are now in Florida, which is also not a community property State.)

If it were me and it was my bankruptcy, I would exempt it exclusively as my sole property (based on the title/registration).

[LadyInTheRed]

My thought process in doing this was that if I were to divorce him tomorrow, even though the truck is in his name alone, that I would be entitled to 1/2 of the equity in his truck as equitable distribution, as it was purchased during our marriageI am a family law paralegal, so I know this to be accurate.

I think the relevant question is: Who was the legal owner of the truck under state law on the date you filed BK? Since you are not divorced, I don't think what happens in a divorce is relevant.

I'm in a community property state. My husband and I each own a vehicle in our own name. Regardless of how title is held, we each have a 50% interest in each other's vehicle right now. If I had separate debt (incurred before marriage), my creditor could pursue my half of his car (not sure if they could force a sale, but they could get 50% title.). So, if I filed BK today, I would list both on Schedule B as joint property. Your are not in a CP state. Do you currenlty have an interest in your husband's car that your creditor could go after if they got a judgement against you? I think that is what is relevant. But, that is just a somewhat educated guess.

[limonrod]

Thank you for your time and responses. Since he is amending another schedule, we will amend this one as well to reflect that it is his truck, individually.

Angelina, we filed in Jacksonville as well. What was your experience?

On another note, when I called the Clerk's office this morning to inquire as to the filing fee (we are amending Schedules B and C), I was told that there would be no filing fee. The clerk said that there would only be a filing fee if it affected a creditor, such as adding one in. I thought there was always a filing fee for amendments....

Thanks again!

[justbroke]

The amendment fee is only when modifying the creditors listed (typically only adding a creditor). There is no fee to change the exemptions.

[AngelinaCat]

Angelina, we filed in Jacksonville as well. What was your experience?

I think we had a very understanding trustee and judge. We made so many stupid and costly mistakes during the planning stages and after we filed, that we should have been dismissed. Our attorney did not properly educate us in the BK process, nor did we find this wonderful forum until after all those mistakes were made.

I think they also knew the situation with our attorney, as when the trustee could not get hold of her (she was routinely very hard to get ahold of) to offer us a compromise in one of our problems, the trustee's office bypassed her entirely and called us direct!

Without giving too much away on the public side, I will tell you that our trustee's initials are ARC, and the judge's are JF.

[limonrod]

Angelina, we seem to have the same Judge, but different trustee.

I am nervous for my hubs as I am going to have to educate him on all of this, especially the issue of using Federal exemptions, etc., as I know a whole lot more about all of this than he does, and he has a telephone conference with the trustee a week before his 341 meeting! I am going to go with him to the 341 meeting, but I know that I can't explain anything to the trustee on his behalf as I am not on the Petition and I am not an attorney.

Had I not read a post, actually I think it was your post Angelina, that telephone conferences are routine in the Middle District I would have swallowed my tongue when we got the letter from the trustee notifying us (him) of it!

Thank you everyone again for your input!

[AngelinaCat]

Angelina, we seem to have the same Judge, but different trustee.

How about one with initials RA? I have heard very good things about him. I don't know anything about any of the others.

Had I not read a post, actually I think it was your post Angelina, that telephone conferences are routine in the Middle District I would have swallowed my tongue when we got the letter from the trustee notifying us (him) of it!

Do NOT be afraid of the telephonic hearing. It works like a 'Dress Rehearsal' before the actual opening night of the play, wherin you find out all of the pitfalls and pratfalls that need to be corrected before the actual event.

I had thought that it was our trustee that insisted on the telephonic hearing. But if you have the same judge, but a different trustee, it could be something the judge wants, or it might be required of everyone in the Jacksonville section.

Anyway, when the question comes to your hubs, "Did anyone assist or help you fill out your documents?" I would advise you to tell him to say "yes", and why you helped him. He should also ask at this point, if you can help answer some of the more technical questions should he need it.

You have a 50/50 chance of a "yes" or "no" answer, but if you DON'T ask, the answer is always 100% "NO".

Of course, you already know about the rule of NOT volunteering anything other than what has specifically been asked for. And keep answers short and sweet.

You will probably be told at this time what else should be brought to the actual 341.

I can't think of anything else to add at this point. When is the 341 scheduled? I will be interested in how all of this goes....

[limonrod]

Thank you for the reassurance Angelina!

Yes! His trustee is RA! Glad to hear that you have heard good things about him!

I did tell my hubs what I had read in your post, about the telephone conference being a dress rehearsal, and because he has me to worry for him, he's not all that worried. I also told him that it would in all likelihood be apparent to the Trustee that he did not prepare the documents by himself. I told him to tell the Trustee that he assisted me (he DID hand me paper when the printer ran out of paper...), but that I, his wife, prepared the majority of it as I am a paralegal and I have a better understanding than he does of these things. I will tell him to ask the Trustee if I could answer any substantive questions, though. However, I am educating my hubs on his Petition, the amendments, his exemption predicament, etc., so that he can also be prepared to answer any questions that the Trustee may have.

His 341 is on 11/8, and telephone conference is 11/1.

I will definitely keep everyone updated on progress!

[AngelinaCat]

You have a PM.

[AngelinaCat]

Let us know how hubs does in the telephonic interview....

[limonrod]

Will do!

[AngelinaCat]

Hi Limonrod. How did hubs do in the telephonic interview??

[limonrod]

Hi Angelina! All went well! My hubs said that the Trustee just asked basic questions re: his truck, if that was his only vehicle, how many people in our household, was he expecting any money from any inheritance, other sources (other than employment), when did he move to FL, what led to Hubs having to file BK. My hubs said that the call lasted less than 5 minutes. The Trustee didn't ask anything regarding exemptions issue, who prepared his Petition and Amended Schedules, or some of the other things that I thought he would have asked.

I did run Hubs by a few sample questions the night before with what I thought the Trustee might also ask. I told him to answer, "yes sir, no sir," and not to volunteer any info unless asked.

His 341 is Friday, and we are being positive in that it will run as smoothly as his telephone conference went!!!