Can I still legally sell my truck after judgement

[ivehadit]

Hopefull I'm in the right forum. I wanted to sell my truck before being sued but it didn't happen now I have a judgement. I'm not sure what to do. I own it free and clear and i know that's a big no no. I thought about getting a loan against it and make payments but I hate the thought of making payments. It is worth between 8 and 9 thousand, Ohio exemption for auto is 3225, can I use mine and my wifes exemption for autos together to bring this up to 6450? and since I did get a snow plow with it can I use tools of the trade exemption of 2025? thier's no lein placed on anything yet so if it's still legal for me to do so I will try for a quick sale.

[backtoschool]

So, are you filing for bankruptcy, or just trying to keep your car from having a lien put on my your judgement creditor?

If you are filing for bankruptcy, then in chapter 7 the car will have to fit within your exemptions (car exemption and any cash and wildcard exemptions you have left) , and for chapter 13, you will be protecting the car in full by filing.

If you are not filing for bankruptcy, then you can sell the car as long as the judgement creditor has not gotten a lien against it yet.

[ivehadit]

BK is definately in the cards but I need to put it off till Dec. When my son was a minor and bought his first truck we put it in my name just because it seemed easier to register and get insurance that way. November will be a yr since we put it in his name. I was think of going with a 13 so i can keep the truck but if i can sell it I'd rather go with a 7. I don't care if they only put a lein on it i just don't want them to come and take it.

[backtoschool]

BK is definately in the cards but I need to put it off till Dec. When my son was a minor and bought his first truck we put it in my name just because it seemed easier to register and get insurance that way. November will be a yr since we put it in his name. I was think of going with a 13 so i can keep the truck but if i can sell it I'd rather go with a 7. I don't care if they only put a lein on it i just don't want them to come and take it.

For a chapter 7, the look back period for any transfer of property including a sale is 2 years. You will have to cover the truck in your exemptions even if you did sell it.

[catleg]

As long as you sell it for fair value preferably an arms length transaction you should be fine. Then spend the cash for living expenses or put it into an exempt asset.

[bluemartini]

Shame these things happen at the worst times too.

ROFL

[ivehadit]

You would be better off encumbering it with a loan up to the exemptions amount plus a little bit more. See if you can go borrow money from a CU or local lender or even a friend or family member. But if you do that then you need to get a contract (and yes you can do a balloon payment like a year down the road) but you need to transfer the title to them as the legal owner. I am saying if you do this you do it right and legal. Its not illegal to borrow money against your truck and repay it back later.

Make sure your numbers on the value of your truck are correct. I am not sure where you got them from. Most people use the wrong number and value the item worth more than it is.

Not sure why your willing to take a loss on a quick sale vs making small payments on a small loan. But what if the engine in your truck went out and you have no way to fix it since your so broke? How much would it be worth with the engine sitting in the barn pulled out of the truck?

You would be amazed at how many cars I repo'd that broke down and never got fixed or the owner was never able to get the money to fix them. I bet that truck would only be worth $5k at most. No one is going to want to seize a truck with no motor in it and the value is only worth the exemptions, they wouldn't be able to get anything out of it. Shame these things happen at the worst times too.

Most of what you say has crossed my mind, getting a loan against it would be the easiest and probably best solution. The downfalls to that though is I have terrible credit now but if i could get 2/3 of the value on loan the exemption would cover the rest I will see what the banker has to say today.

[justplaintired]

I don't believe family members can give you a loan. If you do this and then make payments isn't that like perfential payments? I would advise speaking with an attorney. Have you done that yet?

You need good legal advise. With the transfer of title, find out your time line on filing. Also get blue book value on this truck. If you intend to use this for a winter business and intend to claim any income on your taxes and in your BK then it does become tools of trade. That is perfectly legal and acceptable. Don't try doing anything that might cause you a problem.

Before I went and jumped into a debt or a loan of any sort I would get legal advise. If the other poster is correct and it's 2 years after the title transfer you need to know this.

You also asked if you can use your wifes car exemption for the truck and I do believe it can be doubled so most likely yes unless she needs this exemption for another car. Also since that truck will be a tool of the trade, then I think you might just have it. I would consider buying the truck back from the trustee before I would chance a loan from family or one at a high interest rate. No point in BK if you will be coming out with high interest rate debt.

[catleg]

Preferential payments only apply to unsecured debts.

One of the "loopholes" if you will about BK law is that you are encouraged to pay your secured debts even when this results in your eventually building equity to the disadvantage of unsecured creditors.

Nevertheless, you would probably be better off borrowing from some arms length creditor rather than a relative. I can envision situations where the trustee might object to either a very high interest rate or a very low rate. Either could be viewed as siphoning off assets of the estate (future income) away from unsecured creditors.

[justplaintired]

Preferential payments only apply to unsecured debts.

One of the "loopholes" if you will about BK law is that you are encouraged to pay your secured debts even when this results in your eventually building equity to the disadvantage of unsecured creditors.

Nevertheless, you would probably be better off borrowing from some arms length creditor rather than a relative. I can envision situations where the trustee might object to either a very high interest rate or a very low rate. Either could be viewed as siphoning off assets of the estate (future income) away from unsecured creditors.

Ok got ya, but I think it may raise attention borrowing from family and then filing. I would avoid that. I mean what are you borrowing for? For a truck you own outright? And what did you use the money for? All guestions the trustee could likely ask. You owned the truck outright and then went and put a lein on it? I mean to do this with a loan from family, you would have to include them in your BK petition. They would basically be a lein holder on the title.

I would really talk to an attorney now. There is no harm in talking to an attorney and planning how to legally protect your assets. If that title transfer is a 2 yr wait, then it's very important to know that. Also, I think if you are serious about the snow plowing business, there is one way to save some of this truck's value, a consultation is generally free and even if it's not right away when you file, having an attorney ahead of time is wise. We paid our attorney 1 1/2 yrs before we finally filed.

[catleg]

BB is right and certainly gets no argument from me.