Hi guys so I purchased a vehicle for my mother but purchased it in the name of the business to get more favorable financing terms. The intention was always to pay it off then transfer it into her name. I've been told that transferring the vehicle into her name too close to a business Chapter 7 bankruptcy would be considered a fraudulent transfer... but how close is too close? For example: if we pay off the vehicle and transfer it into her name now, then wait 12+ months before filing Chapter 7 for the business, would it still be considered a fraudulent transfer? I'd really like for my mom to be able to keep her vehicle... it only has a blue book value of $9,000 so it's not like a huge asset or anything. Thanks for any info.
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Just don't do it. The fraudulent conveyance period under bankruptcy law is 2 years. HOWEVER, the Trustee can (and will) use state law. State law typically has a four year look back period.
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despritfreya thank you. What about buying a used personal vehicle that has a blue book value within personal Chapter 7 exemption amounts? Can a wildcard exemption also be put toward a vehicle? Basically if this has to happen I would like to have a vehicle worst case...Comment
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These are questions for your attorney. Generally, purchasing a vehicle before filing is not an issue but your mileage may vary (pun intended). As to the wildcard, I cannot answer as I rarely use the Federal wildcard and my state does not have one.Originally posted by ScaredGuy View Post
Des.
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