Need OPINIONS in regards to vehicle transfer>>

[mesa777]

Opinions only please... I am "thinking" about filing bankruptcy.. At this point I AM NOT BEHIND on ANY of my bills... I can get another/second job to help make ends meet.... Question is... Am I able to transfer my vehicle into someone elses name and then a year later at that time "IF" I am having problems paying my bills then file for bankruptcy???

If I am not intending to file bankruptcy how could I be accused of any fraudulent activity???

Please HELP!!!

[keepmine]

Actually, they look at property transfers going back 2 years.

[lrprn]

I answered this in your other post regarding this from today. I said that you need to ask several experienced Arizona bk lawyers about selling a car to an insider (friend or family) before you do it. AZ lawyers will be familiar with how touchy the trustees in your local court are about this.

Keepmine is right....trustees can look back 2 years to see if ownership of an asset was shifted in an attempt to hide the asset....which in this case is what you are attempting to do. Frankly if the trustee suspects you are hiding assets, he/she can look back as many years as they want.

[CindyLou]

and if they suspect that a transfer was made to an "insider" (which is a family member, friend, business associate, employee, employer, etc) that would trigger a more in dept look at the transfer.

I came across something VERY interesting while "snooping" through pacer the other night. I had looked up a BK on a semi-high profile person from my old hometown. (I'm from a small town) I noticed that he had "sold" a vehicle a year earlier and listed the name of the person he had sold the car to. Well the person happens to be my uncle. Hmmm.....well I also happen to know that these two men are very good friends. There was 10,000 equity in the car. Long story short. This case was DISMISSED !!!!!!!! For various reasons but this was one of them!!!!!!!!! Don't try this at home folks.

[SinkingFast]

We sold a truck 6 months prior to filing.

We owed the IRS big time and had big time equity in the truck. We wanted to refi the loan on the truck to pay the taxes but attnys advised against that. Wouldn't look good taking on new debt on the eve of filing BK.

On the other hand, selling the truck was a sticky situation too. The only thing our attny said would make it palatable was the fact that we owed the IRS money. Our attny said, "The Trustee is not gonna go back to the IRS, a Priority Creditor, to get that money."

We documented, documented, documented that sale.

We had the sales receipt showing who the truck was sold to and for how much. We sold to a local dealer. We had our bank statement showing the deposit into our acct and the withdrawal to pay the IRS.

As others have pointed out,........... If there's even a hint that you've transferred the vehicle to a friend, family member, or close personal business associate,......... The Trustee can go back and void the transfer, seize the vehicle, and sell it for the benefit of your Creditors.

Definitely not worth the risk.

[mesa777]

Right... however how can this be labled as "fraud" if you transfer a vehicle or property prior to filing, over a year, as long as payments are current on all bills/debts?? When did it become illegal to transfer property? I am very confused into this matter in regards to transfering property... I can understand if a person is behind on bills... ect... however when you are current... ??????

[Bandit]

This thread makes no sense.
I sold a car in March this year for 600.00. How in the world am I supposed to know I would fall & break my neck in July?

What did I do with the money-
I applied it to tax, title & insurance, a set of chrome wheels for my truck.

Are you saying they will consider me selling a $600 beater to someone I don't even know as fraud? Then they go find that person & take the car away from them to get the money? That person may not even have the car any more.

[mesa777]

I agree... also how many trustees will take the time to look into something like this?

[keepmine]

Right... however how can this be labled as "fraud" if you transfer a vehicle or property prior to filing, over a year, as long as payments are current on all bills/debts?? When did it become illegal to transfer property? I am very confused into this matter in regards to transfering property... I can understand if a person is behind on bills... ect... however when you are current... ??????

The issue is, the vechicle you are transfering to an insider could well be considered property of your bk estate that could be sold to help pay your creditors.

[keepmine]

This thread makes no sense.
I sold a car in March this year for 600.00. How in the world am I supposed to know I would fall & break my neck in July?

What did I do with the money-
I applied it to tax, title & insurance, a set of chrome wheels for my truck.

Are you saying they will consider me selling a $600 beater to someone I don't even know as fraud? Then they go find that person & take the car away from them to get the money? That person may not even have the car any more.

You're mixing apples and oranges here. The OP is talking about transfering ownership of an expensive car in order to get an asset out of his name that would likely be property of the bk estate.
You sold a car for nominal value with no intent to defraud the bk court.

[Bandit]

You're mixing apples and oranges here. The OP is talking about transfering ownership of an expensive car in order to get an asset out of his name that would likely be property of the bk estate.
You sold a car for nominal value with no intent to defraud the bk court.

Oh. I thought it was for any car in two years. Thanks, keepmine.
I have no intent to defraud anyone, anything at any time. It was an honest sale & I sold it to someone with a handicap who could not afford a better car. It was perfect for him because it was originally used to drive handicap people to Doctors & special places. If he still has it I did not want them taking it from him. I was a bit concerned that it made me look like a fraud but I am not & it made no sense. I also don't want them to take my truck just for selling the old car.
Thanks again.