balance transfer check purchase

[tryingfor4]

We are getting ourselves ready for lawyer consultations.

End of June '07 we purchased a vehicle using a good rate on a balance transfer check from AMEX for about $18K. We then titled it to parents LLC in another state.

What would the ramifications of this be? Any suggestions to quietly head off any problems?

[Flamingo]

Make sure you advise your lawyer. You can probably expect an objection from AMEX. Did you make the check payable to yourselves or to the dealership and have you been making payments on the amount?

[tryingfor4]

reply

The check was payable to the dealership
Yes, we have been making payments, never missed or late.

I am very worried about involving parents.

I am wondering if we should sell the car and pay what we can to the card from the sale. We would take a big loss on it as it was in an accident and has just reduced in value quite a lot, like, had it in the paper a few months back for $13K and not even a call. This was before it was hit.

[Flamingo]

Amex will know that the amount was for a vehicle. Advise your lawyer of the situation and your worries and he/she will advise you. I would suggest making that appointment soon so you know what to do in this situation.

[tryingfor4]

talked to lawyer

Well, had first interview with lawyer yesterday. He said the auto will be no problem, that if AMEX approved the check without securing the debt, then they waived right to come back for it since I do not own it. Does this sound right. He just kept saying no problem to all of my concerns.

I am thinking he is making it sound too good to be true on a lot of issues.

[HHM]

Is this a car you routinely drive? Do you work for your parents LLC? Is this a personal AMEX or business AMEX.

If this is your regular car and you do not work for your parents LLC, the problem is NOT AMEX, but could be with the trustee unwinding the transfer to the LLC and taking the car.

Amex does not have a security interest in the car, and although $18K is a lot of money, you are nearly a year from that transaction and you have made payments, so your issue is probably not going to be with AMEX.

I think the issue is going to be with your BK trustee wanting to get a hold of that car. The trustee can go back 2 years (prior to your filing date) to "avoid" these types of transfers of assets.

[tryingfor4]

I see your point. Yes, this is my primary car, no I do not work for the LLC. The van was never in my name, paid for and titled to the LLC.

I had a few things that i thought were going to be an issue and each one he just kept saying "Oh, that won't be a problem". Such as also, my mother has been giving us $600 a month for over a year. He just said "it's a gift, so, no problem" but I am under the impression if someone regularly contributes to household expenses it will be added to your income regarding the means test.

I plan to interview 3 and he was my first.

Like I said, I think his out-look is one of those "if it's too good to be true..."

[HHM]

Yeah, go see a few more attorneys. I do agree with the attorney that AMEX will "probably not" be the issue, but I would be a little concerned about the car and the gift income.