I have a really serious problem. I need to file chapter 7 (sooner rather than later) and both my husband and I have cars whose note is more than the value. WE plan to use 722 redemption to keep them. the problem is that a year ago I registered a car for my brother in law in my name ( no car note) its value is about $7000. I don't even have the car, its in another state and my brother drives it exclusively. The problem is that he stopped paying the car insurance as agreed so I told him to send back the plates and he gave the title to someone else to register for him where he lives. Now when I file my chp 7, I don't want the trustee to think I am trying to "transfer" the car so that I can keep it. Worse than that, I don't want them to go after his car and sell it as an asset. Is there anyway to avoid this problem? I really need to file now and can't wait the required 12 months from the title transfer, but I also don't want him to lose his car. Any help would be appreciated
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you need to consult with a bankruptcy attorney and give them the low down on the car. I think that being up front about the whole situation and having the lawyer put it into your schedules the "right way" prevents a lot of future problems with the trustee down the road. You have an explanation for the vehicle and at the time, didn't plan to fiile BK. You didn't transfer the title after filing or after consulting with an attorney. So as long as you are up front with your attorney, he/she will know how to handle the car situation on your schedules. Good luck
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