Family member holds title to my car

[yeahknow]

Short and sweet - My credit sucks, a family member bought a car for me and I make payments, I put $10,000 down & owe family member another $10,000. I've been making payments. Is this legal? Will this be viewed as Preferential Treatment?

[lrprn]

A question first - do you and the relative have a legal, signed, notarized loan agreement with signatures on it for the $10K? Or is it a "handshake" deal?

[yeahknow]

right now, "handshake deal" but I haven't filed yet, so not sure what to do. I gave my Mom $10,000 towards a $20,000 car - title is currently in her name, not sure what I should do..HELP!

[JRScott]

How long ago did you give the 10k?

[catleg]

Sounds like you are actually renting use of the car from her.

[AngelinaCatHub]

Sounds like you are actually renting use of the car from her.

That's the ticket. I like that answer. Still the open question, how long ago. You sure do not want to look like preferential or insider payment. 'Hub

[bumpruptcy]

Hi. I'm doing the same thing with my mom. Just a handshake deal. Truck is a little cheaper = $11K. Did this recently, as of November 2008. I plan to keep the car and continue making payments, but everything is in her name. My lawyer doesn't seem to know how to treat this. I explained this to the trustee and they didn't seem to question it at the 341. Don't know if that is good or bad. Any thoughts? Thanks.

[JRScott]

Hi. I'm doing the same thing with my mom. Just a handshake deal. Truck is a little cheaper = $11K. Did this recently, as of November 2008. I plan to keep the car and continue making payments, but everything is in her name. My lawyer doesn't seem to know how to treat this. I explained this to the trustee and they didn't seem to question it at the 341. Don't know if that is good or bad. Any thoughts? Thanks.

Did you transfer money to your mother in the last year? If so that could be seen as hiding assets, though since you've fully revealed it to the lawyer and trustee I think you'll be fine. They can seek money back from an insider to pay creditors though if they deem the amount worth it and the OP 10k is worth it.

[bumpruptcy]

Yep I paid my mom

I paid my mom. $1100 to start and $200 everything month thereafter. I didn't say anything about the $1100. I wonder if it is even possible for me to contact another attorney to draw up some sort of notarized document that indicates that my mom holds the title, but I am paying for use of the car. Is that even something I should try to pursue? Thanks.

[JRScott]

I'd call your lawyer and get his opinion. That's what you are paying him for and he'd have a better idea of how the trustee will act in your area.