selling car be fraud? and wage garnishment?

[Graphic]

Ok. So I have a car that is paid for.. and I'm not really doing anything about my debt right now because of the fact im in college, have no assets and my debts aren't that high. The only asset I DO have is my car (parents paid for and is in my name).

So my question is, if I sell the car for fair market value would it be considered a fradulent transfer? That way my parents won't lose their money off what they paid for it. Then they can get me something in their name (their idea).

Also, I'm planning on agetting a different part - time job soon. My question is what is Florida's law on wage garnishment? I know that if you are 'head of household' its 100% exempt.. Considering im single though, how would that work what percentage would they get, and how much would I have to make a week before they could take a percentage out?

Thanks

Ryan

[AAAArt]

Too many questions w/ not enough info. Give us some background info and where you are in the Bk process. Art

[Graphic]

I'm not filing bk. I have some credit cards probably around 8-10k owed.. but not going to file right now because from others advice on here..and some attorneys there is no reason to right now with no assets.

They can garnish my wages if they get a judgment on me, right? It's more of a question for future reference.

The only asset I 'have' is my car. Which is paid for.. what else is there to know?

Thanks

[Minnymouth]

Okay, let me understand this.....

You are not filing for BK right now or in the near future???
You are requesting information regarding garnishment of wages in your area......

Yes - your wages can be garnished for non-payment of bills if a judgement has been issured against you. The percentage of garnishment depends on whether single or married and with dependents...

Since you are not filing BK right now - yes you can sell your vehicle and your parents buy another and leave it in their name. But don't do this then file BK right away - because it would be considered fraudulent.

If all you owe is less than $10k, then go to work on paying this down as quickly as you can.... apply all available cash you can and wipe it out.....

Keep us posted,

[StaciMM]

I don't have a reference for state wage garnishment rules-but for most states, the maximum is 25% of your take home pay if no dependents, not head of household, etc. (After taxes, insurance, etc is the key amount-not the gross pay.) Generally, the first 30 X minimum wage is exempt from garnishment, which would be $154.50.

If those are the rules that your state uses-and your weekly part time check is less than $154.50, you won't be garnished.* If your take home check was $175, they could take $20.50/wk as that is the unprotected amount and is less than 25% of your take home. If someone's check was $600/week, the max garnishment would be $150 due to 25% restriction.

*I don't know if child support, taxes, etc. follow the same guidelines. Doesn't seem to apply to your situations, but I felt it good to mention for anyone else reading the thread.


About the truck-transferring it into your parents name (rather than going to the trouble of selling it) would be ok since you say you have no plans for BK. If you did end up filing bankruptcy in the next 12 months it would be an issue for sure, and could be an issue if you file after 12 months. (I think the trustee can look beyond 12 months, not really sure.)

If you sold it for fair market value, and later filed BK, you would mainly need to be able to account for what happened with the money. Giving the money to family = bad, using it for living expenses is ok.

[sobroke]

I am trying to not sound so judgemental, but why aren't you getting another job or going part time to school so that you can pay off your loans with a full time job. Most of us on this forum have graduated college (myself included) and we understand the importance of education, however, it appears that you don't really care about getting debt free.

By the way...who is telling you not to file now since you don't have any assets? That is the prime time to file. What are you going to do..wait until you have tons of stuff the trustee can take from you, then file?
At any rate, good luck and I'm sorry if I seem harsh. I was in your situation once and would love to do things over again!

[Graphic]

I am trying to not sound so judgemental, but why aren't you getting another job or going part time to school so that you can pay off your loans with a full time job. Most of us on this forum have graduated college (myself included) and we understand the importance of education, however, it appears that you don't really care about getting debt free.

By the way...who is telling you not to file now since you don't have any assets? That is the prime time to file. What are you going to do..wait until you have tons of stuff the trustee can take from you, then file?
At any rate, good luck and I'm sorry if I seem harsh. I was in your situation once and would love to do things over again!

I'm actually in school full time and about to graduate. I just got accepted to law school (what a coincidence). So that's the reason for only a part-time job. During law school I might not have a job at all if it keeps me as busy as I think it will(aside from interning etc.)

The reason I didn't want to file right now was because of the fact that I wanted to be able to pay it back WITHOUT having to file bankruptcy. I'd rather pay it back and just re-build my credit. Granted, it will cost me more and they may have judgments on me by then. However, since I have no assets (except the car) that was the reason I was asking about wage garnishment. I don't plan on having any extra 'assets' before I pay my other stuff first.

Anywho, I understand where you're coming from.. so no problem


As to what stacii said about selling the car and using the money for living expenses. I mean my parents did pay for the car, so would it still be fraudulent if I sold the car, and they used the money for another car in their name.. and I just happened to drive it? I mean we can obviously prove they paid for it and everything, I just don't want to come out one day and my car be gone because some lender got a lien on my vehicle and they decided they wanted it.

Thanks for the help.

[StaciMM]

If you're not filing BK, then you can do with the car what you want. I've never heard of a creditor getting a lien on a vehicle, though I don't know that it isn't possible either.

The only time fraud comes up is if you try to hide or transfer property in preparation for filing BK.

[sobroke]

Congrats on getting accepted into law school. My response was in no way meant to sound "bickering". (although when I reread it..it did!) College is a difficult time financially and you have to do what you have to do. It reminds me of my situation seven years ago. If I had it to do over again, I would concentrate on my bills a little more. If you are not filing bk, then you can do whatever you want with a car. I am sure that if you keep the current car, creditors can't put a lein on it even if it is in YOUR name. So what part of law are you going into? bankruptcy law? HA HA

[Graphic]

Hah, I thought about it after all the dumb mistakes I did. However I will more than likely do corporate or defense because they appeal to me the most.

[sobroke]

Uh...hello? You should have no problem paying off your debt if you go into corporate law. Good luck to you.

[Graphic]

Uh...hello? You should have no problem paying off your debt if you go into corporate law. Good luck to you.

Thanks. I just don't want any debt right now, and I'm sure I'll have some after very expensive law school

Oh well what can you do.