Ch 7 - Pro Se Filer... Vehicle Question

[davedude]

Hey everyone - this forum is AWESOME!

Question) I am going to include my one and only vehicle in my Ch 7 (I currently make monthly payments on it.)

However I will still need a vehicle so I am going to drive my brothers old car and make payments to him (he's charging me $200/mo).

Because the car is not in my name and it's a family "contract" how will the BK Courts view my situation?

Will they see it as I make no monthly payments?

My main concern is on the MEANS test I am very close to the monthly income without a vehicle - however if I show just 1 vehicle it puts me under... does that make sense?

Thank you for any input you can provide!!

[BKParalegal]

Have your brother perfect the lien. Meaning sign a promissory note and he needs to record it within 30 days at the county clerks office. Then it is a legit secured loan and you can take the deduction for it.

Good luck

[davedude]

Thanks for your fast reply.

My brother still owes on the vehicle... so in a sense he's sub leasing it to me. I'm pretty sure that is not allowed per his lien holder but he is really helping me out in this situation and he's not really using it.

Knowing this...can I still do what you mentioned above?

Thx

[BKParalegal]

No. You can list the car in the SOFA and take the operating expense but not the ownership expense.

Good luck

[justbroke]

So, in this situation, davedude does absolutely nothing. davedude would claim the the operating expense. Since this is a pro se case, I wouldn't be surprised if davedude is over the median, and the United States Trustee (UST) doesn't start asking questions about this expense. However, I can't see how you couldn't claim it, since you could also claim public transportation as well.

[davedude]

So, in this situation, davedude does absolutely nothing. davedude would claim the the operating expense. Since this is a pro se case, I wouldn't be surprised if davedude is over the median, and the United States Trustee (UST) doesn't start asking questions about this expense. However, I can't see how you couldn't claim it, since you could also claim public transportation as well.

Thanks JustBroke - that's good information. As far as being over the median goes... I'm on the fence.

If you look at only the past 6 months pay stubs we are under the monthly income as wife hasn't been getting all of her hours in the last 7 months. However if you figure my salary and my wife getting all of her hours (she gets paid hourly) then we would be above the annual income requirement. So I guess I have a question regarding that as well...

Once again, thank you all for your help.

[BKParalegal]

The 6 month look back is on what you were paid not what you could have made.

[davedude]

Thank you BKParalegal