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Transferring a car title,, How do they know?

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    Transferring a car title,, How do they know?

    Just curious.. If someone was currently in the middle of a CH 13 plan and sold a cheap car. lets say for about $500, How does the trustee find out? Is there some system somewhere that throws up an alert to them whenever a person in a plan transfers title of something?

    I realize the right and legal thing to do is to get permission etc... but I was just curious about how the system works? Not trying to sneak around behind the trustees back but lets say I want to sell an old car thats just sitting in the yard. I want it gone and might get $500 for it. I would have to file a motion to the court to get permission which might be a $200 filing fee through my attorney. Makes it really not worth the hassle. If I just sold it without letting them know, how would they know? Is this a case of "better to ask forgiveness than permission?

    #2
    Quite honestly, I rather suspect the trustee could care less about a $500 car.

    During my Chapter 13 I disposed of two old cars, one for $500 and one for $300; the first was the car I entered the Chapter 13 with.

    Supporting the above, once you're into a Chapter 13 (in other words, once you're confirmed), then the only real thing your trustee cares about is you making your payments on time and how big your annual tax return is (or if there are any significant windfalls like an inheritance, or a huge promotion/raise in pay).
    Latent car nut.

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      #3
      I'd keep the car in the yard until you replace the car or the 13 is done (whichever comes first). You don't tell the trustee the car is sitting idle in the yard lol. The car represents expenses in your budget you are no longer entitled to once the car is gone. If you sell and don't replace the car, there could be an exemption issue with regards to the proceeds where they may or may not have to be turned over to the trustee. If you need to finance any car during your 13, the issue of this car's disposition may come up too.

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        #4
        Originally posted by flashoflight View Post
        I'd keep the car in the yard until you replace the car or the 13 is done (whichever comes first). You don't tell the trustee the car is sitting idle in the yard lol. The car represents expenses in your budget you are no longer entitled to once the car is gone. If you sell and don't replace the car, there could be an exemption issue with regards to the proceeds where they may or may not have to be turned over to the trustee. If you need to finance any car during your 13, the issue of this car's disposition may come up too.
        While I agree with much of what you write, I seriously doubt the sale of "an old car that's just sitting in the front yard" is something the Trustee would care about, especially if it wasn't financed at the start of the Chapter 13.
        Latent car nut.

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          #5
          Thanks for the advice. I was thinking it probably wouldnt matter much but I just wasnt sure how the system worked.. Is there some mechanism in place that alerts the trustee somehow if anything titled to me gets transferred or sold to someone else? I kinda doubted there was but I just wasn't sure. I think its basically on the honor system? Even though its only a few hundred bucks or so, I didnt want to throw up any kind of red flags.

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            #6
            Originally posted by BKinMaine View Post
            Thanks for the advice. I was thinking it probably wouldnt matter much but I just wasnt sure how the system worked.. Is there some mechanism in place that alerts the trustee somehow if anything titled to me gets transferred or sold to someone else? I kinda doubted there was but I just wasn't sure. I think its basically on the honor system? Even though its only a few hundred bucks or so, I didnt want to throw up any kind of red flags.
            No, there is no such a system.
            Latent car nut.

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