Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do: (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.

Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Payments for buying car from relative prior to filing.

  • Filter
  • Time
  • Show
Clear All
new posts

  • Payments for buying car from relative prior to filing.

    Hello, everyone.

    My wife and I are planning to buy a car from her aunt and uncle prior to filing Chapter 7. We are now filing jointly. I had originally planned on filing individually but we got hit with large medical bills in her name so we've decided a joint filing makes more sense.

    My attorney and his paralegal have said the vehicle must be "perfected" before we file, as we are planning on making payments to her aunt and uncle for the vehicle. Essentially they are going to hold the title as a secured creditor while we make payments to them. We're going to have them create a bill of sale which we are then going to file with the DMV, showing them as security interest holders on the title and registration form. We're hoping this will help avoid any issues with insider payments.

    I'm a little nervous about the process as I don't want her aunt and uncle to be negatively impacted if something goes wrong. Has anyone else dealt with a situation like this? Were there any hiccups or issues you ran into?

    Note: We're not trying to be dishonest in any way but we currently only have one car and an 8-month-old baby, so a second vehicle is a necessity and financing one through a major dealership isn't an option at this point.

  • #2
    As long as you are paying Fair Market Value (FMV) for the vehicle, and you can show documentation proving that, you should have no problem. It reads like you already have that matter well in hand.

    Good luck to you!
    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."


    • #3
      Let me suggest that you get some more help with what is a "secured" interest with respect to motor vehicles in your State. In Florida, the secured party could hold on to a promissory note (installment agreement) and should have the title updated to reflect them as a lienholder (that's the most important). It is probably in the lienholder's best interest to actually physically hold on to the title until the debt is satisfied.

      "Perfection" of the lien is important. Please seek help with this. There are many conditions about perfection when it comes to bankruptcy.

      I don't know about Oregon, but in Florida, the Department of Highway Safety and Motor Vehicles (DMSHV) will typically help a notice "lien" a vehicle properly. To place a lien on a vehicle, you will typically pay a fee for a new paper title to be generated which has you listed as lienholder.
      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
      Status: (Auto) Discharged and Closed! 5/10
      Visit My BKForum Blog: justbroke's Blog

      I am not an attorney. Any advice provided is not legal advice.


      • #4
        Also, the UCC requires the lien to be perfected within a certain time period of the sale. I think it's 20 days.
        I'd agree with Justbroke-let a lawyer handle this one from start to finish.


        • #5
          you can draw up the promissory note yourself and save yourself a few dollars. one really does not to incur unnecessary legal fees for such a simple and clear document. no need to make this more complicated than need be, with all due respect to my fellow forum members . as suggested by jb, the title should be held in your aunts name until the loan is paid in full.

          here is a sample and they are all "legal" :
          8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! and all are welcome to bk forum's Florida State Questions and Answers on BK


          • #6
            Perfecting a lien is more involved than drawing up a note in the bk context.
            We've had a few members over the years who have had trustee issues with liens that were not properly perfected.



            • #7
              yes, keepmine, i am aware of this. however, usually dealing with family loans the courts have been accepting of less complex formats. between family usually the loans are less "formal" and while just as any creditor allowed to be listed. the problem i see is a conflict period on situation such as this for paying one creditor over another, we all know that not all creditors are treated equally. why is one paying their family and not their credit card bill??

              personally, if it were me, i would wait until after the bk period. this type of situation can cause problems no matter which way you handle it and to me, the easier it looks the easier it is handled by the trustee. i just see the entire situation as a possible priority claim that can be challenged by the court.
              8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! and all are welcome to bk forum's Florida State Questions and Answers on BK


              Unconfigured Ad Widget