Chapter 7 Questions

Question:
I am getting ready to file Chapter 7 and I have a couple of questions. I have a car that is titled in my name that was bought by my father for my daughter in which she is paying him for. How will my filing affect this asset and do I need to report it? Will the court say that since this auto (no lien) is in my name that I could use this car to borrow $$ to help pay my debt? I cannot use the car to put up as collateral per agreement with my father and daughter. I am filing myself not with my wife. Can I put the car in her name before filing? Also are past taxes normally wiped out if they are 3 or more years old? I am in Virginia.

Answer:
> I have a car that is titled in my name that was bought by my father > for my daughter in which she is paying him for. How will my filing > affect this asset and do I need to report it? The car is yours, not your daughter's, since it is titled in your name. Your father can, however, get a lien on the car for the balance of the debt on it (which you should discuss with your attorney). > Will the court say that since this auto (no lien) is in my name that I > could use this car to borrow $$ to help pay my debt? It is possible. > I am filing myself not with my wife. Can I put the car in her name > before filing? Sure. But you have to disclose the preferential transfer for no consideration (you gave it to her and she didn't pay for it), and the Trustee will ask the Court to set aside the transfer. > Also are past taxes normally wiped out if they are 3 or more years > old? Depends on the type of taxes, when they were filed, and when they were assessed. I have written a Bankruptcy FAQ which should answer many of your questions about what is involved in filing--it may be found at http://users.erols.com/lawyer/FAQ/br_faq.htm. I strongly recommend speaking with a local bankruptcy attorney. Most offer free initial consultations and he or she should be able to review your specific situation and let you know what you can and can't do. Take care.





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