Removing my name from car title before bankruptcy

Asked almost 4 years ago - Reseda, CA

I am considering chapter 7 bankruptcy in CA and I own two cars. The question is about the 2nd car that I bought for my dad 4 years and 9 months ago which my dad is listed as co-buyer. I was told by friend that it would be OK if I just transfer the title before I file chapter 7 but I am worried that I am relying on incorrect information. I hate to see my dad's car taken away. What should I do? Should I sell the car or should I just remove my name from the title? By the way, the car is not paid off yet. Thanks in advance.

Attorney answers (2)

  1. Jonathan Robert Panossian

    Contributor Level 9

    Answered . I noticed that you are near my office in Burbank.

    Since your profile reads that you live in Reseda, California, your 341(a) hearing will be in Woodland Hills and the Chapter 7 Trustees will give you a hard time if you transferred a property on the eve of filing for Chapter 7 Bankruptcy. At the 341(a) hearings, one of the questions that are almost always asked is "Have you transferred any properties valued at $5,000 or more in the last four years?" In fact, Nancy Zamora (one of the Chapter 7 Trustee's in Woodland Hills) has a form that you fill out at the 341(a) hearing and one of the questions that you have to respond to, in writing, is the one I just mentioned. If you transfer a property on the eve of filing, the Trustee is going to think you are trying to pull a fast one on them (i.e., hiding an asset).

    It's also important to determine if there is equity in the vehicle. If there is no equity in the vehicle, the Chapter 7 Trustee will not pursue that specific asset. But it is best to seek the advice of an attorney after you disclose all information to him/her and they can properly advice you.

    Good luck to you!

    www.JRP-LAW.com
    Jonathan Panossian, Esq.


    Disclaimer: The information contained on this website pertains to the law and legal procedures in general. It is neither intended to give legal advice for any specific case or situation, nor does it create an attorney-client relationship. Bankruptcy Law is complicated and you should consult with an attorney before taking any action. Should you have any questions or concerns regarding the legal aspects of your situation, you should seek legal advice from a professional immediately. Law Office of Jonathan Panossian, A PC does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. Thus, Law Office of Jonathan Panossian, A PC shall not be liable for any special, indirect, incidental or consequential damages, including without limitation, lost revenues or lost profits, which may result from the use of these materials. The information contained herein is subject to change without notice and does not represent a commitment on the part of Law Office of Jonathan Panossian, A PC. Any and/or all testimonials or endorsements do not constitute a guarantee, warranty or prediction regarding the outcome of your legal matter.

  2. Andrew Daniel Myers

    Contributor Level 20

    Answered . Don't do anything just before a bankruptcy, as a trustee has broad avoidance powers. Your interest in that or any asset may be protected by an exemption.

    Bankruptcy requires review of your entire financial situation including all debts, income and assets. I highly recommend that you retain an experienced bankruptcy attorney in your jurisdiction to guide you through the complexities of bankruptcy law and procedure. Do not file this bankruptcy without hiring a California bankruptcy attorney. You can't afford not to take this advice.

    If you find my answer helpful, please click the ‘thumbs-up’ tab below. Thank you.

    This answer is provided for informational purposes only. Actual legal advice can only be provided in an office consultation by an attorney licensed in your jurisdiction, with experience in the area of law in which your concern lies.

    http://bankruptcyattorneynh.com/Bankruptcy.asp

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

27,241 answers this week

2,830 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

27,241 answers this week

2,830 attorneys answering