Wife is going to file chapter 7 alone in one month about 50,000 in credit card debt. We don't own house just rent 3 bedroom apt. Me,wife,26 yearold daughter 20 year old son and 5 year old grandson.
We have three cars. Crv,accord,maxima. Crv is in wife's name.Accord is in both names. Those two areleased. We would like to keep making payments on both. Have 5 months on Crv and 2 years on Accord. Third car which is my 20 year olds daily driver in my name just got totaled this week. This car is titled and registered in my name only and payed off. Just got check for 15,000 in my name and also my wife's name because insurance policy is in both our names. We live in state of Massachusetts. Not to complicate more but my son who lives with us bought this car from me last year but we never changed ownership due to sky high insurance costs for under 25 driver.
What are my options ???
There are two issues to be addressed. The first is how much of the cash can you wife have in her name when she files her bankruptcy. The second question is how to spend the cash that you cannot protect.
These are highly technical questions. They are purely legal and logic does not apply.
I strongly suggest you use some of the money to hire avvo rated counsel to make sure the rest of the cash is used and protected in a way that is beyond reproach.
For example, your wife gives you $5000 for a reason that seems reasonable to you , the bankruptcy trustee will be more than happy to tell you that the reason is not reasonable and you need to give the money back to the Trustee so that Trustee can use it to pay creditors.
I have changed the practice area to bankruptcy as it appears that you are concerned about how the settlement check might effect your wife's bankruptcy. As an aside, you may have a problem if your son was not listed as the primary driver of the totaled car. Don't post a response on this forum, talk to an attorney privately.
Deposit the check into an account in your name only and use the funds to purchase a replacement car for your son and in your son's name. When your Wife files she should explain everything to the trustee....you will be fine. Not only is the money for a car that was in your name only, but you will likely have enough exemptions to keep the money anyway. Good luck
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