My car is paid off and I have the title. Only my name is on the title. If I have a credit card debt, and only my name is on the title, I know it can be taken from me and sold to pay the debt. If I include my husbands name on the title, and word it like this: Kathy Johnson AND Bill Williams, can they take my car without my husbands consent?
You may be able to claim a total exemption of $5,000 for your vehicle without adding your husband's name to the title. Putting him on title might be viewed as a fraudulent transfer.
You need a consultation with a lawyer, and you can probably get it for free.
You should go see a bankruptcy lawyer, or two and discuss your financial situation. Take all the paperwork. Not necessarily because you should file bankruptcy, but because BK lawyers are trained to know what if any are the options for you, and most will provide a free consultation and tell you exactly what you need to know.
If the vehicle is titled AND with a spouse, and the titling was done after the parties were married, then a creditor could not levy the vehicle as titled.
If the transfer is done under certain circumstances it would be considered a fraudulent transfer and a creditor could sue your husband to have it set aside. Then they could effect a levy of the vehicle subject to applicable law.
Be careful, you don't want to create more complications for your situation.
Hope this helps point you in the right direction.
I’m concerned that you may cause yourself more problems at this point if you transfer the title if you are not paying debt. This is known as a fraudulent transfer. I suggest you gain advice in person with an attorney so you don’t make any missteps in this process.
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