QUESTION

Planning to file Chapter 7 next week. I gave my son a car 2 years ago.t

Asked on Feb 07th, 2013 on Bankruptcy - Oklahoma
More details to this question:
The car was a gift from me but I held the title and it was never signed over to him. Can I sign it to him now? My husband is filing personal bankruptcy due to the failure of his business. My name is not on the business anywhere, I was never involved. The car i gave my son in is my name.
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1 ANSWER

Bankruptcy Attorney serving Burbank, CA
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Any time you transfer an asset for less than reasonably equivalent value, you run the risk of any creditors you have suing the party you transfer the asset to to recover the value transferred. This is the textbook definition of a fraudulent transfer and is governed primarily by the laws of your state. This also depends on the property laws of your state (whether community property or not) since the Trustee in your husband's bankruptcy case may be able to sue your son if you transfer the vehicle to him prior to the bankruptcy case being filed. You need to check with an attorney in your state regarding the possible fraudulent transfer issues. Most likely if your state is not a community property state, and you personally have NO debts (no credit cards, etc.) then it might be safe to transfer the vehicle to your son.  But I don't know what Oklahoma's laws are on that. Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.
Answered on Feb 07th, 2013 at 3:02 PM

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