QUESTION
Should I be worried if my mother files for bankruptcy and her name is on my car title?
Asked on Mar 09th, 2012 on Bankruptcy - California
More details to this question:
My mother is filing bankruptcy and she is a co-signer on a auto loan that I have. Her name is also listed with mine on the title and car registration. Am I at risk of anything happening to my car? I am going to pay it off today since she warned me, but am worried that her name still being on the title could be a problem for me. Should I be worried?
9 ANSWERS
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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I would not pay it off. If you are the one who has maintained and paid for the car, you should not have anything to worry about.
Answered on Mar 12th, 2012 at 4:35 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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Definitely do not pay off the car now, that builds up equity in the car. You could have a problem with the bankruptcy trustee if there is equity in the vehicle. She could claim that she just has bare legal title, really your car, but this depends on who paid for the car and its upkeep and insurance.
Answered on Mar 12th, 2012 at 3:44 PM
Domestic Relations Attorney serving Huntsville, AL
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Ferguson & Ferguson
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You do not want to pay the car debt off if her name is on the title. If you do then she has a half interest in an auto that is free and clear and that could be a problem. Just make your regular payment on it.
Answered on Mar 12th, 2012 at 2:52 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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There are issues as it will look like she is a joint owner of the car and therefore half the equity in it should be available to her creditors. If would be wise for you to seek counsel.
Answered on Mar 12th, 2012 at 2:36 PM
Make sure her share is exempted in her Chapter 7 bankruptcy. No need to pay it off, in fact, that could increase the equity in the car and the amount needed to exempt it on her schedules.
Answered on Mar 12th, 2012 at 2:26 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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No just keep making payments.
Answered on Mar 12th, 2012 at 1:56 PM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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If you pay the car off, whatever the value of the car, she owns half. When you file, the bankruptcy trustee will see her half as equity to pay other creditors and will sell the car to get her half of the equity in your car.
Answered on Mar 10th, 2012 at 12:14 AM
Chapter 7 Bankruptcy Attorney serving Clinton, MS
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Timothy Kevin Byrne Attorney at Law
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As long as you pay the debt, you may keep the car.
Answered on Mar 09th, 2012 at 2:42 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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All assets must be listed in the bankruptcy. If the asset is not claimed exempt the trustee can sell it. It is probably not advisable for you to pay it off. This could be an incentive for the trustee to claim it. You should consult with an attorney as to the specific circumstances in her bankruptcy.
Answered on Mar 09th, 2012 at 2:23 PM