Should I file for bankruptcy if I am back on a loan?

It sounds like you have entered into a series of transactions, with creditors, parents and others that may all come in to play here. There is no way to provide specific advice without more information. I recommend that you contact a bankruptcy attorney.

Whether you should file bankruptcy or not will require a full review of all of the financial circumstances of your case. Unless your parents obtained a security interest in the car the loan to them will likley be treated as a general unsecured debt. Depending on the value of the car, you may well be able to keep the car. You must list all creditors, including your parents on your bankruptcy schedule should you file.

I do not know who is giving you legal advice, but it does not sound that you have a car loan with your parents and to register it in your parents name at this point in time would probably be considered a fraudulent conveyance.

As long as the car remains titled in your name it remains an asset reachable by a trustee in your bankruptcy. Also, bankruptcy law only recognizes a "secured creditor" who has a lien on your vehicle in compliance with state law perfecting such a lien. If your parents are not listed on the Florida title of vehicle as a lien holder they do not have a lien on the car. The fact that you borrowed money from your parents and pledged the vehicle as collateral does not protect your parents. You must do this before you file for bankruptcy.

Did you add your parents as a lienholder on the title certificate through the state of Florida? If not, there is no valid lien on the title. The trustee would claim the car is owned free and clear. And changing the title now would have its own problems. You should consult an attorney.

You need to talk to a BK attorney. Pre-filing transfers raise red flags.

Did you sign the title over to your parents? The trustee is not interested in taking the car unless it is a rare and expensive one. Do not register it in their name. Hire a bankruptcy attorney. Do not think that a petition preparer can get it done cheaper. They cannot give legal advice and you need a lot of that.

You've just about about committing bankruptcy fraud, a crime. You badly need to talk to a lawyer.

Do not register in your name and do not change title or do anything else to change the current situation. Most likely you can claim an automobile exemption in the bankruptcy. Consult with an attorney as to the specific facts of your case.

At this point you have all sorts of problems changing title and a title change could lead to a denial of discharge. What is the car worth? That will make a difference. You need to discuss this with a competent bankruptcy lawyer before you do anything.

To get the facts straight it sounds like your parents lent you money and you put this in a written agreement whereby you put the car as collateral, however, you never followed up with transferring registration to their name or taking any steps via DMV to show they have a lien on the vehicle? If that's correct, then youre parents have a lien on your car and your car will have less or no equity that needs protecting. The correct step would've been to take care of the transfer simultaneous to when you received the money as that would make it a valid transaction. At this point, it is a little late but I think it should be fine for you to fill out paperwork with DMV showing they have a lien on your vehicle. The Trustee may question the validity of this, wondering you're trying to hide assets, but if you can show that you've been making regular monthly payments to your parents as lien holders and you're treating them at arms length like any other creditor and are not 'preferring' them to any of your other creditors, then you're fine. The issue becomes if they feel like you are preferring family/friend creditors over other creditors or that you're transferring title to the car just to protect an asset and that there is no legit loan. As long as you can prove that there was a secured lien you're fine.

You should consult with a bankruptcy attorney about the specific facts of your situation to get the most accurate advice. Putting the car in your parents' name at any time close to filing your bankruptcy may raise a red flag. It will look like a preferential transfer which the trustee can reverse. It looks like an attempt to hide assets. Instead, depending on how much you owe on the car, its value, and the rest of your assets, the car may be exempted from your bankruptcy estate. In other words, it may be property which is not considered available for use to settle your debts and you won't have to worry about losing it. Again, the best way to determine how this should play out is to consult a bankruptcy attorney.

When you file for bankruptcy, there are a variety of properties that are exempt from the bankruptcy estate, meaning the trustee cannot seize and sell the property to pay your creditors. In Texas, you are allowed to exempt one car for every adult driver in the family household. Thus, to answer your questions: No.