QUESTION

Will I lose my car if my sister files bankruptcy?

Asked on Apr 19th, 2011 on Bankruptcy - California
More details to this question:
Will I lose my car if my sister files for bankruptcy and the car used to be under her name but now it’s under my name. Will her bankruptcy attorney be able to take my car away?
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5 ANSWERS

The answer depends on two things. If the transfer if less than one year prior to bankruptcy the trustee wins. If the transfer occurred more than one year prior and was based on fraud the trustee also wins.
Answered on Apr 22nd, 2011 at 2:27 PM

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Bankruptcy Attorney serving Cleveland, OH at Benson Law Firm
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That depends on the circumstances of your case. But this is a transaction between "insiders" and thus invites greater scrutiny from the bankruptcy trustee. If the transaction took place more than a year ago, you're probably OK. If it took place more recently, then it will be a question of whether fair value was given for the car and, if not, whether any unpaid value is covered by available exemptions.
Answered on Apr 22nd, 2011 at 11:52 AM

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Bankruptcy attorneys don't take anyone's car! If the title was transferred within a short time before the bankruptcy is filed, the bankruptcy Trustee may reverse the transaction and seize the asset on behalf of the creditors of the bankruptcy estate.
Answered on Apr 21st, 2011 at 7:49 AM

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William C. Gosnell
If she is still liable on the note, then unless she reaffirms the debt. The car is gone.
Answered on Apr 20th, 2011 at 10:42 AM

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Bankruptcy Attorney serving Hayward, CA at Carballo Law Offices
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Probably not but if you sister transferred the vehicle to you so that her creditors would not take it from her then she may have done a transfer which can be set aside by the bankruptcy trustee. It depends if you paid the fair market value for the car. Your sister cannot not simply give away property if she owes money to avoid having the creditors take it. She was supposed to report transfers of property within two years of filing for bankruptcy so it depends on whether she told the truth and reported the transfer or did not report it to prevent the trustee from finding out. It is not her bankruptcy attorney who will take anything but rather the trustee who is appointed by the court to investigate the bankruptcy case and recover any property of your sister, including property that was transferred illegally to avoid paying the creditors or that was transferred and not property reported in the bankruptcy petition. If your sister transferred property and did not report the transfer she might be denied a bankruptcy discharge and may even face criminal charges for perjury and/or bankruptcy fraud. Therefore, no one can answer your question without having a lot more information about what you sister did or didn't do and what your involvement was in the transfer. For example, if you did not pay your sister the value of the car and you knew that your sister was transferring so as not to lose it in the bankruptcy case or to avoid paying creditors, then you could be facing problems also including the loss of the vehicle.
Answered on Apr 20th, 2011 at 10:41 AM

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