Will my son be able to kepp half of the sale of the vehicle if we file for bankruptcy?

If there is no proof of ownership by either party, you just need to indicate it that way on the schedules. It would also be best to exempt your husband's interest to keep it from being liquidated by a trustee.

Your son will be able to keep his portion. What his portion is may be in dispute. However, if your husband can attest to his portion, you should not have any problems.

This is a difficult question to answer in a post. Better to contact a local bankruptcy lawyer and ask for a free consultation to sort out what the respective rights are. Generally, assets claimed in bankruptcy are limited to personal interests and do not include the interests of others.

The vehicle needs to be scheduled as owned 50% by the filer and 50% by his son If the value of the vehicle is exempted under the available exemptions laws, you have nothing to worry about. If it is not, the son should be prepared to at least testify as to his ownership the agreement between the parties, the time spent building it and the money spent on parts. You should get the vehicle appraised for its value and then consult an attorney who can properly advise you.

When an asset that is co-owned the non-filer receives their part of the proceeds from the trustee's sale of the asset.

You might have an issue with proving that the vehicle is owned 50% by your son if there is no title and it seems like a vehicle like that might be difficult to value. Assuming that is resolved, your son can buy your husband's share from the trustee at a discounted price. You husband can also pay the trustee for his share of the value of the vehicle and keep the vehicle. This assumes that your husband cannot exempt his interest in the vehicle. The trustee prefers to sell your husband his interest in the vehicle or sell your husband's share to your son because it is quicker and less expensive so you can negotiate for a good price. If the amount involved is less than $5,000 the trustee might not even bother and abandon your husband's share in the vehicle back to your husband. It depends on the trustee and area where you will be filing as to how aggressive they are with regard to the amount that might be unexempt.