I live in kansas My father passed away and my mom is going to file bankruptcy. My father had an old El Camino that he was going to fix up but never did, the car doesn't even run. Both mom and dad agreed that I would get this when he passed. My mom has two other vehicles that aren't paid off. She was told she can't just sign the title to me that I have to pay at least 500 dollars for it. She hasn't filed the bankruptcy yet. How come she can't just sign it over to me and why is it 500 dollars? The car isn't even worth 500 dollars.
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Old car
- Thread Starter Bullseye
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mightymoose
Moderator
Check with your state DMV and ask about signing the vehicle over as a gift. It shouldn't cost a thing, other than new registration fees.
army judge
Super Moderator
Was the vehicle titled in both names before dad died?
In most cases like these, mom or dad charges sissy or junior $1.00.
Mom could charge you $500, and she could return it to you as a gift after the sale.
I suspect the $500 was mentioned so that it doesn't appear that either of you are skirting the sales tax issue.
That said, sales tax is a non-issue in cases like this.
As M2 said, mom could simply gift you the car.
disagreeable
Well-Known Member
The issue is likely that the car can be sold for scrap or parts at $500. Giving away assets like that or committing fraud in or before a bankruptcy is a federal crime.
despritfreya
Active Member
If your mom just gives you the vehicle as opposed to selling it to you for fair consideration and then files a Chapter 7, the Chapter 7 Trustee can set aside the transfer and take possession of the vehicle. Whether or not you believe it has no value is not the issue. The issue is what the Trustee believes.
Your mom needs to be discussing how to handle the vehicle in her bk with a bk attny before she does anything and you need to stay out of it unless you want to become the target of a Complaint for Turnover filed by your mom's Trustee.
Des.
Your mom needs to be discussing how to handle the vehicle in her bk with a bk attny before she does anything and you need to stay out of it unless you want to become the target of a Complaint for Turnover filed by your mom's Trustee.
Des.
Betty3
Well-Known Member
Your Mother needs to be very careful "gifting" any assets right before filing bankruptcy or gifting/selling assets during bankruptcy. The bankruptcy can be dismissed. Your Mother needs to talk to a bk. attorney as suggested before doing anything.
mightymoose
Moderator
Was the vehicle mentioned in a will?
despritfreya
Active Member
Whose name? The decedent's? It would pass under the will or, if no will, based upon state law, most likely to the surviving spouse.
Folks,
There is no "fraud" in mom giving the vehicle to the son. Nor is she, by doing so, risking dismissal of her case assuming she discloses the transfer on question 10 of the Statement of Financial Affairs. She is not giving away the vehicle with an intent to hinder, delay or defraud anyone. It is simply a gift.
The problem is the lack of consideration. The transfer, if not done for fair consideration, can be set aside by the Chapter 7 Trustee under 11 USC 548. Before a Trustee will exercise such a right he/she will investigate. If the vehicle truly was worthless at the time of the transfer as a gift, the Trustee may simply let it slide. If the Trustee wants to make a few bucks but really does not want the vehicle he may "suggest" that mom (to protect the son), kick in a few bucks to the bk estate.
Mom needs to understand all of the ramifications of gifting the vehicle to the son on the eve of filing bk. It may or may not be an issue but as long as she is properly informed of what could happen, she will, in the end, make an informed decision/choice.
Des.
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disagreeable
Well-Known Member
Des, this car is worth a minimum of $500. Let me give you a brief look at what the parts are selling for used. A used ashtray light is listed for $19.95.
http://www.ebay.com/sch/i.html?_sac...ino+parts&_dcat=6030&rt=nc&LH_ItemCondition=4
http://www.ebay.com/sch/i.html?_sac...ino+parts&_dcat=6030&rt=nc&LH_ItemCondition=4
army judge
Super Moderator
One doesn't have to accept any bequest that passes to them either by will or intestacy.
If that happens, the bequest falls upon the next in line of succession, or staggers into the greedy, clutching hands of the monarch.
If that happens, the bequest falls upon the next in line of succession, or staggers into the greedy, clutching hands of the monarch.
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