Would it be considered fraudulent for me to pay off my boyfriend’s car and put it in my name before a sheriff sale?

I have lived with my boyfriend for the past 4 years. bout 6 years ago he bought a car, however I have been making the payments on it for the past 2 years with the intent that once it’s paid off it will be titled to me. Earlier this year, the payment was far behind so I went to the bank and spoke with the loan officer and wound up taking a portion of my IRA to make a $2000 payment to bring it current. Since is was a large payment I have a grace period ending in July on which to make payments. I had intended on paying the remainder of the loan off next month, which is approimately $1000.

Asked on June 27, 2012 under Bankruptcy Law, Pennsylvania


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

There is nothing fraudluent with respect to paying off a debt of a third person before the scheduled sale of the collateral for it as what you wish to do for your boyfriend.

As a word of caution, if you pay off the debt remaining on your boyfriend's car, make sure that registered title for it is placed in your name alone, not his.

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