If Iam about to file for bankruptcy and my daughter’s car title is still registered in my name, will it be bankruptcy fraud ifI transfer it to her?
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If Iam about to file for bankruptcy and my daughter’s car title is still registered in my name, will it be bankruptcy fraud ifI transfer it to her?
She has had the car for 5 years. I do not use this car. She even lives in a different city.
Asked on November 16, 2011 under Bankruptcy Law, Kentucky
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Yes, it may be considered fraud, since it would be a transfer removing an asset belonging to you (whether or not you consider this your daughter's car, it is legally yours, if titled in your name) and hence reachable by creditors and potentially subject (in ch. 7) to your bankruptcy, and giving it, for no consideration, to a relative. Once way to do the transfer without it possibly being considered fraud would be if she pays you for the car. She would have to pay within the range of acceptable values for a car of that make, model, options, years, mileage, condition, etc., but she does not need to pay at the top of the range--just within that range.
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