What to do about my cars if I file bankruptcy?
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What to do about my cars if I file bankruptcy?
I am considering filing Chapter 7. I have 2, 10-year old vehicles, worth about $6000 each that I owe no money on. I’d like to give one to my son who’s heading off to college in a few months and I’d like to use the other one as a down payment on one or two used vehicles. Is this a valid and ethical strategy and will it withstand the scrutiny of the bankruptcy court?
Asked on January 14, 2013 under Bankruptcy Law, Louisiana
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Based upon what you have written about you can dispose of the vehicles that you wish and then wait ninety (90) plus days afterwards before filing for bankruptcy protection so the transfer is not deemed a preferential transfer of assets to defraud creditors that you owe.
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