I’m a purchaser of a boat, It was purchased in good faith. The individual I bought it from declared chapter 7 the trustee wants the boat.

Get Legal Help Today

 Secured with SHA-256 Encryption

I’m a purchaser of a boat, It was purchased in good faith. The individual I bought it from declared chapter 7 the trustee wants the boat.

I purchased a boat from a private individual may 1st “08” I wasn’t able to get the title transferred until jan “09”. On July 18th “08”, the person I purchased the boat from filed chapter 7 bankruptcy (unknown to me.) In april of “09” I recieved a letter from the trustee wanting my boat due to post petition transfer. His claim is that the title is solely the means of transfer. and because it was in the debtors name the boat is his asset. I have looked at the sited laws and find a transfer definition can be the time that the property is exchanged. (may 1st) before the bankruptcy was filed. I also find laws siteing that a good faith purchaser is protected form a post petition tranfer aslong as they had no knowledge of the bankruptcy, and they paid fair market value. I meet both of these. Can I assume that the court will also see this how I see this??? Thanks

Asked on June 20, 2009 under Bankruptcy Law, Idaho

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You may be called a bona fide purchaser -- one who purchases for value in good faith without notice.  Further, you relied to your detriment on the seller's promise to give good title when you paid the seller for the boat.

I think you will be okay with this premise. Obviously the trustee is hoping you don't understand this simple concept.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption