What happens if you sell a vehicle prior to filing bankruptcy?

Get Legal Help Today

 Secured with SHA-256 Encryption

What happens if you sell a vehicle prior to filing bankruptcy?

Asked on July 12, 2012 under Bankruptcy Law, Ohio

Answers:

Terence Fenelon / Law Offices of Terence Fenelon

Answered 8 years ago | Contributor

Yout question requires several more questions to be answered.  If you sell the vehicle to a third party for fair market value, be prepared to make a full accounting of the proceeds to the bankruptcy trustee.  Also, be prepared to establish the value of the car as well as the indentity of the purchaser.  If the vehicle is sold to an insider (friend, relative, etc.) the transaction will come under  greater  scrutiny.  If the price is not what the trustee thinks is fair, he or she could avoid the transaction and regain the vehicle/  You would be liable tfor the repayment of the purchase price to the buyer.  If not revealed to the trustee, you would be risking a discharge of debt because you took an action to conceal or dispose of assets.  Finally, the answer would depend upon whether the car would be exempt under your state statutes,


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