Chicago Heights, IL asked in Bankruptcy for Illinois

Q: My sister filed a chapter 7. I inherited a used car. Can I give it to her without messing up the bankruptcy?

Her car is in really bad shape but is included in her bankruptcy and I am worried about her safety but I do not want the car I give her taken away to pay any debts.

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2 Lawyer Answers
Ray Choudhry
Ray Choudhry
  • Bankruptcy Lawyer
  • Moline, IL
  • Licensed in Illinois

A: If she has already filed, the Trustee should not be able to reach a gift given to her after she files.

A: Property acquired after the date of filing is not property of the estate, so no problem. Even if it were the debtor is entitled to an exemption in the amount of $2400.00 in any one motor vehicle. It is uncommon for a trustee to administer a motor vehicle in a Chapter 7 unless there is very substantial equity in the vehicle.

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