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.

Related Topics:
2 Lawyer Answers
Ray Choudhry
Ray Choudhry
Answered
  • 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.

Robert J. Walinski
Robert J. Walinski
Answered

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.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.