Q: When filing for a chapter 7 bankruptcy do I need to include all vehicles that are in my name even if its not my vehicle?
When filing chapter 7 bankruptcy in Missouri must I include all vehicles that are in my name, regardless if they are not mine nor in my possession? I am asking because I bought a few auction vehicles for relatives, they paid for them. I am worried that if I do they could be taken away from them during the bankruptcy, regardless of them being exempt or not.
Also, I had a vehicle repossessed from me. (That being the main reason I have to file bankruptcy) Do I need to include that vehicle on my bankruptcy as an asset?
A:
Hi there, as to the first question, the answer applies universally (i.e. regardless of jurisdiction). Yes, you need to disclose all assets in your name. This includes vehicles that you're letting others borrow/drive/possess. Additionally, if you intend to file a bankruptcy petition, you definitely do not want to simply give away assets to relatives as the panel trustee is likely going to sue your relative(s) to get those assets back, especially if those assets have enough value to make collection worth the effort.
As for the second question: If you still owe money to the lender after the repo, then you should include that amount in your bk filing because the amount owing is no longer secured and can be discharged. The reason is that once the repossession is done, though you may still owe money, the amount owing is called a unsecured deficiency balance. The lender could still sue you for the difference between the amount owing minus the auction price (assuming they auction the vehicle and obtain less than what you owed. them), but they cannot collect if you've filed for chapter 7. Hope this helps. Good luck.
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