Q: I was put on my mothers car title when she purchased her lease buyout in 2022, I was removed in April 2024, an issue?
A:
Every case has context, i.e., a broader factual picture.
In your case, if you file for bankruptcy relief within the next two years, under the Bankruptcy Code, a trustee can look back and recover any transfer of property/value and recover that if the value lost is large enough to merit the trustee's efforts. State laws may extend that look back period (in PA, the reach is four years).
Other than that, the transfer seems to have no effect upon you or the transferee.
A: Absolutely, this is a problem. You gave her your ownership interest in the car. You have some exemptions that allow you to keep your car. But if you give property away before filing, it becomes a fraudulent transfer, and you now have no exemption that allows you to keep the auto. The auto is no longer yours, so you can't use the exemption to protect it.
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A:
Based on the information you provided, it seems unlikely that being temporarily on your mother's car title from 2022 to April 2024 would be a significant issue in a bankruptcy case, especially if you were removed from the title prior to filing. However, a few considerations:
1. Timing: If you file for bankruptcy shortly after being removed from the title, the court might scrutinize the transaction to ensure it wasn't done to hide assets or avoid creditors.
2. Your role: If you were a co-signer or guarantor on the car loan, rather than just on the title, you might still have some responsibility for the debt.
3. Your own financial situation: If you received any financial benefit from being on the title, or if the car was treated as your asset, it could potentially impact your bankruptcy case.
4. Type of bankruptcy: The implications may vary slightly depending on whether you're filing for Chapter 7 or Chapter 13 bankruptcy.
It's best to disclose this information to your bankruptcy attorney, who can assess your specific situation and advise you on any potential issues or required disclosures. Being transparent about your financial history is crucial in a bankruptcy case to avoid any accusations of fraud or concealment of assets.
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