Legal Question in Bankruptcy in California

transfer of an asset before bankruptcy

I was just informed that my in-laws are going to filr bankruptcy (messy divorce). They own a home (appraised at $95,000, equity $30,000), debts equal equity. They own three autos...cad/old est. value $3,000; truck/old est. value $500.; truck est. value $2,500 (this truck was given to us aprox. 8 months ago..but, we never transfered it into our name (I know...bad move!). Now, we want to put it into our name..fearing that the bankruptcy may turn it into a cash asset. If we put it in our name today is it 60 days before the bankruptcy can begin? Or, since the value is so low the auto will not be touch? What do you think would be the best move for us? I suggested that my in-laws meet with a Bankruptcy Lawyer instead of going through a para legal since and put everthing on the table.


Asked on 2/19/98, 12:02 am

1 Answer from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Attorney At Law

I do a lot of these case and run into this all the time. the transfer to you was valid 8 months ago even if title wasnt changed over. Just tell the truth about it. go ahead and change the title now. You can just list it as an 8 month old transfer. if asked about the tile change just tell the truth. if you have had possession and use of it for 8 months that s evidence of a legitimate transfer.

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Answered on 2/24/98, 2:56 am


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