Legal Question in Credit and Debt Law in California

It may not be necessary to do that if your car has only limited equity in it. In California, a debtor can exempt a motor vehicle from levying on a judgment to the extent of $2,550 equity in it (or $4,850 if it's a commercial vehicle). Equity is the market value of the vehicle minus any amount of loan balance you have on it. If you have substantial equity in the car, and you sell it to your parents, as a practical matter that usually will be OK, but a very persistent creditor could still go after it by claiming it was a "fraudulent conveyance." However, that probably does not happen very often.

Larry L. Doan, Esq.

https://www.lawguru.com/cgi/bbs/attyPages/liem.html

Note: The above response is provided for legal information only and should not be construed as legal advice, nor to create an attorney-client relationship, which can only be established through payment of consideration. We do not offer free advice except for the information provided herein on LawGuru which has been screened. If follow-up advice on your specific situation is desired, we offer a paid consultation in person if you are in the Los Angeles area, or by phone or email.