Legal Question in Bankruptcy in Massachusetts

question about car and bankruptcy

In Sept. 2005 I filed for Chapter 7 bankruptcy under the ''old'' laws. It was discharged in Jan. 2006.

In Feb. 2005 I purchased a vehicle for $9,000 but was unable to secure a loan due to my credit rating at the time.

My son who had excellent credit took the loan out soley in his name. The vehicle's insurance and registration is in both our names.

I have paid every month faithfully on this loan that is in my son's name. I would like to refinance and have it put in my name now that my credit is restablished quite well.

My son's finances have since gone a bit downhill. We both have very good jobs and make approximately $40,000 a year now.

He is actually contemplating having to file chapter 7. I am concerned about this loan. He has an 1998 mitsubitsi with 200,000 miles on it that is not worth much. It is soley in his name and he has no outstanding loan on it. My car however is in both our names.

Will it cause huge problems for him if I put the loan for '' my'' car in MY name? (btw he does not live with me and has his own household)

Would I be better off keeping my car loan the way it is, in his name as long as I continue the payments? HELP??

I thank you in advance.


Asked on 2/01/08, 11:51 am

2 Answers from Attorneys
Michael Eramo Law Offices Of Michael T. Eramo

Re: question about car and bankruptcy

Although any online forum is not intended to provide legal advice I would suggest you speak with your prior bankruptcy attorney. An experienced attorney would welcome your call and the opportunity to provide information regarding your question.

As a rule, your son is required to list the automobile and the loan on his bankruptcy petition. Then, there are forms available to re-affirm the auto loan if in fact that is the proper decision. Again, check in with your prior atorney.

Best of luck....Attorney Michael Eramo

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Answered on 2/03/08, 8:34 am
Dmitry Lev The Lev Law Firm

Re: question about car and bankruptcy

Okay... there are several issues. One is that if he transfers full ownership of the car to you and then he filed for Chapter 7, it may cause problems in his case, especially if the car has equity. He should consult a bankruptcy attorney and explain this issue carefully.

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Answered on 2/05/08, 12:34 am


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