Legal Question in Bankruptcy in Pennsylvania

Loan to a family member

If I file Chapter 7 Bankruptcy and I have been paying a family member for a car that is currently in my name but that that family member orignally purchased for me. Is it possible to lose the vehicle even if I have a promisary note to that individual saying I am paying them back. Or is it easier to transfer the title back into their name like I could no longer make payments on it and gave the vehicle back to them. Thanks


Asked on 10/22/03, 1:45 am

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: Car issues in bankruptcy

Usually, all consumer assets are protected in a bankruptcy. You have a $2,500.00 exemption per vehicle and an $8,000.00 exemption in anything you want. Therefore, unless the car is worth more than $10,000.00, it is not at risk. If it is, you cannot simply transfer it to someone else. The fact of the transfer would have to be disclosed and the car would have to come back to you.

Bankruptcy is more complex than you might think and many attorneys do not want to handle it for that reason. You should speak with an attorney about this.

Feel free to call or E-mail me on a free initial basis.

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Answered on 10/22/03, 9:56 am


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