Can I change from chapter 7 to 13? 14 Answers as of May 02, 2014

My lawyer told me I would not have problems with my Chapter 7 with my daughter's cars that I co-signed to help her out. Now the Trustee wants to take them. What legal rights does my daughter have since she paid for both cars 100% and she has all the proof that shows she did.

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Law Office of Susan G. Taylor
Law Office of Susan G. Taylor | Susan G. Taylor
We don't have that sort of trouble in our jurisdiction; Statement of Financial Affairs question 14 should have listed you as holding that property for another, your daughter. The bankruptcy court follows the money.
Answer Applies to: Texas
Replied: 5/2/2014
EDWARD P RUSSELL | EDWARD P RUSSELL
At least in Minnesota the bankruptcy courts have taken the position that it assumed that the title holder of property has paid for it and has all rights to the property. However, if you can prove that your daughter paid for the vehicles then she certainly has equitable interests in the property. You should be successful in determining that they are not your assets. You must obtain a court order to?convert from a ch 7 to a ch 13.
Answer Applies to: Minnesota
Replied: 4/24/2014
Stephens Gourley & Bywater | David A. Stephens
You can convert to chapter 13 by filing a motion to convert. As to your daughter she would have to fight the trustee to establish she owns the cars rather than you.
Answer Applies to: Nevada
Replied: 4/24/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
NY is a title state so if the car is in your name, then it is your asset and he can seize it or you can pay the trustee for it.
Answer Applies to: New York
Replied: 4/23/2014
Bird & VanDyke, Inc.
Bird & VanDyke, Inc. | David VanDyke
You are in a bad position as it appears that the legal title to your daughter's car(s) (why does she have more than 1?) are in your name. You should have never filed bankruptcy in this situation. You will need to fight it with the trustee but you may not be successful. You might try to compromise the matter with the trustee.
Answer Applies to: California
Replied: 4/21/2014
    HARVEY S. MORRISON, ATTONEY AT LAW
    HARVEY S. MORRISON, ATTONEY AT LAW | HARVEY S. MORRISON
    How are the vehicles titled - are they in your daughter's name? You can convert from Chapter 7 to Chapter 13, but that may depend on whether you can fund the plan.
    Answer Applies to: Ohio
    Replied: 4/21/2014
    Timothy Casey Theisen, P.A. | Tim Theisen
    The federal statute is 541(d). You have what is called bare legal title, meaning your name is on it, but it's not your property, and therefore not part of your bankruptcy estate. However, the fact that your name is on title gives you rights to it, although I highly doubt a judge would say your rights have value.
    Answer Applies to: Minnesota
    Replied: 4/21/2014
    Cameron Totten | Cameron Totten
    Converting a case from Chapter 7 to Chapter 13 requires a motion to convert and a court order, unlike converting a case from Chapter 13 to Chapter 7. It may be difficult to convert if there are assets that the trustee can liquidate to pay creditors. It is important to make sure that the assets that you want to keep in a Chapter 7 can be exempted.
    Answer Applies to: California
    Replied: 4/21/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    If she can prove she paid for them, that is a "resulting trust" specifically provided for in the code at section 541. If your lawyer will not defend on that basis, get another lawyer. You do NOT need to go ch13. Get the proof together that she made all the payments.
    Answer Applies to: California
    Replied: 4/21/2014
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    You should get a second opinion from a very experienced attorney. You have a few options, but converting would certainly be one of those options. The second attorney will probably charge you for an hourly consultation (I always do when looking at some other attorney's filing).
    Answer Applies to: Colorado
    Replied: 4/21/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    The Trustee wants to take the vehicles because the Trustee doesn't have all the facts. Your lawyer does have the facts & will be able to present the evidence to the bankruptcy court showing that the vehicles are only nominally in your name. A chapter 13 is usually much more expensive than a car. It sounds like your lawyer has given you good advice.
    Answer Applies to: Nevada
    Replied: 4/21/2014
    Moore Taylor Law Firm, P.A.
    Moore Taylor Law Firm, P.A. | Jane Downey
    Your daughter may need to hire counsel.
    Answer Applies to: South Carolina
    Replied: 4/21/2014
    Wellman Law LLC
    Wellman Law LLC | Keith A. Wellman
    In Kansas she could fight the Trustee on the matter using that proof. She would be considered to have an equitable interest to the extent she made the payments. It's not that way in every state, so it largely depends on your state's law. But yes, a Chapter 13 would be a way to potentially work something else out so the cars wouldn't be taken. If your lawyer cannot answer the questions about how conversion to a chapter 13 would address these issues, then you probably need to find an attorney who will take the case over and convert (if that is in fact the best thing).
    Answer Applies to: Kansas
    Replied: 4/21/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    You may convert a chapter 7 to chapter 13. You might consider objecting to the trustee's motion for turnover if you can show that your daughter is the true owner by paying all related costs of ownership (loan payments, insurance, license plates, repairs).
    Answer Applies to: Indiana
    Replied: 4/21/2014
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