Can someone gift you a broken car while they're still under bankruptcy? 9 Answers as of April 13, 2016

I have a friend who's under bankruptcy and they have a car that's broken but can not fix it because of financial issues. Can they give me the car without it affecting their bankruptcy?

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Stephens Gourley & Bywater | David A. Stephens
Yes if it is exempt, or if it is not exempt, if the trustee abandons it.
Answer Applies to: Nevada
Replied: 4/13/2016
Philip R. Boardman, Attorney at Law
Philip R. Boardman, Attorney at Law | Phil Boardman
They should not do anything like that while they are in an active bankruptcy case. If they are in a Chapter 7 they will likely get their discharge in a few months and can possibly transfer it to you then.
Answer Applies to: Virginia
Replied: 4/13/2016
Ronald K. Nims LLC | Ronald K. Nims
As a general rule, while in chapter 7, a person may not make a gift of anything they owned when they filed. There are some exceptions but I would need more facts to determine if the car qualified for an exception. My advice is to wait until the bankruptcy case is over before accepting a gift.
Answer Applies to: Ohio
Replied: 4/13/2016
A Fresh Start
A Fresh Start | Dorothy G Bunce
It depends on where they are in their bankruptcy. Every asset of someone who files bankruptcy is subject to the ownership and control of their bankruptcy trustee, even assets that appear to be worthless. Unless the asset was protected by an exemption on Schedule C of the petition, and more than 30 days have elapsed since the 341 meeting was concluded, an individual in bankruptcy cannot transfer any asset.
Answer Applies to: Nevada
Replied: 4/12/2016
Law Office of Michael Johnson
Law Office of Michael Johnson | Michael Johnson
If already filed then yes.
Answer Applies to: Florida
Replied: 4/12/2016
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    Yes and no. Call your friend's attorney. He or she can guide you.
    Answer Applies to: Colorado
    Replied: 4/12/2016
    Patrick W. Currin, Attorney at Law | Patrick Currin
    If the car is exempt under the terms of their case and the trustee has concluded his investigation in the case, it is fine for him to give it away.
    Answer Applies to: California
    Replied: 4/12/2016
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Yes, as long as the chapter 7 trustee has filed a "no assert report" - which means he or she is not interested in any estate assets.
    Answer Applies to: California
    Replied: 4/12/2016
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    They can do so IF they have exempted the car. Ask them to check with their lawyer to be certain they have exempted it. If they were imprudent enough to proceed without a lawyer, ask them to look at their Schedule C, Exemptions, and let you know. If they have not exempted the car, and the case is still open, they can amend their Schedule of Exemptions.
    Answer Applies to: Wisconsin
    Replied: 4/12/2016
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