What will happen if I put a car under my grandson's name then filed for bankruptcy? 16 Answers as of June 17, 2011

I bought a car and put my grandson's name on it in case I died, so that he could have a car. I ended up filing for bankruptcy and returned the car and now the bank is threatening to sue him. the bank gave the lost to a receivable company. How can I help him, he really had nothing to do with this.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Law Office of Maureen O' Malley
Law Office of Maureen O' Malley | Maureen O'Malley
You could be denied a discharge, as that is a fraudulent act, designed to hinder, delay, or defraud creditors. Your car may be exempt, anyway, so speak to a lawyer about exemption planning.
Answer Applies to: Virginia
Replied: 6/17/2011
Lakelaw - Loop Bankruptcy
Lakelaw - Loop Bankruptcy | David Leibowitz
Your grandson is liable if he signed the note. If he didn't, then it's not his problem.
Answer Applies to: Illinois
Replied: 6/17/2011
Daniel Hoarfrost, Attorney at Law
Daniel Hoarfrost, Attorney at Law | Daniel Hoarfrost
Unless your grandson signed on to the car loan, he has no obligation to the bank.You and/or he may have a claim against the receivables co. for an unlawful debt collection practice.
Answer Applies to: Oregon
Replied: 6/17/2011
Saedi Law Group
Saedi Law Group | Lorena Saedi
If your grandson was a co-signer on the account then legally the creditor can go after him for the balance. They only way to protect him is to set up a payment plan with the creditor and repay the balance owed.
Answer Applies to: Georgia
Replied: 6/17/2011
Bird & VanDyke, Inc.
Bird & VanDyke, Inc. | David VanDyke
If you somehow obligated your grandson on the loan for the car then he has a problem. Simply putting his name on the title to the car and not on the loan should not obligate him on the loan. If he is a co lender on the loan he is obligated to pay the repo deficiency balance or they will sue him not to mention ding his credit.
Answer Applies to: California
Replied: 6/17/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Was your grandson a co-signer on the loan? If he was they can go after him. If he was not a co-signer see a lawyer now. He can sue them.
    Answer Applies to: California
    Replied: 6/17/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    The Bank can seek the deficiency on the car from your Grandson if he was on the loan. Once someone accepts liability for the debt (i.e. he is on the loan) then there is not much that can be done.
    Answer Applies to: New Hampshire
    Replied: 6/17/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    Did you put the car in the grandson's name, or did you put the loan in his name? Did the grandson sign for the car loan? You made him your co-signer. Not much you can do about that.
    Answer Applies to: Virginia
    Replied: 6/16/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    I don't understand on what basis they can sue himif he did not sign on the loan for the car, then he can't be liable for the loan. When you say you "put his name on it", what do you mean? Did you add his name to title after you financed the car or was he part of the initial purchase and signed the loan documents? Really not enough information to answer your question.
    Answer Applies to: California
    Replied: 6/16/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    That means he must have also been a borrower on the loan. If so, he is also legally liable, and if you filed, he is the only person left to go after for the deficiency after the repossession sale.
    Answer Applies to: California
    Replied: 6/16/2011
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    If the car was in your name first, and was an asset with equity, then what you did was considered a fraudulent conveyance. However in order to pursue you, they need to file an action against you. Generally the action is an Adversary Proceeding. However , if you are asking how to discharge the deficiency debt on the vehicle after surrendering the car to the bank, then it depends on who the debt is under and how this was handled. While your question is somewhat unclear, it sounds as though you are trying to have your cake and eat it too. You need a lawyer. Thanks for tuning in!
    Answer Applies to: Connecticut
    Replied: 6/16/2011
    Grennier Law
    Grennier Law | Michael Grennier
    If your grandson is on the loan, the finance company can collect from either of you... you are joint and severally liable. If he is not on the loan, they cannot come after him for a debt that he did not contract for.
    Answer Applies to: California
    Replied: 6/16/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    When filing for bankruptcy, a debtor should never transfer valuable property out of their name prior to filing bankruptcy. This could be considered a fraudulent transfer and a bankruptcy trustee may actually reverse the transfer and sell the property if it is not protected by bankruptcy exemptions.
    Answer Applies to: Washington
    Replied: 6/16/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Unless the lender has a loan signature from your grandson he should not pay for your debt.
    Answer Applies to: California
    Replied: 6/16/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    If your grandson is a co-debtor (his name on the loan) on the car loan then he owes the money. If he is just on title then he does not owe the money. If he owes the money then nothing you can do about it.
    Answer Applies to: California
    Replied: 6/16/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    If he is on the loan and you filed bankruptcy, as your lawyer already told you when you filed, you screwed him badly with your filing. He either has to pay or file bankruptcy.
    Answer Applies to: Georgia
    Replied: 6/16/2011
Click to View More Answers:
12 3 Free Legal QuestionsConnect with a local attorney