Central District Consumer Bankruptcy Attorney's Association

I don't see why the friend would necessarily need to know about the
bankruptcy.  The car is property of the estate and it must be
listed, along with the secured debt.
The car can be paid outside the plan (direct payments).   If you put
the vehicle payment in Schedule "J", you would then need to put the
offsetting payment by the friend in Schedule "I", and the Trustee
might require a Declaration from the friend that he's making the
payment, thereby causing the friend to find out about the
bankruptcy.  But that is the proper way to handle it.  But perhaps
another way to do this is not include the vehicle payment in
Schedule "J" and put a note at the bottom of J which explains the
direct payments from the vehicle user.   Then in the plan you just
indicate direct payments will be made by the debtor.
Honestly that's a bit sloppy and a long way to go just so the friend
doesn't find out.
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On 12/13/2017 1:27 PM, tuanl@stevelopezlaw.com [cdcbaa] wrote:
>
>
> Dear List,
>
> I have a client that allowed a friend to use their name/credit to
> purchase a car.  The car has about 2 years worth of payments left
> before it's paid off.  Both the car and the loan are under the
> client's name and nothing is in the friend's name except for the
> insurance.  The friend pays the lender directly.  The client wants
> to keep the friend from knowing anything about the bankruptcy.
>
> Could the car be paid outside of the plan or must it be included?
> Also, is there anyway for the equity on the car to be left off of
> the calculation of the plan since there is not enough exemptions
> to cover the equity in the car?
>
> Thanks,
> Tuan Le
>
>
>
>
>
>
>
> Virus-free. www.avg.com
>
>
>
>

The post was migrated from Yahoo.

541(d) isn't limited to real property, I suppose it could be applied in a vehicle purchase contract situation with full disclosure of the facts and argument somewhere in the original filing forms, scheduling the vehicle and the secured creditor; this will trigger reaffirmation agreement considerations. I would also report monthly payment on Schedule I and the loan payment on Schedule J despite the direct payment. I'm not sure how others on this listserve might handle this scenario.
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On Wednesday, December 13, 2017, 1:27:15 PM PST, tuanl@stevelopezlaw.com [cdcbaa] wrote:

Dear List,
I have a client that allowed a friend to use their name/credit to purchase a car. The car has about 2 years worth of payments left before it's paid off. Both the car and the loan are under the client's name and nothing is in the friend's name except for the insurance. The friend pays the lender directly. The client wants to keep the friend from knowing anything about the bankruptcy.
Could the car be paid outside of the plan or must it be included? Also, is there anyway for the equity on the car to be left off of the calculation of the plan since there is not enough exemptions to cover the equity in the car?
Thanks,
Tuan Le

The post was migrated from Yahoo.