I have questions about this transaction and how it would be handled:
Which Chapter is being filed, which jurisdiction. That could affect which
trustee wants it reported which way. That might affect the way I would
characterize the transaction.
If I were doing it (Okay now to take a risk of looking really dumb) in a
chapter 7
1. I would put on Schedule B the Debtor's car which is in possession of
cousin.
2. I would put on Schedule G that the Debtor is Leasing to his cousin the
vehicle listed on schedule B with option to purchase upon full payment for
the terms and conditions the Debtor's loan which on Schedule D. ASSUME this
LEASE to own.
3. I would also list on Schedule G that Debtor is similarly leasing
cousin's vehicle with an option to purchase at the end of the payment
period. ASSUME THIS LEASE
4. I would make sure that I report on SCHEDULE I the amount cousin is
paying to make up the difference in value of the vehicle.
Granted there is no formal lease, but verbally, that is essentially what
they are doing. Because at the end of the day, what happens if one brother
stops paying? The non-debtor brother stops paying and the lender comes and
repo's the vehicle that Debtor is driving. What's he going to do? I had
previous issue come up in case where the debtor failed to list a lease
agreement and then took back the car that his sister was paying. Created a
family fight and one pissed off sister asking me why it wasn't reported in
the bankruptcy as a lease to own etc. and threats she would report to "the
authorities" that debtor lied. Smoothed it over with the family and got it
straightened out, but. . . who needs that kind of problem? Yeah?
On Mon, Jul 26, 2010 at 4:49 PM, Robert wrote:
>
>
> In a law school essay situation, Client has already entered into the
> following transaction:
>
> Debtor and Cousin agree to swap cars (no financing on either car) while
> Debtor makes up difference in value by making payments to Cousin.
>
> Title will not change on cars until Debtor finishes payments.
>
> I am listing Debtor's original car (in possession of cousin) on Schedule B,
> and car Debtor is using on SOFA #14.
>
> Cousin is a creditor on Schedule F.
>
> Yes, there is a writing between the parties.
>
> Anyone disagree?
>
>
>
R. Grace Rodriguez, Esq.
OFF: (818) 734-7223
CEL: (323) 304-5496
NO EX-PARTE NOTICE VIA VOICE MAIL OR EMAIL: I do not accept e-mail notice
for ex parte Applications via voicemail or by email. You must comply with
California Law and give notice to a person in my office during regular
business hours.
CONFIDENTIALITY STATEMENT: This message contains privileged and
confidential information and is intended only for the individual named. If
you are not the intended recipient you should not disseminate, distribute,
store, print, copy or deliver this message. Please notify the sender
immediately by e-mail if you have received this e-mail by mistake and delete
this e-mail from your system.
I have questions about this transaction and how it would be handled:Which Chapter is being filed, which jurisdiction. That could affect which trustee wants it reported which way. That might affect the way I would characterize the transaction.
If I were doing it (Okay now to take a risk of looking really dumb) in a chapter 71. I would put on Schedule B the Debtor's car which is in possession of cousin.
2. I would put on Schedule G that the Debtor is Leasing to his cousin the vehicle listed on schedule B with option to purchase upon full payment for the terms and conditions the Debtor's loan which on Schedule D. ASSUME this LEASE to own.
3. I would also list on Schedule G that Debtor is similarly leasing cousin's vehicle with an option to purchase at the end of the payment period. ASSUME THIS LEASE4. I would make sure that I report on SCHEDULE I the amount cousin is paying to make up the difference in value of the vehicle.
Granted there is no formal lease, but verbally, that is essentially what they are doing. Because at the end of the day, what happens if one brother stops paying? The non-debtor brother stops paying and the lender comes and repo's the vehicle that Debtor is driving. What's he going to do? I had previous issue come up in case where the debtor failed to list a lease agreement and then took back the car that his sister was paying. Created a family fight and one pissed off sister asking me why it wasn't reported in the bankruptcy as a lease to own etc. and threats she would report to "the authorities" that debtor lied. Smoothed it over with the family and got it straightened out, but. . . who needs that kind of problem? Yeah?
On Mon, Jul 26, 2010 at 4:49 PM, Robert <
robertvitt@vittlawfirm.com> wrote:
In a law school essay situation, Client has already entered into the following transaction:
Debtor and Cousin agree to swap cars (no financing on either car) while Debtor makes up difference in value by making payments to Cousin.
Title will not change on cars until Debtor finishes payments.
I am listing Debtor's original car (in possession of cousin) on Schedule B, and car Debtor is using on SOFA #14.
Cousin is a creditor on Schedule F.
Yes, there is a writing between the parties.
Anyone disagree?
-- R. Grace Rodriguez, Esq.OFF: (818) 734-7223CEL: (323) 304-5496NO EX-PARTE NOTICE VIA VOICE MAIL OR EMAIL: I do not accept e-mail notice for ex parte Applications via voicemail or by email. You must comply with California Law and give notice to a person in my office during regular business hours.
CONFIDENTIALITY STATEMENT: This message contains privileged and confidential information and is intended only for the individual named. If you are not the intended recipient you should not disseminate, distribute, store, print, copy or deliver this message. Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e-mail from your system.
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