Jump To Navigation

Car is in my name, but son makes the payments


January 05, 2009
Topic: Bankruptcy

Recently a potential client brought up a point which is a common issue we hear about from clients.  The client has a son whose car is in the client's name, but the son makes the payment.  The client believed that despite the fact that the car was titled in the client's name, a trustee in a bankruptcy proceeding would not be able to demand equity from the vehicle or sell the vehicle to raise money for unsecured creditors because the vehicle was being used by the son. 

This simply is not the case.  If the vehicle is titled in a client's name, the client owns the vehicle.  When a bankruptcy estate is created, the trustee takes possessions of all of the debtors possessions.  Additionally a debtor must disclose all transfers that were completed within a year of the filing of personal property.  Therefore, the vehicle likely will be part of the bankruptcy estate.  This, coupled with the fact that having the vehicle in client's name exposes the client to liability if the vehicle is in an accident, points out the fact that titling a vehicle in the parent's name is not a good idea. 


Certified | The Florida Bar | Criminal Trial Law

Arnold Law Firm, LLC

6279 Dupont Station Court
Jacksonville, FL 32217

Phone: 904-731-3800
Fax: 904-731-3807

E-mail Us | Map & Directions