Author: Spiros Avramidis
There are many recurring themes in chapter 7 bankruptcy filings. One in specific is where a debtor discloses his interest in a vehicle, but either in the petition or the Section 341 Meeting of Creditors states that he holds only bare legal title in the vehicle; his child, spouse, or some other relative is the “real” owner. The story usually follows that the vehicle is in the debtor’s name for convenience or insurance purposes (oddly enough, the debtor usually claims an exemption in the vehicle, which is contrary to the position that he holds only bare legal title). For numerous reasons this “setup” will likely not prevent the vehicle from becoming bankruptcy estate property and administered by the chapter 7 trustee.
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