Florida Attorney Jonathan Alper discusses in his Florida Bankruptcy blog several important considerations if you are thinking about turning to a family member to help you buy a car prior to filing bankruptcy.  In a scenario I have seen on occasion, Jonathan describes meeting with a client who had asked his parents to help him buy a car.  The parents bought the car, but titled it in the debtor (son's) name and never recorded a lien to secure their loan to the son.

In this situation, the "loan" from the parents is unsecured (no different than a credit card) and, worse, the son cannot include the monthly car payment as a secured debt for means test purposes.  For bankruptcy purposes, therefore, this car is owned free and clear by the son/debtor and it counts as an asset.

The big picture point here, I think, is that if you are thinking about filing for bankruptcy, you should never take drastic action like buying or selling a car or house without first speaking to your lawyer. Even if those recent transactions can be reversed, they may still count against you in Bankruptcy Court.

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