WWYD?

FutureHernandez

My MIL came over last night boohoo crying that she going to go bankrupt.  She said she can't afford her bills.

Well, she said she needs our help.  She has a 2002 Altima that is paid off and wants to put the deed under our name so that they don't take it away from her. 

I'm kinda scared of putting a car under our name, meaning the insurance would be under us (MIL being one of the drivers).  She's not a reckless driver but shit does happen.

I feel bad for her but I'm not if this is a right move for us.

WWYD?

heather_09_15_07

I didn't think they could take your house or your car in a bankruptcy. Unless she has a few cars?

weelass24

If she doesn't owe anything on it, why would they "take it away"?  Is she going to file 7 or 13? 

pnwjess

That really sucks that she's putting you into that position. If you do it, I would make it very clear that you will not be paying the insurance. If anything happens, you put the car right back in her name.

FutureHernandez

heather_09_15_07:

I didn't think they could take your house or your car in a bankruptcy. Unless she has a few cars?

I thought you were allowed to keep your home and your car.  The car is only worth a couple thousand dollars, so I don't know why they would even take the car.

 

liz_e34

heather_09_15_07:

I didn't think they could take your house or your car in a bankruptcy. Unless she has a few cars?

I think it depends on the state as to whether they can take your home and/or car. 

That is a difficult position to be in, but I think if it were me I would probably do it...maybe. 

FutureHernandez

weelass24:

If she doesn't owe anything on it, why would they "take it away"?  Is she going to file 7 or 13? 

She has two homes.  One is rental and the other she lives in.  She plans on letting go the rental.  I'm not sure if this makes a difference in which one she files.  Oh, DH just told me this morning that this is not the first time she has filed bankruptcy!! 

weelass24

This is what I would do.  Ask her if she has a BK attorney.  If she is going to file, most likely the BK court is going to force into a 13, not a 7.  When you are in 13, you repay the debt over a period of time (say 5 years).  Chapter 7 wipes the debt out and takes about 5 or 6 months to complete.  When the government changes the BK laws a couple of years ago, they made it very difficult to go to a 7 right away. 

If she owed on the car and included it in a chapter 7, they would take it.  If she files 13, she would just include it and continue to pay.  Since she owes nothing, it should not be an issue.

I would go with her to see the BK attorney she will be using, then consult one of your own as well.  You do not want anything with your name on it being dragged into a BK.

 

heather_09_15_07

I'd definitely talk to an atty before I agreed to anything because I really don't think they are in the practice of taking away a car in a bankruptcy.

 Even then though, if she's filed before, I don't think I'd take over the car. But I'm evil like that.

weelass24

FutureHernandez:

weelass24:

If she doesn't owe anything on it, why would they "take it away"?  Is she going to file 7 or 13? 

She has two homes.  One is rental and the other she lives in.  She plans on letting go the rental.  I'm not sure if this makes a difference in which one she files.  Oh, DH just told me this morning that this is not the first time she has filed bankruptcy!! 

Sounds like she's trying to go 7.  They may not let her to that.  When was the last time she filed?

StephanieBride1

FutureHernandez:

weelass24:

If she doesn't owe anything on it, why would they "take it away"?  Is she going to file 7 or 13? 

She has two homes.  One is rental and the other she lives in.  She plans on letting go the rental.  I'm not sure if this makes a difference in which one she files.  Oh, DH just told me this morning that this is not the first time she has filed bankruptcy!! 

I don't know if I would be inclined to help in that way. I might help her find a  financial planner and pay for a few hours. But taking on others financial responsibilities is too much for me.

weelass24

Oh, also, if she goes 13, she will need a letter from the trustee in order to take on any more debt, if she needs it.  So, if the car dies and she needs a loan to get another, the trustee may not approve it.  Most banks will not give a loan to an open BK, and if they do it will be at the max interest rate.  Probably somewhere around 18-20%.  Guess who will be asked to finance that? 

liz_e34

Yeah - I agree with some of the pp's. Knowing that she's already filed before, I think I would be much less inclined to take on any of her responsibilities.

FutureHernandez

weelass24:

Oh, also, if she goes 13, she will need a letter from the trustee in order to take on any more debt, if she needs it.  So, if the car dies and she needs a loan to get another, the trustee may not approve it.  Most banks will not give a loan to an open BK, and if they do it will be at the max interest rate.  Probably somewhere around 18-20%.  Guess who will be asked to finance that? 

Over my dead body!  That's where I draw the line.  I'll put the insurance under our name and as soon as she gives us shit about not being able to afford it we take the car away and sell it. 

weelass24

She'll have to "sell" it to you in order to register and insure under your name.  Make sure you have a set of keys and the title in your name only locked away somewhere.

ozgirl96

I'm afraid this will happen to me someday. My MIL is awful with money, and has already filed for bankruptcy once.  Her parents (who are in their 80s) pay off her credit cards each year, have bought her a house, etc. However, obviously they won't live forever and then she could turn to us.  I know I would feel bad, too, but she got herself into that position, right? It wasn't some major illness or something, right?  I wouldn't do it.  Not based on her history. I just couldn't do it.  Actually, my DH used to have a credit card with his mom, and I made him cancel it. I didn't even want that risk.  I am presuming you are a regular middle class person, too.  I mean, if you are rolling in money, then, yeah no worries, but I doubt that's your position.

FutureHernandez

She's a real douche of a person.  But she is still his mother.  She needs a car to get around and thank God that car is paid off.  If it was not paid off I would say hell no way.  But it's just car insurance under our name and worse comes to worse we can cancel the policy.

I'm still not ok with this and DH is going to call her tonight to see when she is going to see the attorney. 

dmogmo

I wouldn't do it.

staycee

I wouldn't take on that liability.   If she ever hits or injures anyone in that car - you could be sued as the legal owner.   Have fun!

Newspaper Articles

ditto Staycee.  I wouldn't want the liability.

Q Q

I wouldn't do it.  So much could go wrong to make things worse.

Alex17

staycee:

I wouldn't take on that liability.   If she ever hits or injures anyone in that car - you could be sued as the legal owner.   Have fun!

Ditto. I work in insurance. From that standpoint this is NOT a good idea. God forbid something happens and she kills someone and is at fault for the accident.

It 's on your insurance policy, not hers. Which means you are screwed trying to get insurance for like 10 years.

 

Mr&MrsX

Personally I wouldn't do it. I don't like doing things that are in any way out of the ordinary, also, I don't trust my MIL.