Keeping a car in bankruptcy – how not to buy a car for your child

When I consult with Orlando families who are considering bankruptcy to resolve their financial crisis, they are often interested in knowing whether they can keep a car, truck, motorcycle, or other motor vehicle that they believe is owned by their children out of the bankruptcy case.    Many parents purchase cars for the benefit of their children.  It is also common for a grandparent to buy a car for  a grandchild.  In each of these situations, the parent keeps the car titled in their name, usually to avoid the high cost of insurance for the child.  While they may save money on insurance, it is likely that in most cases the car will be considered to be owned by the parent, to the child, and the trustee will demand that it be surrendered as property of the bankruptcy estate.    Continue Reading