Car help needed

[SquirrellyMama]

As I posted a couple weeks ago, my father passed away. When I say their finances were a mess I am not joking. 

My mom has moved in with my sister in CA. For the time being I am holding my mom's vehicle. She doesn't need it nor can she afford the insurance and upkeep. Maybe by next summer things will be different. 

So, how do we do this? Do I have her sign the title over to me? The plates are AZ and I am in IA. Can I renew out of state plates? 

Any thoughts? Kelly

[mommyoffive]

Are you needing to keep the car?  Or can you just sell it?

[SquirrellyMama]

Here is another layer to this question. If she declares bankruptcy and I have her car would that constitute fraud? We planned on hanging on to it because she doesn't need it with my sister and she'll be going overseas for 3 months to stay with my brother's family.

We aren't buying it in case she needs it next year. But, if we are holding it and she claims bankruptcy is she hiding an asset? If she does claim bankruptcy she can't give us the car or sell it to us. I've been reading up on it to make sure nothing is wrong.

I totally want this above board. She owns the car free and clear.

Kelly

[DawnM]

If she signs the title over to you, it is then your car.  You may even want to make a bill of sale for $1 or something just to make it official.  Then you can put the car in your name, including registering it to you in your state since it will be your car.

That isn't hiding anything, she has sold the car and it isn't hers.  She should not file for bankruptcy before she "sells" you the car though.

[mommyoffive]

2 hours ago, Æthelthryth the Texan said:

I don’t know the type of car, and maybe this isn’t even an option, but used car values are insane right now. There is a shortage. Dh and I flip cars regularly and have never seen anything like what is being paid at auctions right now. It might be worth considering Selling it and letting her keep the cash and cross the car bridge later when she is back and needs one and normalcy has returned to the Car market and she can rebuy something. 
 

There has never been a better time in my life that I can remember to trade in a used car or privately sell. (But it is a terrible time to buy right now.) If you didn’t want to bother with private sale you could email several dealerships and see what they would give you. You don’t have to be buying a car to sell a car to a dealership. 

Exactly what I was thinking.   Sell now.  It doesn't sound like anyone needs the car. 

[Ailaena]

Since it’s out of state, she will need to get the title notarized as she signs it!   At least, that has been the case for us in AZ, OH, and CO.

[2squared]

Usually bankruptcy allows the filer to keep certain assets, which includes a vehicle up to $x value (state laws discrete the rules). Assets sold before bankruptcy for less than full market value definitely would be considered fraud, if discovered. You need to have these conversations with a bankruptcy attorney in your mother’s state of residence.