Legal Question in Bankruptcy in Texas

Purchase of used Truck

I have been working with someone regarding purchase of a used piece of equipment.. Finance company states as long as he stays as the garantor on the account they will title the equipment in my name provided i make payments... Question is what will happen if he files bankruptcy? after all of this happens ...will i lose possession of the equipment..


Asked on 8/20/08, 3:13 pm

1 Answer from Attorneys
Donald Dionne Dionne & Dionne

Re: Purchase of used Truck

First of all, I would suggest that you need to discuss this matter in detail with an attorney who practices bankruptcy law and is familiar with Texas law. As we practice in Alabama, there are some differences in the application and interaction between the various state laws and bankruptcy law.

In general, if the financing company titles the item of property in your name rather than that of the guarantor, he would not have an ownership interest in the collateral. As such, there would be nothing of value that would go into his bankruptcy estate, and therefore, neither his trustee nor the creditors could reach the underlying asset.

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Answered on 8/20/08, 7:06 pm


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