Legal Question in Bankruptcy in Texas

First, Texas is a community property state. Transfering titles to your spouse accomplishes nothing. Second, it is fraud and yes the trustee's routinely pull dmv records.

The biggest mistake people make is trying to transfer property. Don't do it!!!! It makes things much worse. The trustee will recover the transferred asset and then you will not be able to exempt it at all.

If you consult with a lawyer now you may be able to exempt both cars. It depends on the other assets you own. Also, not sure why you would wait 6 months to file.

Also curious as to why you would have charged 12 thousand dollars right before being laid off. That too creates a huge issue and may result in that debt not being discharged.

Since you'll probably get to keep the cars anyway, there is no point in doing what you've described.

Bankruptcy doesn't work like that. The court is not hunting you down to see what they can take from you. Instead, the court has a list of stuff that you are allowed to keep. They let you keep all the stuff on that list because it will help you get back on your feet. Cars are on that list.

In Texas, there are two different lists-- the "federal exemptions" list and the "state exemptions" list. Different items are on each list and you get to pick which list you want to go with. After you sit down with your lawyer and go through all of the options and types of property you own, you can make the choice.

Shedding property now before you've had that conversation with your attorney is a bad idea. If you "sign over" property without getting paid the fair market value of it then you'll probably make a bad situation way worse.

How bankruptcy works-- http://www.214bankruptcy.com/how-bankruptcy-works/

Rustin Polk

Dallas Bankruptcy Lawyer

www.214bankruptcy.com

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