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polarbear89 · Mar 8, 2011, 02:02 PM

I have a car registered in my trust name.. I signed a promissory note to my son for the car however the note said nothing about it being taken out of the trust name. I need to cancel this note and reclaim the car as the car still remains in my Trust and I am the trustee. I have filed bankruptcy and could use these monies to help pay bills but he will not cooperate. The bankruptcy courts would want this luxury car to apply towards bills but I would prefer to cancel the note. His atty told him that as long as it is in the Trust name bankruptcy cannot have access and two if I take it out of the trust name he goes to DMV and claims the car. He now wants to sue me... what can I do

AK lawyer · Mar 8, 2011, 02:38 PM

Originally Posted by polarbear89

I have a car registered in my trust name..I signed a promissory note to my son for the car however the note said nothing about it being taken out of the trust name. I need to cancel this note and reclaim the car as the car still remains in my Trust and I am the trustee. I have filed bankruptcy and could use these monies to help pay bills but he will not cooperate. The bankruptcy courts would want this luxury car to apply towards bills but I would prefer to cancel the note. His atty told him that as long as it is in the Trust name bankruptcy cannot have access and two if I take it out of the trust name he goes to DMV and claims the car. He now wants to sue me...what can I do

Who are the beneficiaries of this trust? If they include persons other than yourself, you would be in breach of your fiduciary duties if you pay your personal bills from the sale of the car.

And if you are the only beneficiary, your attorney was mistaken. Did you mention the trust in your schedule of assets? Did you tell the trustee about it?

If you filed bankruptcy, the note would have been (or will be) discharged, unless for some reason you reaffirmed it. So if he sues you you would simply plead that bankruptcy discharged the debt.

excon · Mar 8, 2011, 06:25 PM

Hello p:

You sold your son a car. He didn't default on the deal, so you can't cancel it, even if you NEED to.

excon

Fr_Chuck · Mar 8, 2011, 07:23 PM

Agreed, if you sold him the car, and there is a written loan document, he merely has to pay the trust or the court the terms of the note,

Unless he violates the term of the note it can not be just stopped because now it is not a good deal.

So more info as to what type of deal you made with the son