Will I lose my Car if going bankrupt ?

[ajoselondono]

What is the name of your state (only U.S. law)? CT, Hi, My mother in law used to have her own business and she was doing just fine but you know how it is, one thing led to another and she end up loosing her business and owing a huge amount of money. Se has a house that she wants to save and she used to have a car, a Mercedes Benz. Since she wasn’t able to keep up with either the car or the house she was going to give the car back to the dealer.
I told her, I’ll give you two thousand dollars (I didn’t have anything else) and I’ll keep paying for the car until the end and the car will be mine on Feb of 2010, that’s the moth of the last payment.
So I’ve been paying the car for almost 8 months now; the problem now is that she keeps doing badly and she wants to file bankruptcy. My question is, since the car payments are up to date; there is any chance they’re going to be able to take away her car (my car now). If I pay in full, is that going to affect her? Should I do the legal papers and purchase the car from her as it is. What should I do?

[bigun]

You and your MIL have a huge insider transaction issue going. Do nothing until you 2 speak with an attorney. Don't transfer the car. The trustee has the authority to reverse the transaction.