If we borrow money from a relative to purchase a vehicle, would this be considered a loan and be exempt from being recaptured?
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If we borrow money from a relative to purchase a vehicle, would this be considered a loan and be exempt from being recaptured?
A relative lent us money to buy a newer vehicle. We are paying them back. Is this considered a loan on the vehicle and is it exempt from being taken by creditors?
Asked on March 5, 2012 under Bankruptcy Law, Idaho
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The money borrowed from a family member that you have written about to buy a car is a loan. Assuming there is a judgment against you, and assuming the vehicle is your primary vehicle for travel and is worth less than $8,000, it would be exempt from levy by judgment creditors under most state's statutes in this country.
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