u/CyberpunkNarwhal

We are in Texas and my spouses parents will most likely be declaring bankruptcy next year. The vehicle she currently uses is in parents name and was meant to be a graduation gift, but you know bankruptcy.

We would like to buy the car for the remaining loan amount (slightly more then the vehicle is worth.), but don't want to risk the car being clawed back. To my understanding though if we legally purchase it and pay off the loan in full it can't be because we paid above value?

My spouse's parents are actively planning on filing bankruptcy within the next few months. The vehicle is still under her mother's name with an outstanding loan balance.

We were originally planning on paying off the remaining loan balance and having the mother transfer the car to my spouse, but after researching I believe the car could be clawed back during the bankruptcy proceedings.

Wanted to reach out to the community and see if they could comment on that, we are in texas if that matters for the analysis.