About a month or so ago, I gave a family member $10k to purchase a car, because he needed a reliable car for his two hour commute. He's going through some financial trouble, and is now looking to possibly file Chapter 7 Bankruptcy.
After reading a bit about this, I'm concerned that the car could be seized. Is there any way that he could re-gift the car to me before he files bankruptcy to prevent this? What kind of self-reporting would we need to do to make the re-gift completely legal and ethical? The title would be in my name, but he would still need to use the car to get to work.
I understand that generally unloading assets before a bankruptcy would be grounds to disqualify a bankruptcy. I hope that this situation is different, because the money for the car came directly from me (which can be easily demonstrated) only a month ago.
My family member and I both live in California.