Selling assets

You might want to consult an attorney about that....get a free consultation.

You can go for a free consultation from an attorney.

No. The Admistrating judge will disperse fees to the filing atty. Technically,one cannot sell any asset 12 ,it may be now 18 months before filing BR. it coulld disqualify your BR or the court could go after asset if sold

For chapter 7, you have to pay the attorney up front. Only in chapter 13 can you include the attorney costs.

[Are you sure about this? It doesnt gibe with some other things Ive read about BK. One attny I consulted with even broaches the subject.

What ive read is basically if you sell it it needs to be sold at "market value" whether sold to an insider or an arms length transaction. An insider transaction of course would garner more scrutiny but if its a legit sale then its a legit sale and the proceeds are to be considered part of the estate. What you DO with the money of course will be scrutinized as well.

If you sell a car and use the money to go on a cruise then file BK later then of course the trustee will be all over that and demand that the equivalent amount of money be put into the BK estate (and thats your BEST possible outcome, the others are much much worse).

Mine just told me that if I sell something its best to wait 9p days before filing if possible and be ready to explain to the trustee what became of the funds. She said using it for required living expenses was pefectly ok as well

if you haven't filed or consulted an attorney, then you are free to do whatever you please with your assets. depending on how much it is im sure there will be no harm in not addressing what you sold as they were your personal possessions. now if you sold a $10k car, then yes im sure that wouldn't go over to well!

"if you haven't filed or consulted an attorney"

Not sure this is right. Filing yes, consulting no. At least according to my attny. They just told me if I sold anything wait 90 days before filing as thats a reasonable period in which to mull over filing and try to avoid it by selling assets/paying creditors if you wish.

And of course I'd need to show where the money went and that I sold it at real value (either get an appraisal or less safely use something like KBB or Edmunds). Gotta love trustees going after their commissions lol.

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Just found this site and am looking through some posts. I must give you the correct information as a number of you are totally confused.



You can sell anything you want to sell prior to filing so long as you sell it for fair value and disclose the sale on question 10 of the Statement of Financial Affairs. If you are selling a large ticket item then you need to keep track of how you spend the proceeds. You cannot hide the $$, give it to your cousin, your neighbor, your friend. You must live off the $$ - and yes, you can use the $$ to pay your bk attorney.



Selling items has nothing to do with when you file, what chapter you file, why you file, how you file or anything other than selling the item for fair value and disclosure, disclosure, disclosure.