Should I sell our plasma tv before chapter 7?

[sofarindebt]

I am not going to be filing until next spring/summer, but we need money to pay our back irs taxes and we could probably get $1500 for it plus our surround sound, which is less than one year old.

would we be required to pay this money back to the trustee?

[HHM]

Probably not, since you are paying the IRS which is a priority creditor, thus, it won't matter. Also, you wouldn't have to pay it back...the trustee goes after the creditor that you paid to get back preferential payments, they don't go after you.

Quick question, did you buy the Plasma TV and surround system on credit?

[CindyLou]

where do you live???

[sofarindebt]

Yes, we bought it with a credit card

but it will be over one year by the time we file that we purchased it. Plus, if we pay our IRS bill now, the 90 days will have passed and they can't be a priority creditor, right?

Like I said, we are not filing until June 07

[CindyLou]

the IRS is always a priority creditor. 90 days refers to a preferential payment. But preferential payment can be made to a priority creditor, I believe. Also, I was inquiring where you live so if you do decide to sell that TV. I know someone who would be interested. I'm in southern CA.

[LostOne0069]

SoFar, I think you meant to say that paying the IRS couldn't be an "insider" or "preferential" payment... and yes, this is correct.

For instance, I sold my motorcycle about 10 months ago and used the $5000 for living expenses... The Trustee at my 341 never even asked me what I used the money for. If you sold the TV now and paid the IRS debt, then next spring filed BK, you'll be just fine.

[emoney]

IRS is very willing to work out a payment plan on balances.
Thanks,
emoney