Sold Jewelry to Pay BK Attorney

[bbgstartingover]

Hi Everyone!

First of all, I want to tell you all how much comfort and help this forum has been these last few months as I was considering filing for Ch. 7. THANK YOU from the bottom of my heart!! You truly will never know what a difference you've made and will continue to make as I move forward with this decision.

I am in the process of filling out a free-consultation questionnaire for a BK attorney. One of the questions is have you transferred or sold any assets? I sold some of my mom and dad's jewelry twice earlier this year which I used to pay my bills, including my cc payments. The total from both times came to about $2,300. Last week, I sold the last of the jewelry for $601, which I was planning to use to pay/retain my BK attorney. I received $101 in cash and $500 in a check. Is there a problem with me depositing this money into my checking account and then writing my lawyer a check when the time comes to retain him?

I searched the forums before I posted, but I didn't get a solid feeling one way or another. And I don't want to do anything wrong or anything that will hinder my case after I file. I just don't have the money right now to pay the BK attorney, and using this money would help me to at least retain him and get the ball rolling.

Thanks in advance for all your help!!

bbgstartingover

[rrockinggramma]

the best person to ask is your lawyer. However if you can verify what you spent the money on, for bills etc you might be ok. Chapter 7 is a snapshot of your finances on the day you file. They look back 6 months for income and preferential payments. On your questionaire, as they are no longer assets you possess, are you required to list them?

[keepmine]

You are not the first person who sold jewelry and other assets to pay routine living expenses and bk legal fees. You've done nothing wrong.

[CindyLou]

Just keep a paper trail where the money is going. Putting it in your account and showing where it goes it actually better. What you don't want to happen it to sell it and not be able to show what you did with the money and appear to have hid the money. The only thing the trustee is ever concerned with is a debtor trying to hide money from the court, not a debtor selling assetting to pay bills! That is normal. You are only doing what you have to do to survive and go through what is a legal process. I am sure selling your parent's jewelery was a very difficult thing to do!

[SinkingFast]

Like Cindy said,......... Document, Document, Document.

I sold jewelry too, to pay bills. I saved the receipts from the sales and gave those to our attny when we got ready to file.

Our attny matched copies of the receipts with copies of our bank statements to show the Trustee the flow of money into and out of our bank acct.

You shouldn't have any problems if you explain what you did with the money and have paperwork to document the flow of cash.

It's people that have assets "mysteriously" disappear that have problems with the Trustee and/or UST's Office.

[JRScott]

Just be prepared to show receipts and explain how the money was used. As long as you can do that there will be no real problems.

[CATCHMEIFYOUCAN]

The Trustee never questions where you got the money to file. Isn't that odd?

Best to you, JM2C (Just My 2 Cents) Catchmeifyoucan