selling exempt property before discharge?

[IOIOIO]

There is a 100% likelihood that I will have to sell exempted items in order to pay for living expenses before any possible discharge. I won't need to sell anything until some time after my 341. I've read many threads on that subject using the forum's search. My question isn't "should I sell stuff?" but "what are potential consequences when I sell stuff?"

After exemptions I have left a lot of my California system 2 homestead/wildcard exemption unused. So even if I had sold the stuff before filing, I could still have exempted all the cash. The only complication is that I've sold a lot of stuff over the last two years that I had to list as income in my Statement of Financial Affairs, but which barely factored into my current income on Schedule I because I didn't sell much stuff in the last six months.

So if people have strategies to recommend or consequences to prepare for, please tell. Even if this somehow jeopardizes my discharge, say, if the trustee demands money I'd refuse to give him, it won't make a difference: I'll still have to sell things to pay for food and rent, so in that case I'd have to live with the non-discharge. I'd still be judgment proof, which apparently the collectors can tell because I've never been sued, so would then hope to reach the statute of limitations 13 months from now. Maybe I'd file again down the road, even with the prejudice of a withdrawn previous filing on my record.

[BKParalegal]

After your 341, you are free to sell your stuff as you see fit. Any transactions that are classified as in the normal course of business are exempt, only windfalls (i.e. Lottery, inheritance) would be non-exempt.

Good Luck

[JRScott]

I don't think you are suppose to sell anything prior to closing without Trustee approval. If the items are exempt and you need to sell before that time, if pro se call them up and ask if it is okay and explain why you need to. If you filed with a lawyer have your lawyer call.

Good Luck mate, hope you find a job soon.

[BKParalegal]

I don't think you are suppose to sell anything prior to closing without Trustee approval. If the items are exempt and you need to sell before that time, if pro se call them up and ask if it is okay and explain why you need to. If you filed with a lawyer have your lawyer call.

Good Luck mate, hope you find a job soon.

Not the case, I work for a trustee and my answer came from them

[IOIOIO]

I must say, I like BKParalegal's answer better, but since we have conflicting opinions here, more information is welcome. I wonder if there's a statute addressing this.

Thanks for the encouragement regarding work. I believe I have very good prospects for getting a significant amount of work starting about ten months from now. I'd still pass the means test, so I could file again down the road if forced to.

[HHM]

First, what sort of items are we talking about.

If you are a no asset case and the trustee files his preliminary report of No Asset (which is supposed to be done shortly after the 341 meeting), then you are probably covered. However, keep in mind, the BK estate exists up until the date of discharge and all your assets and liabilities are part of that estate and hence under the control of the trustee.

[IOIOIO]

First, what sort of items are we talking about.

No real property, but items exempted in part or in whole as personal property, and then whatever remains of their value is exempted by the unused portion of my homestead exemption.

However, keep in mind, the BK estate exists up until the date of discharge and all your assets and liabilities are part of that estate and hence under the control of the trustee.

This is what's ambiguous to me. Even though the trustee is now the owner of all my stuff, I retain possession. And the reality is that I'm in full control. I'm trying to figure out the consequences of the worst case scenario where the trustee demands I give him something and puts me in the position of having to either refuse or end up on the street. If prison is the consequence, that would solve my rent problem, but for the most part wouldn't be an enticing option. On the other hand, if I'd just lose my discharge, I could live with that. Any opinions on less extreme scenarios are welcome.

[HHM]

You still didn't specify what sort of items we are talking about, are we talking misc furniture, DVD's, that sort of thing, or are we talking about ATV's, jewelry, etc.

However, prison is NOT the worst case scenario.

[TEW]

I will jump in
I want to sell furniture table saw DVD's so i don't have to move it. and the cash would help
washer/dyer frig

[IOIOIO]

I will jump in
I want to sell furniture table saw DVD's so i don't have to move it. and the cash would help
washer/dyer frig

Since your state and other details of your situation will be needed to answer your question, wouldn't it be best served by getting its own thread so people can focus their attention on your question?

[IOIOIO]

Strictly personal property exempted under 703.140(b)(3), which allows "The debtor's interest, not to exceed $525 in value in any particular item, in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor." Any item I exempted over $525 got the excess exempted via 703.140(b)(5), the wildcard, and I have lots of wildcard left.

I should add that property I sold over the last two years is in the same category. Now counted as income, my average monthly income over those years is still far below the median, probably not more than 150% of poverty. If I still had all that stuff, all except maybe a fraction of it would currently be exemptible.

I suppose what I'm really asking is: can I, as a last resort, withdraw my petition at any time and have no more consequence than an undischarged bankruptcy on my record?

[Pinkie86]

Oh me too!

I have an old washer that I'm looking to scrap. And I finished one of my college classes early so I'm looking to sell the book in a couple of weeks, plus my Pink Razr so I can buy a pink blackberry pearl on e-bay.

I'm going to do some research and see what I can dig up.

[BROKENN]

I'm in also! I would like to sell exempted furniture, lawnmower, office furniture, etc to live off of and not move it to a rental. Basically a garage sale.
After 341, I heard, was OK?

[Pinkie86]

I'm still curious about this one. Anyone know?

[JRScott]

Legally everything until discharge belongs to the bk estate. Meaning you need trustee approval.

Now as BKParalegal says it is possible that trustees in her area don't really do much after the 341, most likely because they can't possibly double check every case. Most likely they'd only check a case if they got wind of something.

As HHM says though if you got the report of no assets shortly after the 341, then you are probably safe to sell exempt items. You can check PACER if such was filed by the Trustee.