selling exempt property before discharge?

[TEW]

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

Pinkie
My lawyer told me to wait 10 days after the meeting then sell the stuff you don't want.
http://en.wikipedia.org/wiki/Real_property

I looked up Real property

[Pinkie86]

Awesome. Thanks JR and TEW!

[IOIOIO]

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.

Yeah, the Nolo book says on page 205: "While your bankruptcy is pending, do not throw out, give away, sell, or otherwise dispose of the property you owned as of your filing date--unless and until the bankruptcy trustee says otherwise. Even if all of your property is exempt, you are expected to hold on to it, in case the trustee challenges your exemption claims."

So things look promising, but not guaranteed. The Nolo book does imply that after the 341, you're ok, but not legally free until the discharge. So back to my question about the consequences of disobeying the trustee if he demands I turn over property I've exempted. If it's just a non-discharge, or if I can withdraw my petition in the face of a demand I'm not willing to meet, that would be good to know.

[flower04]

SO, assuming previous posters are correct, you can sell stuff after 341.

Is there a fixed amount that you are allowed to sell? For example, maybe the trustee wouldn't care about up to $500 but would care if the amount was $1000.

I'd love to know the answer to this question as well.

[IOIOIO]

SO, assuming previous posters are correct, you can sell stuff after 341.

Is there a fixed amount that you are allowed to sell? For example, maybe the trustee wouldn't care about up to $500 but would care if the amount was $1000.

I'd love to know the answer to this question as well.

Whoa, the accumulated opinion looks to me like you're not legally entitled to sell after the 341; it's just that the trustee generally doesn't care. In that case, there's no set amount that's "safe," only people's actual experience with trustees, and I wonder how much that depends on the state. Given that, I wonder if it's better to simply sell as needed and then respond to the trustee if he finds out and objects.

[TEW]

Yeah, the Nolo book says on page 205: "While your bankruptcy is pending, do not throw out, give away, sell, or otherwise dispose of the property you owned as of your filing date--unless and until the bankruptcy trustee says otherwise. Even if all of your property is exempt, you are expected to hold on to it, in case the trustee challenges your exemption claims."

So things look promising, but not guaranteed. The Nolo book does imply that after the 341, you're ok, but not legally free until the discharge. So back to my question about the consequences of disobeying the trustee if he demands I turn over property I've exempted. If it's just a non-discharge, or if I can withdraw my petition in the face of a demand I'm not willing to meet, that would be good to know.

You mean you are going to not hand over something the trustee wants? Your case may get dismissed with prodigious. Fines jail not much.

[IOIOIO]

You mean you are going to not hand over something the trustee wants? Your case may get dismissed with prodigious. Fines jail not much.

Right. If I'm in a position where selling stuff is the only way I have left to pay for rent and food, then I will not hand the revenues over to the trustee. I could live with not being discharged, but I wouldn't want to commit a crime. If the trustee puts me in that bad position, I'd prefer withdrawing my petition on my own initiative than defying the trustee.

[TEW]

Right. If I'm in a position where selling stuff is the only way I have left to pay for rent and food, then I will not hand the revenues over to the trustee. I could live with not being discharged, but I wouldn't want to commit a crime. If the trustee puts me in that bad position, I'd prefer withdrawing my petition on my own initiative than defying the trustee.

your thing here says your a no asset case what do you think the trustee wants

[IOIOIO]

your thing here says your a no asset case what do you think the trustee wants

All my property is exempted. But, for example, what if I sell exempted items and get $1000 for them after my 341?

[TEW]

If it were me I would sell it and keep the receipts you need the money for food and shelter so you can show what you used the money for.
You are converting something that is exempt to something that is not. But you have to live.