Vehicle Question

[ready2fileTX]

Hi Everyone. I have been browsing the forums and have learned quite a bit.

However I have a question that I could not find the answer to from searching.
My wife and I have decided to file bankruptcy in the next month or so. We sold our business truck(truck a) and bought a personal vehicle(truck b) with the cash from the business vehicle.(truck a) We sold a for 100 more than we bought truck b for.

This new vehicle we just bought is our only one. We are now thinking that they may possibly take it from us since we did the sale to quick to filing date or just because we went and sold business truck to get a personal vehicle.(business truck was old and needed new engine--new one is alot better and smaller)

One more question--If you sell something but turn around and buy something else with the cash-do they include that as income for the previous 6 months?

This forum has been such a huge help to my wife and me. So I would like to say thanks to everyone!

John

[ready2fileTX]

Hi Everyone. I have been browsing the forums and have learned quite a bit.

However I have a question that I could not find the answer to from searching.
My wife and I have decided to file bankruptcy in the next month or so. We sold our business truck(truck a) and bought a personal vehicle(truck b) with the cash from the business vehicle.(truck a) We sold a for 100 more than we bought truck b for.

This new vehicle we just bought is our only one. We are now thinking that they may possibly take it from us since we did the sale to quick to filing date or just because we went and sold business truck to get a personal vehicle.(business truck was old and needed new engine--new one is alot better and smaller)

One more question--If you sell something but turn around and buy something else with the cash-do they include that as income for the previous 6 months?

This forum has been such a huge help to my wife and me. So I would like to say thanks to everyone!

John

anyone know anything? I am just stressing out thinking they may want it for some reason. Surely they would not take our only vehicle?

[newimges]

You will have to claim what you sold the truck for with your filing if it was within a certain time period which I believe is 2 years. You will have to list who you sold the truck to. We had to claim a camper we sold 18 months before we filed.

You will also need to know how much your car is worth and if your allowable exemption is covered there. If you paid cash for the car - it might not be.

Hope that helps. Good luck!

[ready2fileTX]

You will have to claim what you sold the truck for with your filing if it was within a certain time period which I believe is 2 years. You will have to list who you sold the truck to. We had to claim a camper we sold 18 months before we filed.

You will also need to know how much your car is worth and if your allowable exemption is covered there. If you paid cash for the car - it might not be.

Hope that helps. Good luck!

Thanks! If we sell it the same month we file though it does not matter, correct? So basically if we decided to file in Jan--since only the 6 months preceding the bk matter and not the actual month--we would be fine?

We bought it for 3900 so I think we should be ok with TX exemptions.

[StartingOver08]

I don't believe that is correct. I had to provide my vehicle registrations and insurance policies for every vehicle for the past two years. You need to check with your attorney to make sure ...but if you don't show the transaction I believe it could be a problem with the Trustee. IMHO

[Tbornetun]

This is "normal course of business". You sold a vehicle that was breaking down to buy another, spent the additional $100 on gas for all they know. As long as the new vehicle is able to be exempted, you are fine. Stop stressing about it. The sale does need to be listed but then you will just need to provide the trustee proof of the purchase of the new vehicle with the money. They WILL accept that and move on.

[Trixie007]

This is "normal course of business". You sold a vehicle that was breaking down to buy another, spent the additional $100 on gas for all they know. As long as the new vehicle is able to be exempted, you are fine. Stop stressing about it. The sale does need to be listed but then you will just need to provide the trustee proof of the purchase of the new vehicle with the money. They WILL accept that and move on.

My attorney confirmed this also. We sold DH's truck for 15k last year, spent 3k plus about 600 in repairs on the new vehicle, and used the other 12k for tuition and living expenses. He said this was "normal course of business".

[ready2fileTX]

My attorney confirmed this also. We sold DH's truck for 15k last year, spent 3k plus about 600 in repairs on the new vehicle, and used the other 12k for tuition and living expenses. He said this was "normal course of business".

That makes me feel so much better. Thanks so much for sharing!

[ready2fileTX]

This is "normal course of business". You sold a vehicle that was breaking down to buy another, spent the additional $100 on gas for all they know. As long as the new vehicle is able to be exempted, you are fine. Stop stressing about it. The sale does need to be listed but then you will just need to provide the trustee proof of the purchase of the new vehicle with the money. They WILL accept that and move on.

Thanks for the help. Very much appreciated