Selling Classic car before BK

[cag]

[pcn]

Are there ways to "buy it back" from the trustee, or is that only in a ch13?

[keepmine]

Will the $35K make a dent in the debts you wish to discharge?

[fltoo]

Sell the car now for fair market value. Use up as much money as you can on living expenses, car and house repairs, food, pay your car insurance for the year, etc. Don't make any luxury purchases and keep your receipts. I did this and had no problem at all.

Put off filing as long as you can, maybe even in Jan. 2010. The problem is the transferring of assets to hide them, not selling an asset at fair market value and using the money to live on.

[cag]

Sell the car now for fair market value. Use up as much money as you can on living expenses, car and house repairs, food, pay your car insurance for the year, etc. Don't make any luxury purchases and keep your receipts. I did this and had no problem at all.

Put off filing as long as you can, maybe even in Jan. 2010. The problem is the transferring of assets to hide them, not selling an asset at fair market value and using the money to live on.

[Help!]

In my opinion, you're taking a giant risk selling the car regardless of how you spend the money. At the very least, the proceeds from the sale could be counted against you as income. Depending on the timing (e.g., if this happens within a year of your filing), this could be seen as a fraudulent conveyance of an asset. You are essentially taking a non-exempt asset and converting it to cash for your own use and benefit. Be very careful.

[pcn]

How is that different than whittling down a savings account, paying bills or otherwise, before filing? He would be trying to make things work until his resources were gone and he absolutely had to file.

[BornAgain]

In my opinion, you're taking a giant risk selling the car regardless of how you spend the money. At the very least, the proceeds from the sale could be counted against you as income. Depending on the timing (e.g., if this happens within a year of your filing), this could be seen as a fraudulent conveyance of an asset. You are essentially taking a non-exempt asset and converting it to cash for your own use and benefit. Be very careful.

From HHM:

Sale of an asset is NOT income for purposes of BK.

You liquidated an "asset" and now you need to spend the cash (an asset).

[cag]

Thanks HHM and others for the input

[fltoo]

In my opinion, you're taking a giant risk selling the car regardless of how you spend the money. At the very least, the proceeds from the sale could be counted against you as income. Depending on the timing (e.g., if this happens within a year of your filing), this could be seen as a fraudulent conveyance of an asset. You are essentially taking a non-exempt asset and converting it to cash for your own use and benefit. Be very careful.

Selling the asset for money to live on is not a fraudulent transfer and it is not considered income, but it must be sold for market value so it doesn't look like you are hiding an asset by selling it for 1.00 to your cousin.

There really is no risk as long as you are using the money to live on. Again though, although you probably won't be asked, I would save all receipts.

Don't prepay your insurances, just pay the annual premium for the one year.

[cag]

Selling the asset for money to live on is not a fraudulent transfer and it is not considered income, but it must be sold for market value so it doesn't look like you are hiding an asset by selling it for 1.00 to your cousin.

There really is no risk as long as you are using the money to live on. Again though, although you probably won't be asked, I would save all receipts.

Don't prepay your insurances, just pay the annual premium for the one year.

Well, my insurance comes up the 1st of Aug and I'm planning on filing the 1st of Aug ..so that should work out ok!!...right??
What about my other expenses above ...do you think they'll be ok

Thanks fltoo

[Overmylimit]

What kind of car is it? Muscle?

[Help!]

I beg to differ with HHM on this point. In our case, income was defined as "money received from all sources". Money gained from the sale of an asset (even on craigslist) absolutely can be counted as income.

[cag]

What kind of car is it? Muscle?

69 Vette, L46, 350CU/350HP, T-Top, 4 speed...frame off restoration. All matching #'s...power windows, brakes etc.
Paint job alone was 10K and 58,000 original miles on her

[vicmost]

I just happen to have 35k left on a few credit cards......
Unfortunately I don't think this will help out with my bankruptcy

Sorry to here you're going to lose such a sweet ride...I sold my 68 Pontiac Firebird convertable in 2007...

I just sold my boat Saturday but I got the approval of my attorney first...
Unfortunately I didn't make any money, I just got out from under it.....I will be filling in a few months