Rental house to much equity

[yukon]

We are going to file Ch. 7 and have a rental house that has about 40,000 in equity. Told there was no way to keep. Question, could we sell it before filing at FAIR market value to my father and take some of the equity and do repairs on our primary residence such as new hot water heater, paint, and maybe new tires for the car. At least we could use a little of the equity up.
We have a construction business as an S corp and have almost 200,000 in outstanding equipment loans and 50,000 in CC debt. Almost no assets in the business. We are going to get an attorney and consult with them. But thought I would run it by you guys. Thanks.

[fltoo]

You can of course sell the house for fair market value to raise money to live on. But, if you are going this route, I would not consult a lawyer about BK.

You never know, the trustee could ask you when you first consulted a lawyer about BK.

Sell the house, use the money, wait awhile and then decide to file for BK.