Sold a gun and trailer prior to filing

[BrokeJack]

I need someone's opinion. We filed bankruptcy last week. I sold a gun ($180) and a utility trailer ($380) within a week prior to filing my bankruptcy because we desparately needed the cash.

I woud have just left them off my bankruptcy, but I had forgotten that when I had my initial consultation with my lawyer several months ago I had told him that I had these items and put the value at $100 each. When I went to sign the petition papers, my lawyer was insistent that we should have no recent activity that would raise flags so when he asked if we still had the the gun and the trailer, I said yes. I reaIlize now that I should have just excluded them, but at the time, I froze because I was given the impression by my lawyer that any type of activity including selling items so close to filing could potentially jeopardize our whole bankruptcy.

My question is if these two items are listed as exempt personal property in Schedule B on our Bankrupty and their value is only listed at $100, what are the chances that they will be even be addressed by the Trustee or the judge? Should I go back to the lawyer and say we had sold them for cash prior to filing and didn't have them in our possession at the time of filing, but I'm afraid that by doing that, our case could get thrown out. What is our best option at this point?

[StartingOver08]

It is my opinion you should own up to the mistake with your attorney right away so he can amend the petition prior to your 341.

At the 341 the Trustee will ask, under oath, if everything is true and correct. This is a fixable error that could bite you if you fail to fix it. I know it is exempt property, but you want to make sure that your petition is correct. I think the values are small enough that it will be an easy fix for your attorney too.

[Flamingo]

Call your attorney and explain. Always be open and honest with your attorney because if you are not and something arises, and the attorney is not aware cause you didn't come clean, delays and problems can occur.

[OhioFiler]

What did you do with the cash you got in exchange for the gun and trailer? I suspect you traded one exempt asset for another. I wouldn't worry about it. Not for $500 anyway.

Tell them you sold them the evening you filed if they ask.

[Tom_Mi]

My opinion is, have the Atty update the paperwork and/or tell the Trustee at the 341 and let it be.

You probably used the cash for groceries or other perfectly acceptable things so i wouldn't sweat it.

[fltoo]

I would call the lawyer and amend ONLY because you don't want to be nervous about and thinking about this mistake when you go to your 341.
If you are not the nervous type, I would do nothing.

It really is minor. You can sell items before filing as long as they are for market value and you use the money to live on. No luxuries. I also kept receipts just in case.

[whipster1]

Not enough money to worry about unless you are right on the edge, be sure to be able to account where you spent it, but they were listed as assets so they need to be removed from the asset schedule.