What to do about a pending asset...

[brokenomore]

I have been planning to file chapter 7 because of massive consumer and medical debt (over 80k). We had filed chapter 13 a couple of years ago, but it was dismissed, as I was unable to keep up with the plan. We eventually lost our home, and are now renting.

Years ago I filed for a construction permit to build a small tv station. The FCC moves very slowly, and it seemed it would never be granted, but it appears that it will soon be granted afterall. A construction permit is good for three years, and can be transferred or sold to someone else.

Since I am not of the mind now to be a broadcaster and cannot afford to build a station, I would sell the construction permit to another broadcaster.

I probably could get $20,000 to $40,000 for it (more likely on the lower end of this range).

But as of this moment, I have nothing to sell. It's just an application, and it will not be the actual permit for months, or possibly a year.

If I were to file chaper 7, would I have to declare this as an asset? Again, it's not an asset yet, as it's still in the process of being granted. Also, once granted it is not a liquid asset and can be sold at just about any price, or even given away.

Is there a way I can do this and not lose it to the BK court? I don't want to hide it, of course, but I don't want to give up what I don't have to, either.

I suppose I could wait to file it until afer I sell it, but I would have $20k to get rid of.

What gripes me about the BK process is that in my state we could have kept $40k of equity in our house, but now that we're no longer home owners, cannot save anything towards the purchase of another house, which is what I would want to do with the $20k. If we put money aside for a house now before filing chapter 7, the would take it all (or is there a way to put down payment money into a special protected fund?).

[scorpion35]

I have been planning to file chapter 7 because of massive consumer and medical debt (over 80k). We had filed chapter 13 a couple of years ago, but it was dismissed, as I was unable to keep up with the plan. We eventually lost our home, and are now renting.

Years ago I filed for a construction permit to build a small tv station. The FCC moves very slowly, and it seemed it would never be granted, but it appears that it will soon be granted afterall. A construction permit is good for three years, and can be transferred or sold to someone else.

Since I am not of the mind now to be a broadcaster and cannot afford to build a station, I would sell the construction permit to another broadcaster.

I probably could get $20,000 to $40,000 for it (more likely on the lower end of this range).

But as of this moment, I have nothing to sell. It's just an application, and it will not be the actual permit for months, or possibly a year.

If I were to file chaper 7, would I have to declare this as an asset? Again, it's not an asset yet, as it's still in the process of being granted. Also, once granted it is not a liquid asset and can be sold at just about any price, or even given away.

Is there a way I can do this and not lose it to the BK court? I don't want to hide it, of course, but I don't want to give up what I don't have to, either.

I suppose I could wait to file it until afer I sell it, but I would have $20k to get rid of.

What gripes me about the BK process is that in my state we could have kept $40k of equity in our house, but now that we're no longer home owners, cannot save anything towards the purchase of another house, which is what I would want to do with the $20k. If we put money aside for a house now before filing chapter 7, the would take it all (or is there a way to put down payment money into a special protected fund?).

not sure but i think u will have to

[AngelinaCatHub]

Speculation is not an asset. It is like this, Trustee asks do you expect an inheritance, and your totally healthy parents are out water skiing, you do not state yes I do, when they die. They may be 50 years old. Speculation. I would not even list that in any paperwork. I applied for a job. It would be an asset to get it, right? But if I did not get the job it is moot. 'Hub

[AngelinaCatHub]

Missed this one.

(or is there a way to put down payment money into a special protected fund?).

No, you don't do that. That will be hiding assets and also you would be perjuring yourself about not stating it.s existence. 'Hub

[brokenomore]

Missed this one.

No, you don't do that. That will be hiding assets and also you would be perjuring yourself about not stating it.s existence. 'Hub

It wouldn't be hiding assets if there were such an option.

I wasn't asking about hiding funds, but about whether they allowed for money to be put aside for a house.

[lrprn]

I wasn't asking about hiding funds, but about whether they allowed for money to be put aside for a house.

*ON FILING DAY* you can have as much cash in an account as your state's exemptions allow. Most states don't allow much at all, and even the most generous ones won't allow you to have enough to make much of a house downpayment.

Which state are you in? We can look up to see what cash amount your state allows on filing day.

*AFTER* filing, you can start saving up as much as you can and use it for whatever you want within reason.

Keep in mind that after filing Ch 7, no mortgage lender is going to offer you decent APRs (if they offer you anything at all) for about two years post-filing. That gives you plenty of time to save up a downpayment and work on increasing your credit scores. Nothing truly increases credit scores quickly - it takes time (and lots of it) to heal a bankruptcy.

[newbie2]

It wouldn't be hiding assets if there were such an option.

I wasn't asking about hiding funds, but about whether they allowed for money to be put aside for a house.

Cash funds are an asset. It doesn't matter where the cash is.

[keptdigging]

Sounds like you want to file yesterday--when this is just an application. Once you have a permit, if it can be transferred that is definitely an asset. Assuming you can't exempt it, up to the trustee what he wants to do with it (though illiquidity might work in your favor.)