Moving Sale Before Discharge

[contest]

We filed on July 8, our 341 is August 16, we are not keeping the house. We got lucky and found a great rental already and will be moving in on August 1. We had to jump on this rental because 3+ bedroom rentals are usually rented the same day they go on the market, and this one had several others on the list after us. It would have been nice to be able to wait it out until forclosure, but there is no gurantee we would fine another in the next year, so we had to take it. Plus, the rent is $1000 cheaper than our mortgage.

As we started packing and going through things, we are finding lots of things to get rid of, because we won't have room. Would a Moving/Garage/Yard sale cause any problems before discharge?

[BCA2009]

Are you an asset case? How much did you list you houshold items for on the flling forms?

The problem I see, is if you listed your peronal belongs at $1000. (state of florida $1000 is the exemption, for example. I don't know what it is in IL) And then you sell stuff before the 341 for more than that, you put down incorrect values on your filing forms. All of the assets of your estate (at the date fo filing) belong to the BK, so I personally would wait until after the 341 if I was a no asset and until after the discharge if I were an asset case.

Why don't you go ahead and rent the new place, but leave your unnecessary stuff at you old home until after discharge then sell the items. The house will not go thru foreclosure that soon anyway, so store your stuff for free for a few months then sell it.

[contest]

That sounds like pretty good advice. We are a no asset case. In IL, there is a $4000 wild card exemption per filer, and $2400 vehicle expemtion per filer, and we are well below on both, but I really don't want to do anything to mess anything up. This is way too important to risk.

Thanks!

[HHM]

Unless you are in Florida , no one is going to care if you sell misc household items. Granted, by the letter of the law, you are not supposed too, but from a practical stand point, no one is going to care.

The middle of the road approach would be to try and wait until after the 341 meeting.