Sale of Jetski in May

[MP76]

I've been unemployed for about 95 weeks...will run out of unemployment in mid Sept. I'm completing my 30+ page Questionnaire tonight. I am going to give it to my attorney tomorrow. I plan on filing a CH 7 no asset. My home was foreclosed on, in Feb. 2010.

In May, I sold one of my few remaining assets, a jetski for $3,000.
There is a question that asks, 'Have you had any other income in the last 2 years?'

Does the sale count as 'other income' and will it be held against me by the Trustee?

My attorney said it 'might be a problem'.

Also, do I list my unemployment account under 'Bank Accounts'?
I don't know an account number, I just have the State issued card.

Thanks for any help anyone can provide.
MP76

[bigtim6656]

With your unemployment I would not think you would have enough income even if they count it for it to be a issue.

I've been unemployed for about 95 weeks...will run out of unemployment in mid Sept. I'm completing my 30+ page Questionnaire tonight. I am going to give it to my attorney tomorrow. I plan on filing a CH 7 no asset. My home was foreclosed on, in Feb. 2010.

In May, I sold one of my few remaining assets, a jetski for $3,000.
There is a question that asks, 'Have you had any other income in the last 2 years?'

Does the sale count as 'other income' and will it be held against me by the Trustee?

My attorney said it 'might be a problem'.

Also, do I list my unemployment account under 'Bank Accounts'?
I don't know an account number, I just have the State issued card.

Thanks for any help anyone can provide.
MP76

[MP76]

With your unemployment I would not think you would have enough income even if they count it for it to be a issue.

Thanks for your input.
I am just a bit distressed because my attorney said, 'you're not supposed to sell anything before you file bankruptcy'.

I've only made $13,675 year to date.
So, if I'm still far below the baseline of $42,000 / year, I should be ok?

Also, do I list it as 'other income', even though I bought it 5+ years ago for $4,700 and took a loss on it?

Thanks again.
This forum is a Godsend.
MP76

[ccsjoe]

MP76,

According to my attorney, a one-time amount that I received in May is not to be counted as income because of its non-recurring nature. He specifically mentioned he has argued this successfully with trustees before. I think you attorney might be concerned with the fact that it was a sale of an asset, rather than income. Please ask him to clarify.

[Maine]

The question they will ask is what you did with the money. If your answer satisfies them then you should be fine.

The sale probably needs to be listed as other income, because there is another question if you have transferred property and if you say yes you sold a jet ski, but do not show the money from that sale you will likely have more questions to answer.

[MP76]

The question they will ask is what you did with the money. If your answer satisfies them then you should be fine.

The sale probably needs to be listed as other income, because there is another question if you have transferred property and if you say yes you sold a jet ski, but do not show the money from that sale you will likely have more questions to answer.

Is this the other question, 'If you have made any transfer, absolute or for the purpose of security, or any other disposition of whatever kind of real or personal property during the last year, describe the property, the date of transfer, to whom it was transferred, if the transferee is a relative or insider...etc'..?

The person I sold it to wasn't a relative or insider of any kind.
I also have a signed, Bill of Sale...will the trustee need to see it?

It goes on to ask...'Consideration, if any, received'?

I just put $3,000 there?

Also, it asks, 'disposition of such consideration'.
Is that 'how did you spend the money'?

As far as what I spent the money on, $1,100 went to my lawyer, $350 went to auto repairs, $200 as a wedding gift, $200 to my dad to help him with property taxes, about $150 to misc expenses, and I held onto the remaining $1,000 as a small safety net, because you never know when the unemployment is gonna run out or if Congress is gonna extend it or not.

Due to this, I have listed $1,000 cash on hand...which my lawyer said was 'a lot of money to have.'

Comments...Please.
Thanks for all the responses thus far.

MP76,
According to my attorney, a one-time amount that I received in May is not to be counted as income because of its non-recurring nature.

That's what I thought too...?

MP76

[BobMango]

What state are you filing in?

I sold a motorcycle ($6,500) and two cows ($6,000) in the 18 months before filing and the trustees only questions were my relationship to the people that bought the items and did I get fair market.

The only time selling an asset before filing is a problem is if it was a fraudulent transfer intended to protect something from the bankruptcy.

As for the $1K, you can easily spend that on exempt and allowable expenses before filing. Pay up insurance, buy some groceries, etc. Won't take much.

Good luck.

[MP76]

What state are you filing in?

I sold a motorcycle ($6,500) and two cows ($6,000) in the 18 months before filing and the trustees only questions were my relationship to the people that bought the items and did I get fair market.

The only time selling an asset before filing is a problem is if it was a fraudulent transfer intended to protect something from the bankruptcy.

As for the $1K, you can easily spend that on exempt and allowable expenses before filing. Pay up insurance, buy some groceries, etc. Won't take much.

Good luck.

Thank You for responding.
I'm in Indiana.

My girlfriend needs some dental work done pretty bad, So I was thinking of helping her with that. Would that work?

I assume I need to spend it before the paperwork gets filed?
That should be in roughly 2 weeks from now.

Thanks for providing your examples too.
MP76

[BobMango]

Thank You for responding.
I'm in Indiana.

My girlfriend needs some dental work done pretty bad, So I was thinking of helping her with that. Would that work?

I assume I need to spend it before the paperwork gets filed?
That should be in roughly 2 weeks from now.

Thanks for providing your examples too.
MP76

You need to be careful with the dental work for the girlfriend. That could be considered a fraudulent transfer and they could go after her for that amount. I would probably spend it on buying groceries, then after filing use your grocery money for the next month for her dental work.

Last I check, in Indiana the wildcard covers $8K of real estate or tangible personal property, so I guess it depends on how it's defined in your district as to whether cash would be protected.

[MP76]

You need to be careful with the dental work for the girlfriend. That could be considered a fraudulent transfer and they could go after her for that amount. I would probably spend it on buying groceries, then after filing use your grocery money for the next month for her dental work.

Last I check, in Indiana the wildcard covers $8K of real estate or tangible personal property, so I guess it depends on how it's defined in your district as to whether cash would be protected.

Ok, I appreciate the advice.
I'd say I only have roughly $5,300 in assets altogether, including my vehicle, a 13 y.o. Chevy S-10.

So, as long as I spent the Jetski money on allowable expenses and sold to an independent party, which I did, the Trustee will not go after it?

Also, do I need to list my State unemployment bank account under the bank account section.

The reason I ask is because I don't have an account number, just a State issued Debit Card.

Thanks again for the help everyone.
It is really appreciated.
MP76

[Protected]

I went to a 341 hearing today to see what goes on, because I am trying to learn as much as possible.
I heard the Trustee ask the debtor a question similiar to yours. The Trustee asked "Have you sold anything over $1,000 in the last year?" Debtor said "Yes, I sold a car 6 months ago." Trustee said "How Much" and "What did you do with the money." Debtor said, $2,000 and I used it to pay rent and living expenses.
Trustee seemed to accept the answer and moved on with the hearing. It did not seem like a bad thing for the debtor.