Selling of property

[DYLAN150]

After a person files for a chapter 7, goes to the 341 meeting and gets a report of no distribution from the trustee, is he or she then free to do what they want with their car or other property?

[btbeme]

Nope. Not until the case is discharged. The Report of No Distribution is pretty much a request from the Trustee to the judge that states the Trustee is satisfied...

...but that does not mean the US Trustee and the judge are satisfied. Wait until discharge.

[frogger]

Even better.... wait until your case is closed.

[AngelinaCatHub]

If you convert something exempt into cash, that cash belongs to the bk estate. You could easily convert your bk into an asset case (it happened to us through ignorance) and 30 more days are added plus the time to distribute your assets. Just stay status quo until your closure. 'Hub

[tobee43]

i agree with all the PP'ers. i would most wait until everything is closed and you have your discharge in your hands!

[DYLAN150]

Would this include buying a car right before discharge?

[tobee43]

Would this include buying a car right before discharge?

i personally would hold off purchasing anything large prior to your discharge and close.

however, i also know there are circumstances...such as one's car dying and you need one to go to work or school so you MUST do something, i.e. buying a car.

bottom line, is, if the expense can be absolutely substantiated, i would think it would not be likely to cause a big red flag because it could be easily explained. with that being said, if the situation is NOT urgent, it should wait, if you can. just my opinion.