What to do?

[dmeyer07]

Ok so i'm not sure what to do here.. My girlfriend bought a jet ski entirely with her money, however we registered it in my name. We ended up selling the Jet ski not running for 3,500 (fair market value was actually 3250) back in August.

Although she paid for it i'm afraid the trustee will run some sort of boat registration check (we have no titles for boats in this state) and see i had a jet ski registered in my name and question me as to why i didn't list it on my forms.

What should i do here?? I don't want to commit any type of fraud by lying, but if i dont need to make a big deal about it and amend my forms,etc then i won't.

Thanks!

[joshuagraham]

If it was registered in your name, it was legally a gift from her to you. I suggest that you come clean and explain it to the trustee, since the penalty for such an oversight could be the lost ability to get a discharge.

[tobee43]

when did you file your bk?? there are time limits or sales or exchanges. when a sale of something of value was prior to the what the time the court is requesting you don't have to explain anything. in some cases some situations are 2 years, others 6 months.

also, if you sold this item to help with living expenses for reasons like job loss, it really shouldn't matter that much. many people prior to their filing bk sell many of their assets to sustain just living their daily lives. some will sell a car to help pay for rent or food etc.

once again, it may depend on when you filed and how you used the money if it fell within the time limitations the courts request.

[AngelinaCat]

You will be asked if you sold or gave anything away in the last XX days. When you are, explain the jet-ski situation, and you should have no problem. (I don't remember if the XX is 90 days or 180 days in Florida--and right now I don't have time to look it up.) Your state will differ. If the jest-ski sale was outside of this XX day window, there should be no problem at all.

Good wishes!

[dmeyer07]

10. Other transfers
a. List all other property, other than property transferred in the ordinary course of the business or financial affairs of
the debtor, transferred either absolutely or as security within two years immediately preceding the commencement of
this case

I'm guessing this is where i would put the jet ski (on the statement of financial affairs). It says for the last 2 years, i sold the jet ski on 08-02-12 so i'm within that window. What would be better, to amend it, or to just bring it up at the 341?

Btw the $ went to pay bills and back to my gf, it was only registered in my name to save on insurance by grouping it with my bike, other than that it was hers.

-Dave

[keepmine]

10. Other transfers
a. List all other property, other than property transferred in the ordinary course of the business or financial affairs of
the debtor, transferred either absolutely or as security within two years immediately preceding the commencement of
this case

I'm guessing this is where i would put the jet ski (on the statement of financial affairs). It says for the last 2 years, i sold the jet ski on 08-02-12 so i'm within that window. What would be better, to amend it, or to just bring it up at the 341?

Btw the $ went to pay bills and back to my gf, it was only registered in my name to save on insurance by grouping it with my bike, other than that it was hers.

-Dave

Now you have another issue. If some of the money went to your gf then, that's an insider payment and the trustee can go after her the money she received from the sale.
I'd suggest you both amend the filing and then bring it up at the 341 and be ready to write a check should the trustee want to pursue it.

[tobee43]

dave, i had a "few" of those i had to list as well with an explanation. they involved far more money, however, it will depend on your trustee.

my best advise is not to spring something at the 341, especially, in light of the fact it's something that can be traced. not that all bk courts do that much digging, but you just never know. i would ask my atty what is the best way to handle this situation. if most of the money was used for living expenses, it may not be worthly of mention i would ammend your petition, or if your atty thinks not, hopefully, the trustee will just let it slide.

[dmeyer07]

Man what a mess! Well i filled pro se so i have no lawyer to fall back on (from my experience w/ lawyers there isn't that much falling back to do! $$). What i'm going to do is just list it as a transfer of property, and not bring my girlfriend into it unless it gets brought up. I'm not trying to lie to anyone here the last thing i want is to get my case thrown out or get some fraud charge!

I'm going to list it and since it was sold for exactly its fair market value and the fact that it isn't running, i'm hopping the trustee will let it slide and not pursue it. I have not one penny right now, and if i were to have to "write a check" i'd be screwed because i have no income and no way whatsoever of coming up with $3500 on the spot.

I knew this was going to be a pita when i started, but it's something that needed to be done. My case is rather straightforward i think, i have no house, a jeep im surrendering because of a title loan, my motorcycle i own in cash that is exempt, and now this jet ski that i sold back in august. I have no income and no money anywhere. Hopefully this is the only hiccup along the way, i'm so stressed out i can barely sleep.

thank you guys a ton for all your help so far you have no idea how much it helps.

[dmeyer07]

Ok so i updated the SoFA and listed the jet ski in section 10a. I'm going to just leave my girl out of this and if asked what i did w/ the money from the sale ill tell him i used it to pay rent/bills the last several months ive been unemployed (which is true) since my income is zero and my bills are 1700 i'm sure their gonna question how i've been paying bills. My girl has helped pay some bills since she lives her and we both pay rent, but if its not brought up im not going to bring it up.

[bcohen]

I agree. Just keep your mouth shut and say that you spent the money on living expenses. After 4 months, it's not too difficult to believe that $3500 was spent on rent, food, entertainment, etc. (Unless, of course, you wrote a check to your girlfriend, in which case you better not try to deny that.)

[tobee43]

i second that!

[jst4f]

I understand your position and that you believe it is serving justice but be aware that lying to the TT is a crime and can get your case dismissed. I suggest you re-consider your approach.

[dmeyer07]

I understand your position and that you believe it is serving justice but be aware that lying to the TT is a crime and can get your case dismissed. I suggest you re-consider your approach.

I made amendments informing my trustee of my girl actually so at this point I'm as honest as could be.

[LadyInTheRed]

Glad you are being honest. If the trustee asks, don't lie about what you spent the money on. Jeopardizing your discharge is not worth $3500. Don't bring the isssue up. But, if it comes up, explain to the trustee why the jetski was in your name even though it really belonged to your GF. If you have documentation showing that your GF paid for it, bring it to the 341. As long as you stay honest, the worst thing that will happen is that the trustee won't believe it belonged to your GF and will pursue her for whatever portion of the $3500 went back to her. There is nothing to keep you from paying your GF back for anything she has to pay to the trustee.