SELLING non-exempt property shortly before BK files

[SURV69]

I have equipment that I think I can't protect.

I expect to file within a month.

I had been looking for a buyer of this equipment for bout 6 months now and I think I found one . . . finally.

The sale amount will be about $8000.

If I use part of the $8000 to catch up on my secured properties and to buy new tires on my truck, THEN personally divy what's left EQUALLY to each of my NON-secured debtors, I wonder if I'll have a problem with the trustee?

I seriously need the money, although not quite that much. Problem is, either I sell the "system" or I don't. It's unrealistic to sell 1/2 of the system although that's the amount I need(sale of 1/2 the system) to make things current.

[DeadManCrawling]

What state are you in?

Don't personally divvy up anything among creditors, in any event. There are other aspects to this than paying them equally. Attorney and trustee fees, etc, that will doom that action from before you begin.

If you will end up with nonexempt cash because of this, I would wait a bit, file later, and spend the money on reasonable and necessary expenses for living. If that is not possible, and you have NO way of waiting or exempting the cash, better to let the trustee decide how to handle it than to make the decision for them. They do not usually appreciate that sort of thing, even if your intentions are good.

best,

-dmc

[JoeBankrupt33]

Just make sure that you are selling the equipment for a fair value.

I agree that you should try to exempt the cash if you can, but don't pay any non-secured creditors. Catching up on the secured payments and buying tires should be OK.