How much time should you put between selling large items... i.e. a car, furniture, etc., before filing a chapter 7? 6 months? 1 year? How far back will the trustee look (or care)?
-
-
If you sell a car to an insider, the lookback could be up to 2 years.
A lot depends on the amount you receive and how close it is to FMV {sale to an insider}. If you sell to a 3rd party you don't know, be sure they title and register the car immediately in their name. We've had some situations here where the buyer didn't do that and the trustee went after it. Stuff like furniture {unless it's a high value antique} are pretty worthless to a trustee. -
About selling the car. We need to sell a car we have... we plan on using the money to fund the attorney fees, and a move from state to state.
We will probably get $4,000 for the car... no lien, owned outright.
File 7-8 months from date of sale.
NOT sold to an insider... simply listed on craigslist.
Question... Will we be forced to give that money to the trustee? What is the timeframe in which they will look back?Comment
-
Just my experience, I owned a Honda (I had paid it off using my 401k so the interest would go to me not the creditor (in reality I was still paying for the car), but I physically had the title. Just a month before I filed, it got flooded but not enough for the insurance company to total it! So they gave me $1700 to get a new engine. I took the $1700 and purchased a new car. I than sold the Honda (with the flooded engine damage to a neighbor for $500). The Trustee didn't make a fuss. Maybe he misunderstood - but who knows! If you use the money to pay off the attorney, I seriously doubt the Trustee would go after the attorney for the money back. Its funny the Trustee never asked how one comes up with the money for the attorney. If you use the money without justable cause than the Trustee could very well likely request the funds! Whatever you do, make sure you have receipts, etc.
Good Luck, CatchmeifyoucanJuly 2006: Filed Ch13 :blink:
Oct 2006: Converted to Ch7 :clapping:
Jan 2007: DISCHARGED :clapping:
Nov 2007: CLOSED :yahoo::yahoo::yahoo:Comment
Comment