How do I sell a vehicle?....Need help.

[LiveStrong]

I'm still debating on whether or not I'll be filing for a 7.
I have a truck with a completely blown motor and a bad transmission. If the truck was running it's worth about 12k. With a bad engine and transmission it's probably worth 4-5k. How can I sell it for the 4-5k without any trustee problems later?

Thanks!

[OhioFiler]

Get a repair estimate for the damage. You'll be fine so long as you don't sell it to a family member. If the trustee asks you tell the truth.

[keepmine]

And, don't use the proceeds to pay an insider.

[lrprn]

As long as the truck is sold for its full current market value given its condition, it can be sold before filing to anyone, even a family member. If questioned about it by the trustee, the filer produces the evaluation of the truck and the bill of sale. This is not an insider asset transfer issue because the seller sold the car for FMV. There's no attempt to hide the asset at the relative's, or give it away to the relative for a $1 within two years of filing - those are true insider transfer issues.

Now what the seller does with the legitimate $$ gotten for the sale of the truck, that's another question.

LiveStrong, if you do sell this truck for its full market value, how much cash can your state exemptions protect on filing day?

[OhioFiler]

As long as the truck is sold for its full current market value given its condition, it can be sold before filing to anyone, even a family member. If questioned about it by the trustee, the filer produces the evaluation of the truck and the bill of sale. This is not an insider asset transfer issue because the seller sold the car for FMV. There's no attempt to hide the asset at the relative's, or give it away to the relative for a $1 within two years of filing - those are true insider transfer issues.

I would think it could still raise the eyebrow of a trustee if a vehicle in that condition is sold to a family member. I'd feel more comfortable not transacting with an insider just to be safe.