eBay Selling, Inventory, Paypal Credit -- and Bankruptcy

[bcohen]

Thanks! I looked up exemptions in my state and it includes: Implements, books, & tools of trade to $1,500. I am assuming that eBay inventory would be included in that?

Thank you again for your help.

Actually, inventory would NOT be included under "tools of the trade". The "tools of the trade" exemption is intended to cover income-generating tools needed for your job, such as the tools of a mechanic, plumber, electrician, etc. In your situation, the "tools of the trade" consist of your computer, digital camera, furniture used to store/display the items, and so on. Inventory is never considered a "tool of the trade".

For most people who buy and sell things on Ebay as a hobby, this would not come up during bankruptcy. I resell unwanted personal items on Ebay, but since I do not buy things for resale, I am not legally considered as a business, and the items I am selling would have little to no value to a trustee.

Since you ARE buying items for resale, and running a business, maybe you need to consider filing a BUSINESS bankruptcy. I assume that if you are running a business of sufficient magnitude to offer 2000+ items for sale at any one time, that you have obtained a business license, tax ID number, and so on?

[keepsmiling]

Nice job with the avatar, Daisy
Very cheerful, I like that.

[keepsmiling]

In answer to your other question, surely some BK attorneys can settle debt. Hopefully, a good one will advise you against it. Usually it's not in your best interest to do so unless there are some mitigating circumstances... you had insider preferences; you filed before and enough time hasn't elapsed; you are due a big inheritance (!)... or some other compelling reason .

Again, if you can tell us more, we may be able to help you more.

[daisyaday]

Thank you so much! I am going to talk to an attorney tomorrow. I really appreciate the encouragement and help, and am sure I will have more questions in the future. This is a great message board, and I have found reading threads and searching to be so helpful! Much appreciated!