sold car

[crimsondawn]

My attorney is furious at me that I sold a $1500 car before filing. He said I am not allowed to sell anything with a title for 2 years. He said I must wait 90days to file now and I may still have to settle with the trustee. Do you think I will have to pay the trustee if I wait 90 days?

Do I really need to wait 90 days?

I am in Idaho.

[newbie2]

I've never heard of the "never" part of the 2 year rule. Many people sell things in order to make ends meets (cars included). The difficult part of this is if you didn't sell the car for fair market value and if you sold it to a family member, friend or such.

Did you sell it for fair market value?

[crimsondawn]

I did sell it for fair market value and not to a friend. My attorney said the trustee could try to take the car from the innocent person I sold to because it was fradulent transfer.

[OHBOY]

With all due respect, I think your attorney is 'full of it'. (just my thought)...
A number of years ago my wife sold her car just prior to her filing for bk, and.... then, to top it all, she turned around and gambled the proceeds away. Her attorney wanted to know who she sold it to, but nothing was ever said at the 341.
As long as it was not sold to an 'insider' everything should be just fine (my layman opinion)

[BobMango]

I agree with OHBOY, the attorney is dead wrong. I sold a motorcycle 1 year before filing, and two cows for $6,000 less than a year before filing. The trustee asked who we sold them to and if we got fair market for them, that was it.

[LadyInTheRed]

received less than a reasonably equivalent value in exchange for such transfer or obligation; and
(ii)
(I) was insolvent on the date that such transfer was made or such obligation was incurred, or became insolvent as a result of such transfer or obligation;
(II) was engaged in business or a transaction, or was about to engage in business or a transaction, for which any property remaining with the debtor was an unreasonably small capital;
(III) intended to incur, or believed that the debtor would incur, debts that would be beyond the debtor’s ability to pay as such debts matured; or
(IV) made such transfer to or for the benefit of an insider, or incurred such obligation to or for the benefit of an insider, under an employment contract and not in the ordinary course of business.

The entire code section is at http://www.law.cornell.edu/uscode/11...8----000-.html

It's disgusting how much terrible advice people get from attorneys. And what we read on these boards is only a small sample of what goes on. It gives a bad name to the many excellent (and even adequate) attorneys out there.

[newbie2]

This makes me angry also. The original poster should definitely find a new attorney, and hopefully she hasn't already paid this one.

[otin1735]

Im about to file Ch.7 the first week of April and I am concerned because 21 months ago, I leased a new vehicle and gave my old car (13 years old) to my brother in law that same week. its still within the 2 years. Also, my mom is helping me out with my car payment, can this work against me? I do want disclose it, its only $400.00.....thanks!

[BKOnce]

90 days

[keptdigging]

Playing devils advocate here, perhaps the attorney is concerned that the trustee won't believe it was for FMV or that it will complicate things? Less generously, attorney doesn't want the "work" of a trustee asking questions. Even less generously, Perhaps bk is not this attorney's "focus".

But "can't sell anything with a title for 2 years" is ridiculous. After all two years of "planning" to file isn't exactly the behavior of the mythical "honest" debtor either.

[dlinid]

I am in Idaho as well, if you are in the Boise area, let me know and I will give you my personal experiences with some lawyers in the area.

[backtoschool]

The attorney is simply pointing out that the trustee will look closely at the sale. The attorney will also have to file more paperwork with the trustee, such as an appraisal of fair market value of the car, and and some sort of statement declaring that you did not sell it to anyone you know.

If you truly sold the car at market value, I do not see a problem, but you will have to prove that the car was sold at market value.