Can I sell a car to use the money to pay a bankruptcy lawyer and pay for some necessary dental work thats been put off for some time? Will this cause my case to be dismissed or will i have to pay the money spent to the trustee? If over a 12mo. period I would gladly agree to that. If enough is left over I would like to buy a reliable car I can exempt. My exemption in Al is wildcard $3000.
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As long as you sell the car for 'Fair Market Value' you should have no problem. Now this is FMV in your area, based on what similar cars in similar condition are being bought and sold for.
Make sure you keep the bill of sale, and keep receipts for the attorney and dental expenses.
Good luck to you!
"To go bravely forward is to invite a miracle."
"Worry is the darkroom where negatives are formed." -
As long as you sell the car to someone you don't know, whatever you get for it should be fine. The trustee isn't going to hassle you if you only get $1000, even if the blue book value is $2000 or $3000.
The problems arise when you sell or transfer property to an "insider", which would be a friend or a family member. In that case, the trustee will really scrutinize whether the selling price was for what he considers "fair market value" or if the transfer was more of a gift or attempt to hide assets.
I suggest using the blue book price as a guideline, but making sure to entertain offers, as the car may have damage, higher miles, or other issues which would reduce the valuation. I would recommend placing an ad on Craigslist, which is free, and if that doesn't work, then a paid classified ad in the local newspaper.Comment
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