Selling things to pay attorney

[vernors]

Can my wife and I sell property like our second car in order to pay the attorney? Will this count as income for the means test? Are there objections that the trustee/creditors can raise? This is in Florida. Thanks.

[nc73]

Can my wife and I sell property like our second car in order to pay the attorney? Will this count as income for the means test? Are there objections that the trustee/creditors can raise? This is in Florida. Thanks.

It counts as income if you don't have exemptions to cover the car. I'm selling mine soon and they can exempt it as income, at least here in tx.

[SinkingFast]

It's probably really gonna depend on the Trustee you draw and/or the custom of the Court you file in.

We sold a truck to pay our Income taxes within the 6 month time frame and it was not considered income. We didn't have enough Vehicle Exemption to cover the $$$ amount either. The Trustee was not thrilled with us, but was not gonna go after the IRS with his hand out.

This is one of those questions that's probably best answered by attnys in your area as you Consult around.

[vernors]

Thanks- after thinking about it, I guess I am more concerned if this could be considered fraud or abuse for selling an asset which we dont have exemption for.

[SinkingFast]

If it's a big ticket item, you definitely wanna document the transaction. Sell at fair market value and don't sell to family or friends.

Our attny included a copy of the "Sales Agreement" receipt from our Truck. We sold to a local Dealer. And our attny listed the money as going for "Living Expenses". Which we explained to the Trustee at our 341, we paid the IRS with the money.

If you're talking a garage sale or eBay to sell clothes and toys the kids don't wear or use any more,........ Probably not an issue. Lots of people do that to get the money to file. Sell smaller things at garage sales, yard sales, on eBay.