Sell car prior to BK for IRS debt??

[MomIcantFindmy]

We prepared our taxes this year and found out we owe $3128 to the IRS for 2007. I am sooo sick of debt. It just seems to keep compounding everywhere we look!
So here is the question. We are filing sometime in April. I have a Jeep that I am almost certain we will lose (third car and we are max on the exemptions). We could sell the jeep now for slightly over the cost of the IRS debt and just pay off the IRS. Would the trustee get upset about that?

I know IRS is not a dischargeable debt in a BK so my thinking is that if I sell the Jeep atleast I wont have to make payments to the IRS for the next year. Plus they will probably take it anyway and then it would go to pay someone else.

Help...I don't want to do anything wrong or throw a wrench into it. We have tried to wait out anything in our BK that might look bad in hopes of things going as smooth as possible.

[MomIcantFindmy]

anyone?

[Lindsay]

I remember a post about this same situation on another board. I remember he was instructed not to sell the vehicle to a family member and to document what he did with the money just in case he was asked about it.

I'm sure some of the most knowledgeable posters will be along soon to help. I bet everyone is enjoying Superbowl parties today!

I know what you mean about the debt, everytime I turn around, there is something else I owe. I'll feel relief that I finally made the mortgage payment and the next day a $350 heat bill will arrive. It's so frustrating!

[no_it_all]

Selling the Jeep to pay off most unsecured creditors (in this case, the IRS) may be considered as a preferential payment...But, since the IRS is a priority creditor, I doubt you would have any issues since they would receive priority when the estate is liquidated anyway..(assuming you are Chapter7)..