When my wife and I got divorced a year and a half ago, she got everything but the business. I got my clothes, a few personal stuff, my truck and a motorcyle. A year ago, I sold the motorcycle and bought a sailboat for around $3500. It's probably worth that or a little less. The boat, my clothes, a dressor, a TV, a small stereo and a pistol are really about all I have. The truck is being financed. If I file a 7 will I be required to sell the boat? I owe about $18K on two CC and about $10K on the truck. Maybe I should sell the boat now? what if I file a 13?
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Filed CH13 November 2008
341 with confirmation recommendation Jan 7/09 100% payback to secured and 10% to unsecured.Plan completed and discharge 02/20/13 -
Don't sell the boat. It would look like fraud. Depending upon the exemptions in your area you may be able to use the wildcard exemption to exempt the boat. -
Agreed. Selling off assets will look like fraud.Pre-Filing Credit Scores:
Mine - 705 DW - 715
Filed 08/09/2008
341 09/25/2008
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The boat is an asset and unless there is an exemption to cover the equity in that asset, the trustee can take that property.
You CAN sell the boat prior to filing BK so long as you do so for fair market value and the transaction is otherwise completely legitimate. Then you can spend the money on necessary living expenses and other exempt assets.Comment
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