Question from a newbie, how much?

[swiminindebt]

I am new at this, so bear with me. I have a question about the value of something I need to sell before my papers are filed. I spoke with my lawyer today and received my packet for starting my chap.7 bk. I need to sell a Harley before my papers are filed. I have about 10 days to sell. How do I determine what the "fair market value" would be? In the perfect world, it would bring what I "think" it's worth, but I don't have that kind of time. Should I use kbb or NADA and what type value, trade in or retail? I could probably sell it quickly for around the 8-9k range, but kbb retail is 11300. I would have to wait to get top dollar i think. WILL THIS RAISE ?????
Question 2, could I use the proceeds from this sale to payoff a car that is financed that I would like to keep or would they then just take my car? Any help would be greatly appreciated...thanks

[originalhealer]

I know you can sell an exempt item and use it to pay for a non-exempt item. In other words, you could sell the car to pay for the Harley, but not vice-versa.

Fair market value is usually wholesale price, i.e. trade-in value.

Thirdly, make sure that selling the Harley is *legal* the way you are doing it. Did your lawyer advise you to sell it?

[hhou812hh]

I know you can sell an exempt item and use it to pay for a non-exempt item. In other words, you could sell the car to pay for the Harley, but not vice-versa.

Fair market value is usually wholesale price, i.e. trade-in value.

Thirdly, make sure that selling the Harley is *legal* the way you are doing it. Did your lawyer advise you to sell it?

I think you are allowed to make something that is not-exempt such as the Harley, exempt, but you may have to show a good reason if asked why so close to filing. In other words if you sell your Harley to pay off the car now you have too much equity in the car, so the trustee may take it. And you will have no car and no Harley. If you sell the bike and use the proceeds to buy "badly needed furniture", or fix the roof that's leaking, replace a fence, etc. This new property is now all exempt and the trustee won't be able to touch it. Just sell the Harley for FMV and be able to show where the money went. Don't give anyone the money either to hold! The trustee will only get it back and dismiss your case.

Good luck!

[swiminindebt]

Thanks.. I have gotten several different responses from different people. Some said kbb retail value. That's pretty much not even what a lot would ask right now. My lawyer told me that I could sell the bike before I filed, but with the understanding that what money I didn't use to fix some things around my home that were needed, they would take the remainder from me. I can't just go out and blow it or buy new "stuff" but could use it to do some maintenance or repair work that was needed. I am sure that I won't use it all, or nor would I try, I can't let anything come into play that may even be considered as fraud. I need this to go smoothly. Thanks for the info.....by the way, I have really appreciated this sight. It has been a difficult decision and reading info here has made it a little easier to bear....thanks again

[LinSC]

You could also try going to your local Harley dealer and ask them to provide you with an estimate of what it's worth or what they'd give you for it. Just ask them to provide the estimate in writing. We had to sell a truck prior to filing. We went to CarMax who only offered and paid us $4000 but it's KBB value was around $7000 (private party retail). However, the KBB trade-in value is what we printed and provided to the trustee per our attorney's advise. We didn't have a problem with the trustee.

[swiminindebt]

Thanks for the info LinSC. I want to do the right thing. I am just really worried about making a mistake. I can't afford to do anything to mess this up. I would really like to sell the bike before I file, really need some of that money to pay the lawyer, but want to make sure I dot my i's and cross my t's. Ya know? I am just a little skepticle because the market is so down right now for something like this. I have had the bike up for sale for about 4 months now, with no luck. I started out high and kept getting lower and lower. In all of the markets I advertised it in, I was down to the $12G mark, without even an offer. Kbb trade in on this bike is avg. $8k. I am afraid the word "harley" brings massive bucks to mind though. If it would have sold a good while back, I may could have gotten more. However, I'm down to the wire now and I need it gone. I can use the money to pay some bills that are due, and also may help my case go smoother(don't know) since there will be something to pay towards the bk amounts owed. I owe well over 70k in unsecured/secured debt that will be involved. thanks again