?'s on non exempt property

[brokentex]

I am in the process of filing chp 7 and the only non exempt property I own are 2 jet skis, one is worth $2500 and the other is worth $1100 if it was fixed but it neeeds about $500 worth of work. I have consulted with a lawyer and hes seems to think the trustee will abandon them due to hardly any $ coming from them at an auction or that he can exempt them somehow. If the trustee decides to take them, the will be sold at an auction right ? I currently am behind 2 months on student loans, $480 and I owe $1600 in property tax, and I will owe the IRS about $2000 in April. I was going to sell the skis to pay my taxes in January and april but now I am stuck. When assets are liquidated, doesn't the trustee have to pay taxes first out of the money ? Has anyone else ever given up a boat or jet ski in a chp 7? How does the process of selling them go ? I do not mind giving them up, but I do not know how I will pay my tax liability if they are sold.

[brokentex]

no


98k in CC debt

75k mortgage


18k cars


42k student loans

[FilingOnMyOwn]

I am in the process of filing chp 7 and the only non exempt property I own are 2 jet skis, one is worth $2500 and the other is worth $1100 if it was fixed but it neeeds about $500 worth of work. I have consulted with a lawyer and hes seems to think the trustee will abandon them due to hardly any $ coming from them at an auction or that he can exempt them somehow. If the trustee decides to take them, the will be sold at an auction right ? I currently am behind 2 months on student loans, $480 and I owe $1600 in property tax, and I will owe the IRS about $2000 in April. I was going to sell the skis to pay my taxes in January and april but now I am stuck. When assets are liquidated, doesn't the trustee have to pay taxes first out of the money ? Has anyone else ever given up a boat or jet ski in a chp 7? How does the process of selling them go ? I do not mind giving them up, but I do not know how I will pay my tax liability if they are sold.

I would take them by your local powersports dealership, and ask them what they would offer as trade in value on them. Whatever number they give you, I would use that as the value you claim in your filing. Either way, its not worth going into a chapter 13 even if you lose them. If you have to pay your taxes late, you can file an amended return, you aren't going to goto jail over it.

[bkfiler]

as to who ows tax money if they are sold...

whatever the trustee takes from you it then becomes his tax problem, liability problem, etc. he owns your estate from the filing forward. if he takes them then he is responsible for them, including taxes.

[AAAArt]

I sold some items before I filed and paid est. taxes due with it. I had the items appraised and then included copies of the sales receipts and how much I paid to the IRS. No problem at all from the trustee and atty okayed it as well.
It's what you have WHEN you file that matters. If you have sold something within the last 6 months, you just have to show where it went and that it wasn't preferential payment to one creditor over another. The IRS doesn't stand in exactly the same line as your other creditors. Art

[bkfiler]

amen brother. the gov makes the bk rules and they know how to cut in line

happy new year art! im getting sh*t faced already! whoo hoooo! kiss me!

[brokentex]

So I can sell the skis right now to the dealership for reasonable value and as long as I use the money to pay my property tax and income tax and can document all transactions, then the trustee can not question me ?

[bkfiler]

the trustee can question you about anything, and do damn near anythign he wants to. always remeber that.

if you are sure the skis value cant be covered as an exemption then might as well sell them and pay the irs. the judge probably aint gonna take the money back from the irs.

but, you did say your attorney might be able to exempt them. did you file a petition yet? start working both angles and see where they meet.

you could end up with a trustee that likes the water

[StaciMM]

That is probably the best move. Just keep a paper trail, cancelled checks or money order receipts for where the money goes.

So I can sell the skis right now to the dealership for reasonable value and as long as I use the money to pay my property tax and income tax and can document all transactions, then the trustee can not question me ?

[AAAArt]

happy new year art! im getting sh*t faced already! whoo hoooo! kiss me!

I love ya, bro and have to admit that's quite the colorful pic, but think I'll pass on the kiss. Happy New Year though to all of you. Art

[brokentex]

the trustee can question you about anything, and do damn near anythign he wants to. always remeber that.

if you are sure the skis value cant be covered as an exemption then might as well sell them and pay the irs. the judge probably aint gonna take the money back from the irs.

but, you did say your attorney might be able to exempt them. did you file a petition yet? start working both angles and see where they meet.

you could end up with a trustee that likes the water

Basically the attorney said to me that the amount that the 2 jet skis would bring from auction would not be worth the money it will take to come pick them up and transport them to be sold. He mentioned that the majority of the time the trustee will not go after the property and will abandon it if he does not believe it will bring $2500 min at an auction.

[StaciMM]

Most likely your attorney is right. He probably knows the tendencies of your trustee. On the other hand-if you have an opportunity to sell them and pay your taxes before filing, why not?

[brokentex]

Most likely your attorney is right. He probably knows the tendencies of your trustee. On the other hand-if you have an opportunity to sell them and pay your taxes before filing, why not?

He specializes in "no asset " cases. I chose him because of others that I know who have used him and he is known as the best bk attorney in my town.
I am just worried about selling them and throwing a red flag and having to explain why I sold them before I filed. If they will be seized anyway, and taxes are a priority on the creditor list, I may just see what the trustee decides to do. If they get sold at auction, the trustee gets 25% of the first 5k, then priority creditors are paid first.

[StaciMM]

But if you sell them on your own, trustee gets $0... You won't have trouble if you DO sell them, as long as you keep a papertrail.