Recieved Money

[sunnysiderays]

If you hold a garage sale do you have to report the money from the sales to the Trustee?

[woeisme]

not unless you sell some major ticket items, I wouldn't think so. I believe my trustee has something in the handbook he gave us that said we need to report sales or puchases of items over $5000 or somthing like that, I'd have to double-check, so I can't sell my truck but without telling him but I could sell my lawnmower no problem.

[aa06a47]

I wouldn't unless you want to give him/her part of it.

[wooisme]

with us we can sell or accuire something if it's not over $5k

[MajorMike]

Ours is 500! You have a generous trustee! WOW!

[Flamingo]

If you hold a garage sale do you have to report the money from the sales to the Trustee?

Not if you are going to have the normal once a year spring clean out garage or community yard sale - You could also take those items and donate them to the local charity shop (Goodwill, Salvation Army) and get a tax deduction for the same approximate value if you itemize on your taxes. Most people are lucky to generate a few hundred dollars from a garage sale unless they are selling high priced collectible or sought after items such as baby/nursery items.

[sunnysiderays]

Garage Sale money

So if I do give most of the monies raised in a garage sale, will that help my payments to end sooner? My Grandfather wants to give me money to help me get back on my feet, can I give that to the trustee too and have my payments lowerd or ends sooner too?

[woeisme]

It really depends on how your plan is set up. If you are in a 100% pay-back plan, then yes, you can use the money to finish more quickly. If you are only payingback a percentage less than 100%, you need to be careful if you are new law, especially if you are under 36 months into payback. Say you owe 50K to unsecured, and confirm to pay 50%, or 25K. Now under old law, you used to be able to do a payoff of just the amount you confirmed after 36 months. So if you confirmed at 50% (old law) on that 50K debt, and had 15K paid off after 36 months, you could pay 10K at the 36+ month mark and pay off the plan and not be required to pay off the entire 50K, just the 25K you initially proposed. New law, it's very uncertain. No one has been into a plan for 36 months yet, so it's hard to say what the law will allow, or if it will even be uniform from district to district, but it's possible that they will make you pay off the entire 50K to get out early. And if you try to pay off before the 36 month mark, I think they require you to pay 100% to unsecured. So while it's nice that Grandpa wants to help you out, or that you can make some extra $ with a yardsale, be very careful that the extra money just doesn't go straight to the creditors without helping you end the BK early, and you end up paying a lot more.