Sell second car now???

[rockymtnlady]

I will be declaring BK this month, but have 2 vehicles. One is a 1994 RV van with $1000 equity, which I plan to keep and pay (if allowed). The other is a 1987 clunker van which needs repairs, has about $600 equity.

I would like to sell the clunker NOW, before declaring BK, and use the money to repair the other vehicle or pay my BK expenses.

Can I get in trouble for selling this asset early?

Thanks for any help!

[HHM]

Not really. All you would have to do is explain what you used the money for, and if its reasonable, (which it sounds like it is), it should not be a problem.

[rockymtnlady]

Thank you!

Thanks for the reply!

[butterflyness]

And dont forget to have receipts. I remember in my 341 meeting, this girl bought a new vehicle, and they kept asking her where did she get the money to pay for it, and she coudnt come up with anything. If u sell ur vehicle get the receipt for that, along with the receipts from the repairs.

[FloridaGirl]

Did she finance the car or buy it outright? If she financed it, I'm surprised they gave her such a hard time.

[butterflyness]

Well with hers was a long story she wasnt telling. She said she purchased the car through "knick knacks" she would buy and then sell. Which to us and the judge made no sense. It was hard to believe that these lil things she gets from thrift stores and sold out the back of her car made her 3000 in 2 months. In reality this girl was clearly on drugs. Everything a bout drugs was written all over her face.

[hhou812hh]

Well with hers was a long story she wasnt telling. She said she purchased the car through "knick knacks" she would buy and then sell. Which to us and the judge made no sense. It was hard to believe that these lil things she gets from thrift stores and sold out the back of her car made her 3000 in 2 months. In reality this girl was clearly on drugs. Everything a bout drugs was written all over her face.

Sounds like drugs. Not being able to explain some of these things to the trustee or a loss of assets can cause them to dismiss. I remember a trustee asked some lady why she had so much debt and she replied, "it was all business expenses", the trustee then said, "a $3000 fur coat on AMEX is a business expense"? She looked him in the eyes and said yes. He rolled his eyes and let her go and said "next person". What a kook! Actually not really since I saw a Discover CC billboard in my local mall yesterday that had a women bragging on all the necessities she can buy with her Discover like ear rings. LOL I guess if CC companies say it's a necessity then we can too