Can I sell exempt boat during bk

[mindy0795]

We have an old boat not worth more than $500, it is listed as exempt on our bankruptcy paperwork. We are under the means test and are listed as a no asset case under chapter 7. We are in our 60 day waiting period to be discharged. We need to get rid of this boat fast due to needing the extra cash for medical reasons, since there is not much value in it can we sell it now, we had a guy wanting to give us the money today. There is no title to the boat but we would have to transfer over the registration and the title to the boat trailer.

[mindy0795]

any thoughts on this?

[justbroke]

From what I understand in several cases I've reviewed, you would take an exempt property and convert it to another exempt form (so long as your State allows exemption of cash). So, it doesn't matter (in most States) that you sold an exempt item.

Have you had your 341 Meeting yet?

I would ask your attorney, but my feeling is that converting the exempt property to cash, would still make it exempt (in many States). Using the funds for medical purposes makes it even more palatable to me. However, I think it's moot if your State allows cash exemptions.

[mindy0795]

Yes we had our 341 meeting on March 26, 2009. We live in PA and unfortunately our attorney is out of the office until June 2. We are a no asset case and are well below the median income. I just don't want to mess anything up being so close to a discharge, but we are afraid if we don't sell the boat now we may not be able to get rid of it later on. We have had it for sale for over 2 years now and we need to come up with some money fast due to husband's health issues.

[justbroke]

Well, I would wait for your attorney. Does s/he work as part of a larger firm? Is his/her paralegal/law assistant around?

[mindy0795]

This is a small attorney's office and the paralegal has no clue which is basically what she told me. I'm assuming since our meeting was on March 26 we may be discharged by the end of May. Is this assumption correct?? The 60 day period will be over May 26 which is only a week away. I will try to hold off on selling the boat at least until June 1st, I will just pray for a discharge by then...... I don't know what else to do..

[nodough]

I asked my atty this same question regarding some old dirtbikes and he said that it was ok to sell things and use the money for necessities. Medical expenses would certainly count as a necessity. His only stipulation was that we sell for fair market value if we sold to family.