Selling rental before BK HELP!

[Brokester]

Hi I have had nothing but trouble with my rental . I was going to do a chapter 13 because it would not sell, now all of a sudden I have a buyer. I will not get much out of it maybe only 5-7K. Will this cause a problem with the trustee when I go to file? I just don't want the hassle of paying the "equity" back over 5 years. Should I wait several months before filing? I plan to use the money on food and attorneys fees. My income is below the median so I figured if I can just sell it it would make things easier because I wont have that hanging over my head. I just don't want anyone thinking its a fishy sale I just don't want it anymore. So can I just do a chapter 7 in a few months?

[frogger]

Is this "all of a sudden" buyer a family member, relative, or friend?

[Brokester]

Lol come on now I know that is fraudulent! Its just a random person who wants the home. Why now after all this time I don't know.

[frogger]

Lol come on now I know that is fraudulent!

Not necessarily.... if they are paying fair market value, then there is no problem with selling the property. You will however, need to be able to account for how you spend the proceeds.

If you have a true "arms length transaction", then there will be no problem even if you are having to discount the property. Just make sure you can account for how you spend the proceeds with this one too.

If you're selling a property in order to have funds to live, and the transaction is fair, you should have no problems.

Keep your paperwork in order!