Does selling possessions count towards means test (or anything)?

[tobee43]

as far as the "loan" from "aunt sue"..... how about letter of forgiving the loan????

that way it's a wash.

[gman]

Items sold on eBay, Craigslist, garage sales, etc. are not income UNLESS you make a PROFIT from the sale. This is very unlikely as most used items are sold for much less than their original purchase price.

In terms of getting money from family, friends, etc., it is best that it be written up as a LOAN with actual paperwork. Why? If it is not it can be seen as GIFT INCOME and would then be added to the Means Test and Schedule I.

Now, if it is written up as a loan, it will have to be listed as a debt in the bankruptcy and will be "legally" wiped clean. Your friends/family need to know this up front because the Court will notify them during your bankruptcy.

What you do AFTER the bankruptcy in terms of paying them back is up to you, just like those who might win the lottery post-BK and still pay back their creditors at 100% because they viewed it as a moral obligation.

I AM NOT A LAWYER SO THIS IS PERSONAL - NOT LEGAL - ADVICE.

[gman]

as far as the "loan" from "aunt sue"..... how about letter of forgiving the loan????

that way it's a wash.

I'd be careful of this approach until AFTER the bankruptcy, as beforehand the forgiveness might be seen as GIFT INCOME.

Actually, in the case of handling it afterward, there would be no need for the letter as Aunt Sue's loan along with all other debt would be wiped clean.


THIS IS PERSONAL - NOT LEGAL - ADVICE

[tobee43]

Items sold on eBay, Craigslist, garage sales, etc. are not income UNLESS you make a PROFIT from the sale. This is very unlikely as most used items are sold for much less than their original purchase price

.


i agree...shoot many items you HAVE to sell are at a fraction of what one paid for them. so that's actually a loss...

[KevFinnerty]

As far as my situation goes, do I have to get a letter (or something) from my friend who says "I loaned this person X amount of dollars" or what? Or is it some kind of formal legalese document that I would need?

[OhioFiler]

As far as my situation goes, do I have to get a letter (or something) from my friend who says "I loaned this person X amount of dollars" or what? Or is it some kind of formal legalese document that I would need?

If your friend gave you the money and it was income for you what effect does it have on your means test?

Was the amount given to you quite a bit? It seems to me unless it was substantial you don't have an IRS issue either.

There is not much else anyone here can do for you unless you provide the details.

[keptdigging]

Just filed and wanted to update.

My attorney's position is: "selling your stuff is not income" unless you're in the business of selling that kind of stuff. In my case it's a coin collection and some of the coins have been sold at gains. Now as a fallback when can amend our filing listing the games and it won't put me over the median, so if the UST has a different opinion we won't be providing a test case.

Now the sales of the coins are definitely disclosed on the petition as transfers of assets (which is also important for MY comfort level since I've been living on these sales and you'd see the money if you went through my bank accounts) So it'll be interesting to see if it comes up.

My attorney's position is also a reminder that the practice of law is like the practice of medicine... it's an art (imho). Her list of things she thinks will get questioned does not include this.