Another car question!! Last one

[mesa777]

Last car question... Am I able to sell a vehicle that I currently own and have equity in so that I can pay for my normal living expenses??? I live in AZ, have one car financed and the other car that I have is almost paid off, owe $5k, want to sell this car pay off the lien and use the $$ for bills, ECT before I file for jk about 6 mos down the road here, can only have 1 car here, better off to keep that car as its financed and won't lose anything from keeping this car!! Please answer. Am in a jacked up situation here!!

[mesa777]

Can someone here please help me with this question... this WILL be my last car/vehicle question... I need opions, someone who has been in a situation such as this... Cant get in to see my attny until 3/24!!!! Will I be screwed if I sell a car that has equity in it? Use the money for living expenses, bills, attorney fees, GAS, housing, ect until I probaby file for some sort of BK 6 months or so down the road!! HELP!!

[HHM]

You will be fine.

There will be no problem with you selling the car and using the proceeds as you would use any cash. It is not a problem.

[monkatom]

my trustee asked for a list of items I paid for with the procedes from my sale of car so I would pay bills etc not take a trip or something

[CATCHMEIFYOUCAN]

mesa777

I was in the process of filing for bk13. Before the filing my car got flooded, the insurance company was going to just give me money for a new engine. My lawyer told me just to use the money and get into a new car BEFORE I filed. So you should be fine. I ended up getting the insurance money and putting it down on a new car. I sold my car w/no engine to my next door neighbor for $500. They never asked what I did with the money. Anywho when they submitted my paperwork at filing time, it never showed I even owned that car but reflected the new car.

Catchmeifyoucan

[ProSe55]

You will be asked if you sold anything over a certain value before you filed and what you used the money for. Also be certain to keep great records of what you got for the car and where the money went.

[mesa777]

Thanks for the info. I have another car that is currently financed, owe $14k on, little equity.. The car I want to sell is a newer car, almost paid off, after the small lien us payed I will probably walk with $12k... I understand I can't go to Hawaii however need to have extra $$ on hand for my bk fees, cc bills, ECT... Why should I just sit back and lose the car to the court when I can get rid of it and spend the $$ on things that I need.. I need cloths, ECT....

[CindyLou]

if u already have a source of income it might be questionable why you needed to sell your car. Could you pay your bills without selling it? I think that will be the question asked.

Just be careful of selling something so the bk court won't get it. IMO, you should have a true "need" for the money to survive. (and maybe you do....im not saying you don't) just do it for the right reasons or its not worth the red flag it will raise.

[HHM]

if u already have a source of income it might be questionable why you needed to sell your car. Could you pay your bills without selling it? I think that will be the question asked.

Just be careful of selling something so the bk court won't get it. IMO, you should have a true "need" for the money to survive. (and maybe you do....im not saying you don't) just do it for the right reasons or its not worth the red flag it will raise.

I have to disagree, the contemplated sale is not really a big deal. Especially since this person is not planning on filing for 6 months. Keep in mind, the only reason the documents ask for sales in the last 12 months is to see if they are to insiders or are other wise non-market value sales. How the debtor uses the money is largely irrelevant.

[cool33097]

Make sure you keep the receipt for EVERYTHING.

[oldrocker]

Similar situation here. Am two and half years into a 0% 6yr loan on our truck, turns out we have about 3 grand in equity (NADA low retail) there's one exemption. Also have a high milage 6 yr old car paid for. The car NADA low retail is about 6 grand (though I don't see it), so way over the exemption. If I buy a new car (while my credit is still good) then sell our paid for car for say $5000 and spend $3000 for new roof (desperatly needed) $1500 to vet to get all our animals up to date (10 cats 4 dogs) before this mess (BK) starts and the other $500 on nessisary home repairs, this would be kosher if we filed in a couple of months?