Question Can we sell a truck before filing?

[Frogge]

We have an '84 Ford truck we left in TN for sale. Over the weekend we got an offer for $1,000 -but I was hesitant to say 'yes' without asking the attorney. We are filing at the end of the month. If we do sell it, what should we do with the money?

[AngelinaCatHub]

Best bet, use the money for food and exempt expenses. I have just been talking about that Angelfoodministries. Look for it and you may be able to get much with little but if you have a freezer, food and stuff like blankets heating fuel and things like that you will get by. An 84 truck the Trustee will not really want anyway. 'Hub

[Keebler]

We have an '84 Ford truck we left in TN for sale. Over the weekend we got an offer for $1,000 -but I was hesitant to say 'yes' without asking the attorney. We are filing at the end of the month. If we do sell it, what should we do with the money?

One of the things the Bankruptcy process looks for and asks about are the recent sale or disposal of an asset that could otherwise have been ceased.

If the trustee finds you sold the truck and it would otherwise have been an asset, you'll be in trouble. You could end up being dismissed or you could end up re-paying the trustee whatever you sold it for.

It would be far less risky to wait and see what happens and sell it after you find out if the trustee is going to let you keep it. Is $1,000 really worth the risk of having to pay back the trustee? Especially after you've already spent the money?

[Frogge]

no, it's not worth all that of course. I wonder if we could just turn the money over to the trustee? My only worry is the truck has been sitting for so long, it's rotting away, and it'll cost about $5-700+ to travel to TN to pick it up on a trailer so I thought it would make sense to get rid of it. We probably have to pay in some $$ anyway, in the form of tax refund and/or buying assets so maybe the trustee would rather have cash.?

[Flamingo]

Frogge - don't play guessing games when it comes to your finances/assets...you answered your own question in your first posting by saying you were hesitant to say "yes" without asking your attorney...by all mleans, ask your attorney on this one...

[Keebler]

no, it's not worth all that of course. I wonder if we could just turn the money over to the trustee? My only worry is the truck has been sitting for so long, it's rotting away, and it'll cost about $5-700+ to travel to TN to pick it up on a trailer so I thought it would make sense to get rid of it. We probably have to pay in some $$ anyway, in the form of tax refund and/or buying assets so maybe the trustee would rather have cash.?

With luck you can list the truck and the Trustee will declare you a no asset case because it isn't worth his time to go get it either. In as little as 90 days you can sell it to the next person who wants it. On the other hand, the Trustee might take it and it'll be out of your hair.

In any case, its best to disclose everything and let the chips fall where they may. But selling an asset when you know you're filing soon will make you look bad no matter how you try to explain.

[AngelinaCatHub]

With luck you can list the truck and the Trustee will declare you a no asset case because it isn't worth his time to go get it either. In as little as 90 days you can sell it to the next person who wants it. On the other hand, the Trustee might take it and it'll be out of your hair.

In any case, its best to disclose everything and let the chips fall where they may. But selling an asset when you know you're filing soon will make you look bad no matter how you try to explain.

I agree. However, for what I understand the little it is worth, is going to help feed these Op people. What it is worth is not worth the Trustees interest and if it feeds these folks and he *****es about it, pay the Trustee in an agreement, and feed the family and get rid of the junk truck.

I have to pay back a 5K payment. A truck? I could pick up aluminum cans to repay that little bit if the Trustee is that petty. Only my opinion. 'Hub

[BKParalegal]

One of the things the Bankruptcy process looks for and asks about are the recent sale or disposal of an asset that could otherwise have been ceased.

If the trustee finds you sold the truck and it would otherwise have been an asset, you'll be in trouble. You could end up being dismissed or you could end up re-paying the trustee whatever you sold it for.

It would be far less risky to wait and see what happens and sell it after you find out if the trustee is going to let you keep it. Is $1,000 really worth the risk of having to pay back the trustee? Especially after you've already spent the money?

On the contrary, it is far more risky to have non-exempt assets on your petition when you file. If you don't need the truck and it doesn't fall under your state's exemption, then by all means sell the thing. It will be listed under Q#10 on the SOFA and you just state funds were used for "Necessary Living Expenses"

Good Luck

[Frogge]

These replies are all contrary and all make sense... so I'll wait to hear from the attorney. I suppose I should hold on to it for now. I don't feel it would be very much of a gesture to offer $1000 cash to the trustee when he could have a more valuable free & clear car that he could charge us a few thousand to keep.

[AngelinaCat]

One of the cars that our trustee decided to abandon is a 1968 Chevrolet Impala. When purchased it was in pretty fair shape but had been sitting four years and needed work. We worked on it a bit, then the rear brakes froze. At the same time 'Hub was diagnosed with prostate cancer and had to have immediate surgery. So the car was parked in the garage and it ended up sitting four more years.

When we filed BK we listed this car, gave its condition, and all of that. At the 341 the trustee asked "On a scale of Ferrari type show car quality to housing squirrels, which is it?" We said truthfully that while in a little better condition than housing squirrels, it had been sitting for four years and that the current green color was NOT the paint."

As I recall, about the time we joined there was a question someone, perhaps Dirk Squarejaw, had asked about listing a 1973 car that was essentially a rusted hulk. He was told not to bother. Here is that thread:

http://www.bkforum.com/showthread.php?t=24342

Good luck