Hit with a bombshell and really need your help, please?

[TatteredInTexas]

Hi all,

Well... life just seems to get better all the time.

Last Thursday, I filed Chapter 7 for me and my wife. On Saturday, she tells me (pretty much) our marriage is over.

Since I am out of work and pretty much pennyless, I need to get some funds together so I can either get my own place, or go back to my original hometown. So here's my question...

Would I be breaking any laws if I have a garage sale and sold off a bunch of stuff that we no longer need?

Obviously, I know this is all a part of the bankruptcy estate, but it is a "no asset" case.

I don't want to violate the law and upset the bankruptcy in anyway, but I'm really in a serious bind and need to get some cash together pretty quickly.

Any ideas, thoughts, suggestions would be very much appreciated!

Many thanks,

TatteredInTexas

[StaciMM]

If you have nothing of greater value than you listed on your petition, and everything on your petition is accurate-you should be fine with doing what you can to raise money.

[TatteredInTexas]

Thanks StaciMM,

I listed everything we owned in the petition. Household items, etc... only came to about $7,000 in garage sale value. Obviously, that's way below exemption level - thus nothing that the trustee could take, or would even want for that matter.

I just wanted to be very sure before I made any hasty moves that might void the bankruptcy case, or worse yet - get me in legal troubles with the court.

Much appreciation!!!!

TatteredInTexas

[HHM]

Actually, technically, you would be in violation of the bankruptcy laws. Since you have already filed, everything you have is now owned by the bankruptcy estate. Strictly speaking you need to wait until the bankruptcy estate has abandoned the property, which I believe occurs 30 days after the 341 meeting as that is the last day for the trustee to object to your exemptions (I am not 100% on the 30 days, someone would need to look that up).

As a practical matter, the trustee generally has no interest in taking general household goods because they are usually exempt and also, they have very little value.

I really can't advise you to go ahead with the garage sale but at the same time, probably not much will happen if you do. But there is a small risk you could have your bankruptcy dismissed or possibly even be refused your dischaged.