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Sell Non-Exempt pre 7 filing?

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    Sell Non-Exempt pre 7 filing?

    We are ready to file Chapter 7. With the great help here I am nearly through the forms etc. All of our personal property falls under the State exemption guidelines.

    Except - we have been trying to sell an old Travel Trailer (non-exempt) for over a year without any takers. Then last week we got an offer and accepted it - about $4,000.

    The Elias/Nolo Bankruptcy book says it is OK to sell non-exempt assets and pay your regular monthly bills with the funds (pg 64-67). This is what we plan to do. I will carefully document every step and disclose on Form 7.

    What are the wise opinions here about the following:

    - How quickly can I spend this money on regular, necessary items and then file? I am SOOO tired of thinking about this, and I am nearly ready to file. Will the court slap me if I spend this money and file this month?

    - These are some of the things I plan to pay. Any thoughts are appreciated:

    1) Our real estate taxes are due. We will not be able to pay them if I don't use this money. I planned to pay only the first half (1,300) that is due in February - but maybe it would be "cleaner" if I paid it all now (2,600 total is due by June).

    2) My husband has been putting-off dental work on a cracked tooth probably about $800

    3) February two mortgage payments total 1,340. (we have been scraping by and keeping these current without these "sale" funds).

    If I only pay half of the real estate taxes I planned on also paying the Homeowners and Car Insurance premiums, utilities etc......

    Any experienced advice would be appreciated.


    Hi ColoFiler. Welcome to the forum. As long as the travel trailer has been sold for near market value--and it looks like it has--you should be fine.

    Pay the bills you need to and get Hubby's tooth fixed. None of these items will raise any trustee's eyebrow. These are all legitimate expenses and cannot be ignored. Just make sure you keep all receipts involved in the transaction, including the bill of sale for the travel trailer.
    Last edited by AngelinaCat; 02-08-2010, 08:56 PM. Reason: fix typo
    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."


      You are fine with those expenses for the travel trailer money.

      Depending on district, though, this money may need to be included on the means test as income.
      11-20-09-- Filed Chapter 7
      12-23-09-- 341 Meeting-Early Christmas Gift?


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