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can I buy or sell vehicle before 341?

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aah

Junior Member
What is the name of your state?What is the name of your state? Michigan
I filed for Chapter 7 on Sept. 8 using Federal bankruptcy guidelines. My hearing is Oct. 18th. My dilemma is, I need another vehicle NOW because it can barely get me to work anymore. My current vehicle is exempt under 11USC522 (D) (2), and it is only worth about $500 if that much. I owe nothing on this vehicle. Can I legally buy another vehicle before my hearing and discharge? Can I sell the vehicle I have now (for $ toward another vehicle)? The vehicle I plan on buying is over the exemption allowed for a vehicle. Does it matter since I already filed with the property that I owned at the time, and this would be after filing?
 


Ladynred

Senior Member
What you're proposing would be a BAD idea right now.

My current vehicle is exempt under 11USC522 (D) (2), and it is only worth about $500 if that much. I owe nothing on this vehicle. Can I legally buy another vehicle before my hearing and discharge?
You've file for bankruptcy telling the Court that you cannot afford to pay your bills. So, where is the money coming from to buy another car ??? That's what a Trustee would like to know.

Can I sell the vehicle I have now (for $ toward another vehicle)?
The vehicle is legally the property of your bankruptcy estate and that is now being administered by the Trustee. You should not be selling the thing now, certainly not before your 341 meeting. Although it IS exempt, the Trustee first has to AGREE that you have no assets.

The vehicle I plan on buying is over the exemption allowed for a vehicle. Does it matter since I already filed with the property that I owned at the time, and this would be after filing?
Yes and no. Again, where are you getting the money to buy another car when you're telling the court you can't pay your creditors ?? Technically a vehicle purchased after your filing date is excluded from the estate and therefore you wouldn't need to exempt it.

Its just not a good idea to do this at this point in time. Surely you can wait 3 months until your discharge ?? At LEAST wait until after your 341 meeting so you won't have to tell the Trustee any lies when he/she asks if you've sold any property in the last year.
 

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