QUESTION

Can you sell personal assets during a chapter 7 bankruptcy?

Asked on May 29th, 2014 on Bankruptcy - California
More details to this question:
I have just concluded the 341 meeting of my Chapter 7 bankruptcy and I am now in the statuary 60 day period. When can I sell personal assets listed on schedule B without fear of encumbrance by the bankruptcy trustee?
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4 ANSWERS

I would not sell anything until you get the notice of discharge. Someone could object to your assets being undervalued. You have a duty to report if you receive any large sums of money or inherit etc within 6 months of discharge. So the items must be sold about the value you listed or you could face issues.
Answered on May 29th, 2014 at 5:56 PM

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Bankruptcy Chapter 7 Attorney serving Los Angeles, CA at The Law Offices of Peter M. Lively
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If you exempted the assets, then they pass from the estate to you after the expiration of the time for objections to the exemption. That is the point when you can sell exempt assets. For all other assets you must wait until the case is closed.
Answered on May 29th, 2014 at 2:07 PM

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Bankruptcy Attorney serving Walnut Creek, CA at Alan E. Ramos Law Offices
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You should not sell assets until your case is closed.
Answered on May 29th, 2014 at 1:01 PM

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Bankruptcy Attorney serving San Diego, CA at Paul Staley
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No. All your property became property of the bankruptcy estate as soon as you filed your petition for Chapter 7 bankruptcy. During this 60-day period, a few things will happen. The trustee will issue a report of no distribution, then subsequently an notice of abandonment of bankruptcy estate property back to the debtor (you). However, if yours is a no-asset case, the better practice during this 60-day period is to simply ask permission of the trustee to sell property. Occasionally this could backfire though depending on whether claims are filed or an adversary proceeding is commenced. Best practice overall: wait until the discharge issues and the case is closed.
Answered on May 29th, 2014 at 12:59 PM

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