Can I sell assets before I file for bankruptcy?

The short answer is no, but I need to explain further.  When  clients sell their assets right before they file for bankruptcy, they create a problem with their Trustee.  It is the bankruptcy Trustee who is essentially in charge of the assets and has to give approval to sell them.  If clients sell an asset within a designated time prior to filing bankruptcy, it may or may not create an issue.  Many times the Trustee will ask what was done with the proceeds.  As long as the assets are below the exemption amount then it will probably not be an issue.  It is best to ask your attorney if you plan to sell an asset to make sure that it is not going to cause an issue in your bankruptcy.  Remember the Trustee has an all seeing eye, so it is best to make sure any sale is not hidden from him.  It is the Trustee who will approve or disapprove of your sale.  Have questions?

Call my office to set up your consultation today.  Todd Courser 810-245-0813