Ch. 7 exemption confusion

You will lose the boat and the cars. I don't know about music equipment, depends on what you mean. They don't take things like PC's.

I have a guitar and an amp that I've had for years. Do they ask for a detailed list of assets? How detailed? I don't want to do anything unethical. At the same time, I'd hope not lose something that was a gift 10 years ago if I don't need to.

Also, is there a rule against selling your assets to a family member? If I legitimately sell my extra car to my parents with the intent of buying it back down the road, will that be an issue with the BK court?

You do have to report property transfers for the past two years, so if you sell your car, you will have to report it. If the court decides that you only did it to protect the asset, they may void the sale.

However, I disagree that you will automatically lose the boat and the cars. I live in California, and we were able to keep three cars and a travel trailer. All together they were only worth about $11,000 to $12,000 though. But we also had some business tools and some other miscellaneous things that we kept too.

The asset list isn't that detailed. There are general categories, such as household furnishings, clothing, jewelry, art, etc. You would just need to provide estimates of the total value of your assets in each category. If they are major items, like cars/boats, or expensive art, etc., then they do get listed individually.

Most BK attorneys offer a free initial consultation. It would probably be worth your time to consult with one and see what s/he says. I was actually surprised that we were able to keep everything (not that anything we have is worth all that much!). Also, if anything does have to be sold by the trustee, you have first right of purchase. However, if you have a lot of cash, that will also be treated as an asset. But if you have family that can help you out with a loan, then you could buy back any assets that you weren't able to keep under your allowed exemptions.

Also, don't forget that the guitar, amp, etc. are only worth what they could be sold for now, not what they were worth when new.

Thank you very much for your response. I was hoping that's what I could expect. It's hard enough having lost our house & retirement plans. It would be nice to keep a few of the things that keep life normal.

You're welcome. Good luck!