ARAG Legal Insurance - Badge
Avvo Rating - Badge
Lawyers.com - Badge
Google Rating - Badge
Better Business Bureau - Badge

Can I Sell Personal Property Before Bankruptcy

Liviakis Law Firm Team

In Chapter 7 bankruptcy, the nonexempt assets are sold, and the proceeds go to pay your creditors. Both federal and state laws allow the court to void an asset sale that was made just prior to filing for bankruptcy. If the court determines that the assets were sold or transferred to avoid having them be included in the liquidation process, you may be held liable.

When you file for bankruptcy, the court-appointed trustee will ask the debtor if they have traded, sold or transferred property within the last two years. Some states can go back as far as six years. The trustee is looking for fraud concerning your bankruptcy.

Types of Fraud

Actual fraud; where the debtor intended to delay, hinder or defraud a creditor.
Constructive fraud; when the debtor received less than fair market value during the time the debtor was insolvent.

Exempt Property

Talking to your Citrus Heights bankruptcy attorney can help you evaluate whether you are at risk of penalties involved in what the court considers an improper sale of your assets. Much of your assets may be exempt and will not be included in the bankruptcy process. To be safe, don’t make any transfers shortly before filing.

Don’t Leave Anything Out

Be honest with your attorney and explain any past and recent sales or transfers. Looking at your case, filing a Chapter 13 bankruptcy instead of Chapter 7 may be in your best interest if you have such transfers to declare. The trustee does not liquidate your assets in a Chapter 13 bankruptcy, but instead, you must follow a court-approved repayment plan on your past due debt. When you have finished making your payments, some remaining past due debts can be eliminated.

The issue can become complicated, especially if you sold items to be able to make other more relevant payments. A Citrus Heights bankruptcy attorney will have the experience you need to help minimize any problems that may arise during your bankruptcy.

Our Office

Former Office
1215 K St

Sacramento, CA 95814

Phone: 916 459 2364
New Office
2377 Gold Meadow Way
#100

Gold River, CA 95670

Phone: 916 459 2364

Client Reviews

Mr. Liviakis is extremely knowledgeable and answered all of the questions that we had about our situation. He made a really difficult time manageable with his help and expertise. I would definitely recommend...

Lindsey Joyner

Mik is a great attorney. Very friendly & professional. Price is was bit high compared to other firms. Probably the highest I've seen. If price your thing, checkout other firms. Other than that, Mik will get the...

Oi Vinn

Mik helped us save our home and settle with creditors during the pandemic after we were forced to close our family business for over a year. I am forever grateful. He was kind and professional and followed up...

Jina and Steven Hale

Mr. Liviakis was timely and professional. He patiently answered questions and explained the process. He provided handouts that clearly outlined due dates. The firm's paralegal was very easy to work with. I...

Wes Pohl

I nothing but great Experiences, and great service.

Tony Boone

Positive: Professionalism, Quality, Responsiveness, Value

Linda Todd

Contact Us

Fill out the contact form or call us at (916) 459-2364 to schedule your free consultation.
  • Language.png Free Consultation
  • Phone.png Phone Appointments Available
  • Gavel.png Talk to Award Winning Attorney Today

Leave Us a Message