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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 16420
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Hi I am filing for bankruptcy soon and I have a whole bunch

Resolved Question:

Hi I am filing for bankruptcy soon and I have a whole bunch of silver that is not protected like about about $50,000 worth, So we are going to sell the silver and use the cash to buy things that are under the exempt catagory like jewelery, house hold items and so forth, My question is, I am going to buy a lot of stuff from costco so if I happen to change my mind with some of the items I purchased a month or 2 down the road after the bankruptcy is there a problem if I returned it? Also If i want to buy a new wardrobe is there a limit to items I can buy and have according to the bankruptcy? Like For instance a dress that I buy for $500 do i have to list each clothing item as a asset? Also cause once it is bought and used its not worth 500 anymore. Also I have no jewelry now so here in california i think the exemption is 5,000 so I can buy a wedding ring for more than 5000 right? Cause I cant resale it for $5000. What type of Creative honest ways to protect this cash have you seen? I want to be honest but need to be creative?
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 3 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

When do you intend to file bankruptcy?

Customer:

within in the next couple weeks however long it takes me to sell this silver and buy stuff thats protected

Customer:

I have an attorney and he is obviously helping us we payed him today but sometimes it seems he is annoyed at all my questions

Customer:

hi where is the response?

Customer:

I dont see the response

WALLSTREETESQ :

You cannot do what you plan.

WALLSTREETESQ :

This would be clear fraud and the bankruptcy court would consider these purchases as fruadulant and make you pay the Court back.

Customer:

But i may plan to keep most the stuff so how is it fraud?

WALLSTREETESQ :

The $50,000 would be taken by the Court to pay creditors,

WALLSTREETESQ :

You cannot sell the silver and purchase exempt property.

Customer:

But I am aloud to buy things that fall under things that are exempt, My lawer has told me i can sell whats not protected and buy things that are protected

WALLSTREETESQ :

For example if you had $50,000 in cash, and decided to put all of it in an exempt IRA, the Trustee would not allow it, as it was done to hide assets from creditors.

Customer:

He called it prebankruptcy planning, and said we were totally aloud to sell whatever we have as long as we use it to buy things that are protected.

Customer:

Ok well he said we could use it to buy a motorhome and live in it and it would be considered a homestead and it would be protected and another lawer on here said the same?

WALLSTREETESQ :

It is also permissible to use nonexempt cash, or money from the sale of nonexempt property, to pay off a nondischargeable debt (such as a student loan or overdue taxes) or to pay on a secured debt on exempt property (such as catching up with an overdue mortgage payment).

Customer:

Ok but you are saying I cant use my cash to buy things that are exempt? Like I have a beater car right now i thought I would buy a newer nicer car that would still fall under being exempt'

WALLSTREETESQ :

No, you can purchase exempt items, that may be fine, however if you plan to file in a few weeks, the trustee would want to know where you received the money to purcahse these items.

Customer:

And if I tell him i sold my silver to buy them then he will take them?

Customer:

even though it falls over what is exempt

WALLSTREETESQ :

The $50,000 or income would have to be disclosed, and that money would be considered as being a fraud.

WALLSTREETESQ :

The bankruptcy code allows your trustee to investigate all transfers/sales of assets prior to filing your bankruptcy. A debtor should not have to worry about any potential issues arising during the bankruptcy if he or she sold the asset for fair market value, and then spent the proceeds of the sale before your bankruptcy filing, in order to pay for necessary living expenses. However, assuming you sold the asset because you knew you would lose it in your bankruptcy and/or to defraud your creditors poses a huge issue and could result in serious repercussions with your bankruptcy

Customer:

like a wedding ring, I have a cheepy ring but it said up to 5,000 is safe so cant i go buy some jewlry then?

WALLSTREETESQ :

If you want to do this, it is possible but you should not file for atleast 6-12 months.

WALLSTREETESQ :

Right.

Customer:

ok, well obviously i dont need a nice tv or a nice car or a nice ring but i can buy nice ones cause they fall under the exempt catagory.

Customer:

Ok that was my question if I do sell the 50,000 and buy things how long should i wait to file till its safe?

WALLSTREETESQ :

You can do this, however, you are using non exempt cash to purcahse the items, and the trustee may state it is fruad, that is why you should wait to file bankruptcy.

Customer:

ok if i wait 6 months is that long enough?

WALLSTREETESQ :

6 months is fine, $50,000 is a significant amount of money and it may affect your means test income as well.

Customer:

My attorney was refered to me by my cousin who is a business litigation attorney and i have heard great things about him as well, and he has advised us that whatever is not exempt of the silver can be sold to purchase other exempt items. Is there any chance this is true because he seems very confident about it and claims he knows all the judges and trustees.

WALLSTREETESQ :

The trustee will not have an issue on minor exempt assets,

Customer:

ok would a ring and a car and a nice tv be minor?

WALLSTREETESQ :

The law does allow it, the problem is that your timing is too close

WALLSTREETESQ :

For example if you have $40,000 in debt which you are filing bankruptcy for, the Trustee may dismiss your case by stating that you had money to pay them.

Customer:

ok So if buy a motorhome with the cash right now and live in it as primary residence and travel for the next 3-6 months would that be exempt?

WALLSTREETESQ :

You can purchase items that are needed for a fress start, so clothes minor furniture is fine,

Customer:

I have about probably 350,000 debt and a forclosed condo that was 500,000

Customer:

its pretty bad

WALLSTREETESQ :

If that is your primary residence and is exempt that would be fine

WALLSTREETESQ :

But I would still wait 6-12 months if possible to file,

WALLSTREETESQ :

You can review the Legal Article I cited above it explains how you can do this.

Customer:

Ok I am a little upset my attoryney is giving bad advice compared to you, now i feel a little lost

Customer:

thanks for your advice i will read what you wrote and try to do whats best and honest and find a legal legit way to keep this cash

WALLSTREETESQ :

You can do what the attorney stated but you will be taking a risk of losing everything.

WALLSTREETESQ :

If you are satisfied please press the accept button so we can receive credit.

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

Customer:

Ok last question and then we are done, If I sell my silver off right now and buy a motorhome, travel for 6-12months I obviuosly cant be served anything, I should be fine if i go and check my mail and get served after that right? In the way of keeping my motorhome (primary Residence)

WALLSTREETESQ :

yes, that is better.

Customer:

Ok, i am sorry i thought that was really the last thing. If i give my silver away or sell it to my dad, and left the country for 1 year to live abroad, when i came back can i file for bankruptcy and be ok and not have to claim giving away or selling the silver,

WALLSTREETESQ :

That could be done, as long as their is no way for the transaction is found out. It is technically fruad, but you can state it was allways your fathers and was never yours.

Customer:

Do they ask past 1 year about waht you sold or gave away? I dont want to lie I just want to be creative!

WALLSTREETESQ :

Yes, they do ask for this, and you would have to list the items.

Customer:

how far back do they ask

Customer:

thanks for your patience, I'm going to leave you a good tip because this is much more than you should have to answer

Customer:

just a couple more things

WALLSTREETESQ :

Typically 1 year is the max, they can go back three years if they suspect fruad.

Customer:

the statute of limitations is 3 years right? if a judgment is against us longer or forever?

WALLSTREETESQ :

STATUTE OF LIMITATIONS (IN YEARS)



  • Open Account: 2 (no writing)

  • Open Account: 4 (reduced to writing)

  • Written Contract: 4

  • Domestic Judgment: 10 (renewable at 10)

  • Foreign Judgment: 10 (commencing with judgment debtor's commencement of CA residence.)

WALLSTREETESQ :

The law is above SOL for California.

WALLSTREETESQ :

A CA judgment lasts for 10 years and can be renewed after that for another 10.

WALLSTREETESQ :

It is 4 years for credit card debt,

WALLSTREETESQ :

If you are satisfied please press the accept button so we can receive credit.








If you have any further questions please do not hesitate to ask.



Customer:

ok, Here is what we think is best for us which another attorney said was ok the other day, You sound very knowledgemble and we respect your judgement. We have always wanted to move to Kansas city MO where my wifes dad lives. We can buy a fixer upper easily at $50,000 or so. If we move there and live there how long until we would be okay to file bankruptcy? If I am correct, I would need a Kansas city MO attorney but things would still fall under CA bankrupcy laws right? again, I will tip you well

WALLSTREETESQ :

You can do this, and CA homestead would protect you

Customer:

so how long would we have to wait aftrer buying a house in MO, 3 months?

WALLSTREETESQ :

  • he state you lived in for the 730 days (2 years) before filing; or

  • If you did not live in a single state in the previous 2 years you use the state where you lived the majority of the 180 period preceding the 2 year period; or

  • If the preceding renders you ineligible for any exemptions then the debtor is allowed to choose the federal exemptions.

WALLSTREETESQ :

I would wait 1 year

WALLSTREETESQ :

The state you use for your exemptions is:



  • The state you lived in for the 730 days (2 years) before filing; or

  • If you did not live in a single state in the previous 2 years you use the state where you lived the majority of the 180 period preceding the 2 year period; or

  • If the preceding renders you ineligible for any exemptions then the debtor is allowed to choose the federal exemptions.

Customer:

so are you saying I can't file bankrupcy even 6 months after buying my primary residence in kansas city?

WALLSTREETESQ :

You can, but I would wait a year so their is no problems.

Customer:

so if we were there 6 months then ended up being forced to file for whatever reason, we would probably have a good chance to be okay but not for sure, is thast the case?

WALLSTREETESQ :

Yes, you would have a good chance after 6 months of having no problem, but one year is safe.

Customer:

If we buy a house in MO now and travel for the next year then move to the house as our primary residence and file bankrupcy we should be okay right? Will we have to live in it a while after moving to it or is it okay shortly after because we were gone for a year.

WALLSTREETESQ :

yes, but you would need to live their for some time.

Customer:

If we buy a house in MO today expecting it to be our primary residence in the next year and we move into it in 8 months and live there 2 months is it considered our primary residence and safe or will we have to be there longer.

WALLSTREETESQ :

if you live their for more than 6 months it would be your primary residence

WALLSTREETESQ :

I will be leaving now, if you have been satisfied with our service please press the accept button.

WALLSTREETESQ :

You can ask more questions to me on Thursday if you wish

WALLSTREETESQ :

You can ask for wallstreet esq.

Customer:

ok, answer this and i will be done, no more questions and leave a tip:

Customer:

If someone comes to the door to serve papers. Am I required to answer the door....what ive you just never anser the door?

WALLSTREETESQ :

you are never required to anwer your door for anyone.

Customer:

ok so they can never technically serve you then right?

Customer:

thanks and have a good night, hopefully we decide the right thing to do :)

WALLSTREETESQ :

yes they cannot personally serve you

Customer:

great, I guess thats all I really needed to know ....ha ha :)

WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 16420
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you

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WALLSTREETESQ
WALLSTREETESQ
Attorney
2749 Satisfied Customers
14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS