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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39027
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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Lost business client and I am having major financial difficulties

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Lost business client and I am having major financial difficulties and am considering my options ("to file BK")

I am running out of cash and am considering trading in my wifes 05 Honda Minivan ("$740 monthly with a remaining balance of $8,300) for a smaller used 09 Mazda5 ("Mini mini van", monthly payments would drop to about $300 , but this will be a 72 loan) . Doing this will get me cash back of about 4k from the equity in the Honda. I can use this money from the trade to make house payments and other immediate obligation.

Will this cause issues , should i choose to file in the next month if things don't get better.

Thank you

As long as you receive "reasonably equivalent value" for any asset transfer, the bankruptcy trustee cannot void the transaction. It seems as though you are simply trying to survive, not hide assets, so you should have no difficulties here.


Hope this helps.


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