Minneapolis, MN asked in Bankruptcy for Minnesota

Q: I sold my car shortly after filing. Was that ok?

I was informed my vehicle was going to be exempt (I have no other assets), and if I wanted to sell it to pay the attorney fees, I could. At the time I couldn’t sell it, so I asked if I could use their other method and if I sold the car after filing, if it was ok to pay it in early in the lump sum. I was told it could do it that way. I filed and then someone gave me an offer for the car (with my luck it always happens that way.) I didn’t really think about it and said yes, but now I’m panicking wondering if I’m going to get into trouble. I am telling my attorney this weekend of the changes, but the concept of doing so is making me feel sick. I would just rather be prepared for what will be said in advance. Should my attorney have told me not to do it that way until the bankruptcy was discharged?

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1 Lawyer Answer
Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: You probably are ok but you really needed the courts permission to sell after filing. As long as the value and equity is covered by your exemption, you should be ok Dutt do not sell any other property of the estate without authorization.

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