Is it legal to sell assets to pay rent and child support before I file chapter 7 bankruptcy.

Snohomish, WA Viewed 48 times. Posted about 1 month ago in Bankruptcy / Chapter 7
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I am a sole proprietorship of a small repair shop and a little car lot and have been plegged with 2 back to back divorces and 2 deathes in the family and now the economy goes. I am in way over my head in credit card dept. I visted a lawyer and he wants my last 2 years of taxes that are late... I am waiting for my accountant to get done with my taxes so I can file chapter 7. Can I keep selling and doing business until I file.

I was wondering if I am in any trouble for selling my assets before filling . and yes I have sold to some family members but I have gotten fair value for those products. I also would like to start over in the same location.. any advise in this area would be great
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Answers (1)

Shawn B Alexander

Shawn B Alexander

Contributor Level 8
This attorney is licensed in Washington. Posted 29 days ago. Flag as objectionable
You are expected to settle your accounts and do business the best you can, however the sale of assets to family members will be a point of concern. Be honest with your attorney because in my experince a client that is not honest with me is no longer a client.
Good Luck
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