Expert: Terry Leeders - 11/29/2008

Question
my partner an i owe a bank 100k for a loan on our busniess and we signed a personal note now there getting a judgement aganst us the judgement is coming i am going going to file bankruptcy my house payments are current but to make next months house payment i am going to have to sell one of my pick up trucks to get the payment till my other business picks up is it wrong to sell an asset for my house payment knowing i am filing bankruptcy i am trying to save my house till thing get better

Answer
While it is not wrong to liquidate an asset before bankruptcy, you must take caution to make sure you get fair market value for the asset.  You must disclose that transaction in the bankruptcy, and the court will be concerned what you used the proceeds for.  Speak to a local bankruptcy attorney to get advice on liquidating the asset if you must, and to verify what valid uses you have for the proceeds.