Filling Chapter 7 - secured debt was sold - any problems?
I know somebody who is about to file Chapter 7 bankruptcy and they owe about 5K on furniture they bought a year ago. Now they are selling the furniture and they plan to file Chapter 7 in a month or so. I'm guessing they plan to use the money to pay their lawyer, but this is just a guess.
BTW, they have never paid a dime yet (no payment until 2009 deal).
Personally I think this a bad idea, but can they actually get in trouble for selling the furniture which is a secured debt?