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I have a call/email into my attorney but won't hear anything until Monday or Tuesday...
Sold a few items (stereo equipment, speakers, etc) via ebay before ultimately deciding to file Chapter 7. Money received for those items were large amounts ($600-$2000) and received the money into a PayPal account.
From my research, as long as the items that were sold were sold for fair market value (what they are worth) and the money gained was used for daily/normal living expenses (or even to pay the lawyer) then this is all ok.
Is that correct?
It's ok If you need money to make rent, buy food, buy you or your children clothing, or pay for medical costs, by all means, sell the boat or some other luxury item and use the proceeds to buy the things you need to live. Just sell it for what it’s worth and keep good records. The simple reality is that most people are cash poor before filing for bankruptcy, and you can sell property and use the money for necessities.
https://www.nolo.com/legal-encyclopedia/selling-nonexempt-property-before-filing-bankruptcy.html