90 Day-Rule in a Raleigh, NC Chapter 7 Bankruptcy
The 90-day rule applies to anything you buy 90 days BEFORE FILING a Chapter 7 Bankruptcy, other than real estate, can be taken by the Trustee.
The 90-day rule in practice, only things that CAN be sold for a fair profit will be taken. It has to be worth the Trustee’s time to pick up the item and sell it. He can keep no more than 10% of the selling price, so if an item can be sold for $1,000 it has to be worth no more than $30 — $100 of the Trustee’s time and expense. If it can be sold for $100, the trustee can only make $3 — $10 on it.
90-Day Rule in Practice
In reality, Trustees rarely take anything besides real estate, vehicles, and cash because most other property is not worth their time since they can keep only 3-10%. Since the 90-day rule does not include real estate, this really only applies to vehicles, cash (tax refunds, bank accounts), and other EXPENSIVE property.
Purchases, such as cars, may not be effected as long as there is little equity in the vehicle. This means that the 90-day rule allows the purchase of a vehicle as long as you put little if any money down.
The easiest way around the 90-day rule is to ensure that you do not file within 90 days of purchasing an expensive item.