Legal Question in Bankruptcy in California

It depends upon which part of your petition package you are asking about. Is it income for purposes of Schedule I - current monthly income? No, none of those would be current monthly income if they have already taken place. If, however, you regularly sell gold coins as part of a business operation (or for that matter, if you regularly sell them just for your own enjoyment), then it is going to be income from the operation of a business across the board.

Is it past income during the look-back period to be included in the means testing? Again, I believe that the answer is no, however, the sale of gold coins might arguably be income for purposes of the means testing. I would lean towards listing it in your means testing, then if that creates a presumption of abuse, refute it with an explanation that it was a one-time liquidation of personal assets.

Is it income other than from employment or operation of a business, to be listed on your Statement of Financial Affairs, paragraph 2? Yes, except the cash advances on credit cards or lines of credit. Cash advances are never going to be income because they are borrowing, as opposed to income.

Finally, there is another place it needs to be listed. The Statement of Financial Affairs asks for "Other Transfers" at paragraph 10. There is no limitation in terms of dollar amounts, so I would include both #1 and #3 on the form, no matter how inconsequential it might seem. It is extremely important to give full, complete disclosure when filing to avoid inquiry and possibly dismissal by the U.S. Trustee's office.

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