Legal Question in Bankruptcy in California

You cannot transfer assets prior to, or in anticipation of filing bankruptcy, as those will be considered either an avoidable preference, or fraudulent conveyance. You need to meet with an experienced, qualified bankruptcy attorney before doing anything. Your accoutant is right, but you need to talk to someone who knows bankruptcy law to see if you even have an issue with asset liquidation. There are many ways of dealing with assets, including the fact that they may be exempt, or if they have a lien, exemption may not be necessary as you may not have any equity. Most bankruptcy attorneys offer a free consultation, so there is really no reason not to go see someone and get solid advice.

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Not sure whether you are thinking of filing under California or Washington State law, as it makes a difference. Each state has varying limitations on what you can keep. We notice from your zip code that you are in Washington state. Perhaps you need to contact a local attorney there. Under California law there often is no problem keeping modest possessions such as one car and a work truck and tools, depending on the financing (if any) and what other assets are also in the mix. We do this all the time.