If you sell the truck for what you owe on it, or you only receive relatively small amount ($1500 -$2000 for example), there probably wouldn’t be a problem. However, be aware that in a Chapter 7, you must disclose anything sold, given away or transferred within roughly the past year.  So, if you are going to sell the truck before you file, you will need to be able to account for any money you get from it. If you give the money to a friend or relative, or pay a creditor with it, the trustee can ask you (sue you) for that money, and use it to pay your creditors. If you get no money from the sale or if you are using the money to pay regular monthly living expenses, once again, you should not have a problem.  Typically, a red flag situation would be one where you have a fair amount of equity in the truck (say $5,000 -$10,000) and you sell it within less than a year before filing for bankruptcy.  If this is a substantial asset compared to your other assets and debts, the trustee could, again, seek to recover the amount you get for the benefit of your creditors.