My mom filed bk 7 earlier this year. I attended her 341 meeting in april. Three weeks ago, someone protesting the bk and she was deposed in front of the trustee at her lawyer's office. I was present at this meeting.
This is what I found out during the proceedings. My mother did not include her residence in her bk so she thought as long as she was current on it, she wouldn't lose it. However, the lawyer severly undervalued the property on her schedules. We are in NC. She purchased her townhome for $142000.00 in 2001. She currently owes 70k on it. She claimed that the house is only worth 86k. (That's a lie because her neighbor who is a real estate agent had her similar townhome on the market for two years for 149k, though it didn't sell and was taken off the market.) So, I figure she has at least 70k in equity in the home.
She owns a mercedes that was paid for in cash back in 2000. For the last 2 1/2 years it's been in my stepdad's name. But they broke up over her lack of maintaining her finances properly and he transferred it to my sister instead of to my mother.
Well, the trustee now knows about the equity in the house and the car that she bought but hasn't been in her name for years. Her attorney is telling her that she is probably gonna lose her home and her car. She's in huge denial. She still believes she can get out of this. Her lawyer says that we can't get her out of the bk now. Since all these red flags have been thrown up for the trustee.
The trustee has asked for additional documents to look into whether or not she's hiding stuff or whatever. My sister has been paying my mother for a car payment that my mom loaned my sister to buy. My mother did not report this money as income.
The trustee also has no idea that she owns thousands in jewelry and art because they have been removed from the house. Is my mother totally screwed?
(My mom and dad sold a multi million dollar business in 1993. They divorced and since that time has squandered all her money.) She is penniless on paper.
Any advice, feedback. I would definitely appreciate whatever y'all know that comes next. She's so deep in denial she's not willing to entertain the thought that she's screwed.
This is what I found out during the proceedings. My mother did not include her residence in her bk so she thought as long as she was current on it, she wouldn't lose it. However, the lawyer severly undervalued the property on her schedules. We are in NC. She purchased her townhome for $142000.00 in 2001. She currently owes 70k on it. She claimed that the house is only worth 86k. (That's a lie because her neighbor who is a real estate agent had her similar townhome on the market for two years for 149k, though it didn't sell and was taken off the market.) So, I figure she has at least 70k in equity in the home.
She owns a mercedes that was paid for in cash back in 2000. For the last 2 1/2 years it's been in my stepdad's name. But they broke up over her lack of maintaining her finances properly and he transferred it to my sister instead of to my mother.
Well, the trustee now knows about the equity in the house and the car that she bought but hasn't been in her name for years. Her attorney is telling her that she is probably gonna lose her home and her car. She's in huge denial. She still believes she can get out of this. Her lawyer says that we can't get her out of the bk now. Since all these red flags have been thrown up for the trustee.
The trustee has asked for additional documents to look into whether or not she's hiding stuff or whatever. My sister has been paying my mother for a car payment that my mom loaned my sister to buy. My mother did not report this money as income.
The trustee also has no idea that she owns thousands in jewelry and art because they have been removed from the house. Is my mother totally screwed?
(My mom and dad sold a multi million dollar business in 1993. They divorced and since that time has squandered all her money.) She is penniless on paper.
Any advice, feedback. I would definitely appreciate whatever y'all know that comes next. She's so deep in denial she's not willing to entertain the thought that she's screwed.
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