top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

341 tomorrow

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    341 tomorrow

    So our 341 for our chapter 7 asset case is tomorrow. Attorney assures me there isn't going to be any issues but a couple things came up that have me worried. I received a death benefit from my mother's ESOP plan in late 2020. Reported it on our petition and it was included in our income but then excluded as a one-time event. Trustee asked through attorney today for documentation to support that it was a death benefit. I provided it, attorney says he's confident trustee will allow it as a one-time event and not make us ineligible for chapter 7 because if it isn't exempted, it will cause us to exceed median income. Second issue - we ended up being an asset case because I didn't realize both vehicles were registered in my name only. Thus, we couldn't use my wife's vehicle exemption. I had part of a wildcard exemption left that covers the bulk of the vehicle. Attorney is confident trustee will abandon the asset as it will not be worth selling at auction, taking 10% for him, 10% to auction house, and pay me the amount I had left in wildcard. I don't really care about the car. It can go if it needs to. But does anyone know, will we know tomorrow at the 341 if we can continue with a chapter 7 and the status of the asset? I'm trying not to stress and freak out, but so far no luck.

    #2
    I see no issue with providing the Trustee evidence that the one-time death benefit is exactly that, and only that. The Trustee needs to have sufficient documentation to account for any income or property (money).

    No one but the Trustee can tell you whether or not the Trustee will abandon the vehicle and change your case to a no-asset case. It may even take the Trustee several days after the 341 meeting to determine whether or not they want to deal with the vehicle. I'm guessing that the amount is insignificant meaning that the non-exempt portion is less than a few hundred dollars. Once that starts getting to $1,000 or more, many Trustees will still seek to administer the asset or have the debtor purchase the asset from the estate.

    For what it's worth, the Trustee gets 25% of the first $5,000 of value, not 10%. If the non-exempt portion is $1,000 then that's an easy $250 for the Trustee. It would really come down to weighted the Trustee thinks it's worth the time to liquidate that asset.

    I would not stress because it appears that your attorney is doing all the right things. It's up to the Chapter 7 (panel) Trustee to determine if the vehicle (asset) is worth something to the estate or not.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      Thanks justbroke. I know I'm probably stressing myself out for nothing. I really don't care about the vehicle. I'm more concerned that they won't exclude the death benefit from our income and we'll be forced to convert to a Chapter 13. I just want this over and done with. I appreciate your response. Maybe it's time for me to just get lost in cat videos on youtube.

      Comment


        #4
        Just wanted to pop in and let everyone know the 341 was over. We were first up at 9 AM. It was a telephonic meeting. No creditors present. Lasted 15 minutes. He asked the standard questions I've read on here. The bulk of them were yes/no questions.

        Extra questions that I haven't seen on here before but the attorney had given us a heads up to be prepared for:

        1. Why my wife wasn't working, when her last job was and why she left? She suffers from chronic migraines and was on probation for absenteeism so she left before being fired. He actually stated he too suffered from migraines, not chronic, but he understood and sympathized with her.
        2. Were our student loan debts for our own education? We aren't including them in the Bankruptcy so I assume he was looking for situations where we had co-signed for student loans for others?
        3. Why was there such an uptick in credit card usage in 2017?
        4. Who are the beneficiaries of our life insurance policies and had the attorney instructed us on what to do if either of us pass and the other collects life insurance in 6 months after filing?

        He thanked us and let us go.

        He asked the attorney a couple of questions about our signatures being on file in his office and had he reviewed the filing with us. At the end of the call he told the attorney he saw no issue with our exemptions as listed.

        That was it. It was over. I'm hoping we get some good news about the assets. He did not mention the death benefit from my mother so I'm hoping that means we still get to stay as a Chapter 7.

        And now we wait.

        Comment


          #5
          Those questions are what we call "follow on" questions. The follow-on (or follow-up) questions are based on the documentation that you provided as well as responses to the prior questions. I was asked why my adult child wasn't working! Well, he was in college in a STEM major so he lived at home. I was also asked why the spouse wasn't work... well she too had neurological and psychological issues.

          It seems as though you made it through. I hope that was a relief. I know that my 341 Meeting, once over, was a pivotal point in my bankruptcy journey and I was certainly much more relaxed after the 341.

          If the United States Trustee (UST) didn't attend your 341 Meeting to ask questions, that's usually a good sign that it will proceed as a Chapter 7. The UST is usually the entity that would pursue having a Chapter 7 case dismissed or converted because the debtor has excessive disposable monthly income (DMI) or other case issues.

          As we say on BKForum... Welcome to Club Sixty!
          Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
          Status: (Auto) Discharged and Closed! 5/10
          Visit My BKForum Blog: justbroke's Blog

          Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

          Comment


            #6
            Thanks! The attorney called and said the Chapter 7 trustee has submitted his report of no distribution so yay for that! He also said we should know within 10 days if the US Trustee will pursue having the case dismissed or converted. And from what so many others have said, I echo that justbroke's information is, as always, right on the money. Fingers crossed I get to stay in Club Sixty.
            Last edited by Drewby; 04-01-2021, 09:30 AM.

            Comment


              #7
              Very good news. The silence between the 341 Meeting and discharge can be deafening and haunting. But no news is good news when it comes to this 60-day period before the discharge.
              Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
              Status: (Auto) Discharged and Closed! 5/10
              Visit My BKForum Blog: justbroke's Blog

              Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

              Comment


                #8
                This showed up on Pacer today. I've left a message for the attorney to see what next steps are. It seems like the US Trustee could still file a statement indicating they are not pursuing and the reasons why.

                "As required by 11 U.S.C. Sec. 704(b)(1)(A), the United States Trustee has reviewed the materials filed by the debtor(s). Having considered these materials in reference to the criteria set forth in 11 U.S.C. Sec. 707(b)(2)(A), and, pursuant to 11 U.S.C. Sec. 704(b)(2), the United States Trustee has determined that1) the debtor's(s') case should be presumed to be an abuse under section 707(b); and (2) the product of the debtor's current monthly income, multiplied by 12, is not less than the requirements specified in section 704(b)(2)(A) or (B). As required by 11 U.S.C. Sec. 704(b)(2) the United States Trustee shall, not later than 30 days after the date of this Statement's filing, either file a motion to dismiss or convert under section 707(b) or file a statement setting forth the reasons the United States Trustee does not consider such a motion to be appropriate. Debtor(s) may rebut the presumption of abuse only if special circumstances can be demonstrated as set forth in 11 U.S.C. Sec. 707(b)(2)(B)."

                Comment


                  #9
                  Hmmm, to my layman's eye, that doesn't look terribly promising. Please keep us posted.
                  Latent car nut.

                  Comment


                    #10
                    I spoke with the attorney. He said the US Trustee basically had 10 days from the 341 to file this statement and are basically giving themselves 30 more days to review. They emailed him while we were on the phone with requests for additional information primarily about a defunct ESOP plan that I rolled into an IRA and a distribution my wife took from her old 401K plan in March of last year and the death benefit I received from my mother's retirement in October 2020. They want 1099s and a letter stating the death benefit was completely paid out with no future payments to come. I've just sent him everything they've requested. Fingers crossed. Now we wait again...

                    Comment


                      #11
                      Just looks like the UST is reserving their right to seek dismissal (or voluntary conversion). Just keep the fingers crossed that the UST doesn't see any reason to not allow the discharge. Hopefully the UST is satisfied with the explanations and documentation.
                      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                      Status: (Auto) Discharged and Closed! 5/10
                      Visit My BKForum Blog: justbroke's Blog

                      Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

                      Comment


                        #12
                        Got excellent news yesterday - US Trustee filed that there was no objection to our Chapter 7 proceeding. Attorney called even before it loaded to Pacer to let us know. He said our court is discharging fairly quickly and that was really the last hurdle we were facing. We should have our discharge as early as 6/2 but should be no later than 6/15. I checked Pacer yesterday afternoon and it was loaded there. This attorney has been worth every penny. I can finally breathe. Just a few more weeks to wait.

                        Comment


                          #13
                          Excellent.
                          Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                          Status: (Auto) Discharged and Closed! 5/10
                          Visit My BKForum Blog: justbroke's Blog

                          Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

                          Comment


                            #14
                            Not sure where to post this on the forum but we're officially discharged and closed. Last day to object was 6/1/2021. Pacer updated this afternoon with a Discharged notice and a Closed notice. Thanks to everyone for their comments and guidance and support. I'm relieved this is over.

                            Comment


                              #15
                              Originally posted by Drewby View Post
                              Not sure where to post this on the forum but we're officially discharged and closed. Last day to object was 6/1/2021. Pacer updated this afternoon with a Discharged notice and a Closed notice. Thanks to everyone for their comments and guidance and support. I'm relieved this is over.
                              Wow, discharged and closed all in one swell foop, I think my discharge came fully 3-months before my closure.
                              Latent car nut.

                              Comment

                              bottom Ad Widget

                              Collapse
                              Working...
                              X