2024 hearing

[tp8267]

My husband works for a few dollars over minimum wage and I have been a stay at home mom for the past 12 years. We have 2 young adult children living at home attending college and a minor living at home. We filed for BK in Aug. After going to the 341 hearing the trustee froze my husbands settlement annuity he has been receiving since he was 17 and scheduled a 2024 hearing. (Our lawyer mistakenly listed the $$$ under income instead of annuities. We filed and amendment to correct the mistake). We rely on that money to pay our bills. the trustee told our lawyer that they want to keep the settlement money because if I went back to work we would have enough money to pay our bills. Also, he asked me what my 20 year old daughter spends her money on (she currently lives at home attends school but has a part time job) My question is....was the trustee out of line? Why does my daughter have to disclose where she spends her money? Is it my right to be a stay at home mom? Again, I have not worked in over 12 years. Any advise or information would be greatly appreciated

[LadyInTheRed]

You cannot be forced to work. But that annuity is an asset that needs to be exempted if possible. Any non-exempt portion can be taken by the trustee. Your profile says you are in Michigan where you can chose federal bankruptcy exemptions. According to my quick research, Federal exemptions include "any award for the loss of future earnings you need for support". If the settlement designated the annuity to be for future earnings, that may be helpful. If you already chose state exemptions, I do not know whether you can amend your petition to use federal exemptions instead. Ask your attorney about that and whether there are any other state or federal exemptions that may apply.

How your daughter spends her money is relevant if she is using it to pay rent or otherwise contribute to the household, so the question is not out of line.