What prompts the trustee to object to your exemptions?

[lotsahats]

Can the trustee object to your exemptions, even if you're well within the limits?

I don't have much in the way of assets, other than my $3,500 car, and my tax refund. In my state, there is a $10K wild card exemption for personal property.

Well, after doing a bit of reading on this forum, I'm a little worried. (Shocker, I know. "Worry" will be part of my vocabulary until I get my discharge.) I get the impression that, even though my only two assets are more than covered by the wild card, the trustee can object. Is this true? Can the trustee really say, "I don't care if your tax refund is exempt, I want it"?

I was planning on using my refund to put work into my car (brakes, and a timing belt), and pay for an attorney. What if I do all that, thinking I can (because my refund is supposed to be exempt), and then, at the 341 meeting, the trustee asks me to cough it up, and I don't have it?

Can somebody please shed light on this?

[LadyInTheRed]

Please, try not to worry so much. The trustee will only object to your exemptions if they aren't supported by the law or he thinks you undervalued an asset. There won't be a dispute over the value of a tax refund. If the refund is covered by your state's exemptions, you have nothing to worry about.

Everything is going to be OKAY!

[keepsmiling]

Deep breath, hats
You WILL be fine.
((((hugs))))))

[lotsahats]

Please, try not to worry so much. The trustee will only object to your exemptions if they aren't supported by the law or he thinks you undervalued an asset. There won't be a dispute over the value of a tax refund. If the refund is covered by your state's exemptions, you have nothing to worry about.

Everything is going to be OKAY!

Thank you, Lady.

Deep breath, hats
You WILL be fine.
((((hugs))))))

Thank you. This whole mess is making me crazy.

[SMinGA2]

Sounds like you plan to use the tax refund for needed expenses before filing. Keep records, but you probably won't even need them. DON'T use it to pay back your best friend or father. And now is not a great time to take a luxury cruise. But otherwise, it should be a non-issue.

As for exemptions claimed: assuming your attorney uses the proper codes and you don't under value items, again expect it to be a non-issue. Your attorney will probably group things, such as 'clothing, $X; various furnishings & household items, $Y;'. Vehicles and jewelry and other things that might be considered valuable should be listed with more detail than your 5 year old furniture.

And rely on your attorney to know how your district values vehicles. NADA, KBB, Edmunds, something else?

I've heard of situations where trustees got annoyed because a petition listed NOTHING. Bad idea. Maybe those filers have inept attorneys or they think that since its exempt, they don't need to bother to make a list? Not that you need an itemized detailing of everything you own, but unless you can pack all your earthly possessions in a brown paper bag, you should have some misc. personal property to exempt.

[momofthree]

No worries! Like the others stated, if you're under the limits there is nothing the trustee can do. He can object to a valuation, but if you're being honest and accurate, you won't have any issues.