I have a question someone may can help me with. I have had a lot of good information from this forum during my chapter 7. A friend of mine is currently about 3 months into a chapter 13. Only the wife filed bk, not husband. They are talking about selling a motorcycle and boat that was paid for when she filed. Now they have decided to sell them both and use the money to purchase two vehicles, because they other two are going back. Is this legal? Will the trustee want some of the money? She has spoken with her lawyer and she seems to believe that by paying a $500 or so "fee" that the trustee will let them sell the items and purchase two cars for a total of around $14,000. This doesn't seem kosher to me. Seems like if they sell and have that kind of cash, the trustee will want at least some of it. Anyone know?
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the items they had were listed in the bk petition. they were exempted in some fashion or would have had to sell them or pay for them somehow.
id imagine that its theirs to sell and do what they want with. but not sure. i do know they would have to get persmission to get new vehicles first anyways to make sure they had something to drive so they would know the asnwer ahead of time of if they should sell them or not.Im not an attorney or a trustee. You cant trust me either though!
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The trustee gets their cut with the disposable income payments into the plan. As long as the plan payments equal this dollar amount then that
"should" be their cut. I only see a problem if they convert to a 7. A lawyer would best answer this one.Comment
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can you explain this with an example. i am trying to learn more about chapter 13 plans. thanksOriginally posted by FoolAndHisMoneyIm not an attorney or a trustee. You cant trust me either though!
[x] - Done with 341? Join the 60 Day Club! ___________[x] - Im Discharged! Whoo Hooo!
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Just asking.....
I guess I was just wondering. I sold all of my goodies, like bikes and stuff before my ch7. I could have filed a ch13 maybe, kept my stuff and then sold it off. I'm not sure if this would have worked in my case though. Oh well, I hope it will work out for them.Comment
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Originally posted by bkfiler
Not sure if I was correct with swim's question. A chapter 13 allows you to keep your non exempt assets in exchange you must pay disposable income for 5 years and the total paid in the plan must be equal to your non exempt assets, in swim's case it's the bike & boat. I'm "assuming" that if swim pays at least the value of these assets then swim can do whatever swim wants with them. If swim was to convert to a 7 before the 13 plan was up then swim must have either the assets or case to give to the trustee. Again I'm "assuming" which doesn't go together with bankruptcy. Just ask all the inmates in federal prison that assumed too. LOL.
I could be way off too. If swim liquidates the bike & boat then the cash may count as disposable income.Last edited by FoolAndHisMoney; 01-19-2006, 09:23 PM.Comment
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lol inmates in federal prison hahah
isnt that in-ti-mates in federal prison lolIm not an attorney or a trustee. You cant trust me either though!
[x] - Done with 341? Join the 60 Day Club! ___________[x] - Im Discharged! Whoo Hooo!
[x] - Poll: Should I File Pro-Se ____________________[x] - New BK Law: Median Income, Means Testing and Presumptive Abuse
[x] - Zombie Debt Collectors Dig Up Your Old Mistakes _-[x] - Bankruptcy Law Resource
[x] - Need A Fast Answer? Available 24/7!--__________[x] - Dont Be A Hero On Your Budget - You Wont Get An Award!
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In a ch. 13, the non-exempt items set a minimum amount that needs to be paid back to unsecured creditors. So, there should not be a problem with selling those items and putting the $ into something else. They should only need permission to take on debt.Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.Comment
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In chapter 13, they take your assets and income, subtract your expenses and they get's what's left. Disposable income it's called.
Keeping the vehicles is based on value...your allowed a certain amount each.
But, they can not get another one that includes payments without getting the trustees permission.
the reason: because let's say you had $100 disposable income and the trustee was getting that...then you decided to take on a payment for $30...that means the trustee then only gets $70...but you say no, I can pay you your $100 and pay the $30 for the car...then the trustee will say you must have mislead them about your income...give me the extra $30/month.
Please remember the trustees "pay" is a percent of your payment each month (maybe not in all states???). So it is in his interest to get as much money from you as he can.Comment
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