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Chap 7 Hearing Today - Question

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    Chap 7 Hearing Today - Question

    Just had my 341 today and overall I think it went okay. Due to the vehicles I claimed (my only assets in life) the trustee really focused on them and made the comment that he thinks I understated the values so he wants pictures of them. He got a real kick out of it - because some of them are considered somewhat collectable. I guess depending on the further info I provide he will decide if he should send someone out to appraise them in person - not sure of the outcome yet. But that was all he really had to pick on - the rest went fine. After viewing the list of vehicles he stated "It looks like we have an asset case here..." Which my attorney and I expected and that I plan to purchase the vehicles back.

    My question is - since the trustee today didn't say anything about the possibility of pushing me into a Chapter 13 can I assume he is going to accept the Chap 7? Not sure if this can come up later down the road? (Thanks in advance - I forgot to ask my attorney this question after the hearing and I am not able to contact him - don't want to be wondering over the long weekend!)

    Overall - I would say the hearing was not that bad - sure, you're on the hot seat, but if you just answer everything honestly and don't try to confuse yourself that is the way to go.

    #2
    Whether or not the Trustee could push for Ch 13 really depends on your own personal circumstance. Income to Median ratio. And/or Secured debts you owe on. Priority debt payments like back taxes and such. So we can't really give you an answer there. BUT, if the Trustee didn't say anything about it today, chances are you're headed on down the Ch 7 path.

    On your vehicles,............ The Trustee will make a decision about your values. In addition to the pictures, if the cars run and you can do it, I'd suggest you get some "Cash. On the Spot." type of offers, in writing, from Dealers to send along with the pictures. If there are things wrong with the cars, be sure who ever gives you a written estimate duly notes the defects.

    Our attny dinked the values of our vehicles based on "repairs estimates" we provided for things that were wrong with the cars. In one case, it brought the value of the vehicle down by over 50%. With the repair estimates attached to our BK paperwork, the Trustee didn't even blink an eyelash about the values our attny assigned on our vehicles.
    Filed Ch 7 - 09/06
    Discharged - 12/2006
    Officially Declared No Asset - 03/2007
    Closed - 04/2007

    I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

    Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

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      #3
      SF - thanks for the info and that is a great idea on the vehicles.

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