Asset Question

[Pass3]

Hi!

Some posts here mention buying back assets from the estate.

How does that work, and when in the process would you be able to buy the assets ? Do you have to buy them back as a lot, or can you select specific items?

Is it the option the norm, or just the occasional lucky break?

Thanks.

[JRScott]

Generally it would be after the 341. The Trustee would let you know the value of your non exempt property that needs to be surrendered. In most cases I've heard he'll allow you a buyout of its value (this also saves him time from having to hold an auction).

[lrprn]

Some posts here mention buying back assets from the estate. How does that work, and when in the process would you be able to buy the assets ? Do you have to buy them back as a lot, or can you select specific items? Is it the option the norm, or just the occasional lucky break?

This is a discussion you need to have with your lawyer.

Your local assigned trustee controls your bankruptcy estate when you file Ch 7, and it's the trustee who decides which non-exempt items he/she will sell or allow payment for. However, local customs can drive this process as well. Your lawyer will know how this works in your district.

I'm assuming you are asking this question because you have non-exempt assets. It will help us help you better if you can give us more details. Which state do you live in? What are the assets in question? Are you sure you can file Ch 7?

[SinkingFast]

One Member actually posted about going thru paying the Trustee:

http://www.bkforum.com/showthread.php?t=5135&page=2

NC7 filed Pro Se and applied their Exemptions wrong leaving a significant $$$ value in property unprotected. Post 24 on Page 2 details the "settlement" discussion with the Trustee.

[Pass3]

Thanks for the replies.

We are in AZ. I had concentrated on which assets to keep, not realizing that some people had bought assets back, or even could do that. That puts the whole thing into a different perspective.

I would over on assets that are equipment that is owned free and clear, and would require a mover. I figure that maybe the overage would top out at 5,000. So, then my question on whether the rebuy happens often and how soon after the 341 the trustee is looking for payment. Do I pay for the moving costs for the items to be brought to the trustee?

Thanks again for the input, and I understand you folks are basing your replies on your own personal experiences.

[SinkingFast]

Most likely, everything will be done on paper. Unless the Trustee disputes your values, chances are, no one will ever go look at the equipment.

Trustees have costs to sell and BK Auction items typically don't bring top dollar. So it's easier for the Trustee to negotiate a settlement with the Debtor/Filer. You're much more interested in your property than other prospective buyers are.

Depending on the Trustee, the amount can vary anywhere from full $$$ amount to as little as half your state value. Some Trustees want to be paid, lump sum. Other Trustees will take payments over the course of 6 months to a year. Just depends on the Trustee you draw.