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So the Trustee took a bite out of my ass...nobody else's

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    #16
    First, my sympathies on an especially unpleasant 341 hearing. You're in better shape than the lady with the handbags, at least. I'll bet the "creditor" was the attorney for the UST and her case is on its way to dismissal with prejudice for fraud. Anyway....

    Originally posted by Dollar Bill View Post

    After all the standard questions, she asked if I knew what amount of my petition on shedule F was for business debt. I mentioned that I believe it's over $700k. She seemed to have agreed. Why she asked...I don't know.

    As rfassett eluded to, you can be dismissed for abuse only if the debt you're seeking to discharge is primarily consumer (personal) debt.

    Originally posted by Dollar Bill View Post
    (The biggest issue of my petition is property that I hold "BARE LEGAL TITLLE" to that is my parents. This property was placed in my name at 20 years old. I was a college student at the time. Why was it placed in my name, I have no idea. My parents had a lot of property then, I assume they didn't want too much in their names. This property is special to the family, but literally is not mine.)
    If your name is on it, it's yours in the trustee's eyes. It doesn't matter what the circumstances surrounding the property are. Unless there's a ruling in your district on bare titles, this will likely need to be decided by the judge.


    Questions:

    1. Do you think she is pissed due to my amount of debt in my petition? She asked if I knew how much was business debt before jumping into taking my parents property away. Pissed? No. Suspicious? Yes.

    2. If we showed her proof that teh county says the property is worth $52k, and she says no....lower at $36k...should that mean she wants to make a deal with me personally and lowered it to $36k? I would think that she would play the game and keep it at what I said. She is required to do what is in the best interest of your creditors.

    3. I believe I am the poster child for what BARE LEGAL TITLE IS in Bankruptcy cases. My parents have always paid the taxes on the property...even to this day. My dad has been renting some of the mobile homes on the property and pockets the money. They put it directly into his checking account every 3 mos or so. The property tax bills are mailed directly to him out of state w/ my name on them ofcourse. He takes care of the property because it is his property. Again, unless there's a ruling on this or you can offer up other assets for liquidation, I think this will be a battle. That's not to say it's a battle you can't win, but I don't think it will be easy.

    4. I need some opinions if you don't mind.

    I was thinking to remove my $20k in exemptions to the cover the property. I would then have a $16k balance that I can't pay or afford. I can pay an attorney ...what $2500 hopefully less to help me prepare an answer to her petition to take the property. I'm really not sure what to do at this point. I just know that we can't lose this property for a number of reasons.

    I understand how important the property is to you, but you may be forced to choose between it and your discharge if you can't reach some kind of compromise. Bear in mind that in order to "win against the trustee", those cases had to go in front of the judge, with additional attorney's fees for litigation.

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      #17
      Thanks for the info and insight.

      At this point I am going to speak to a Real Estate Atty, and weigh my options. The discharge is far more better than the 36k.

      I guess I'd do my damdest to get the money if it ever went that far.

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