This doesn't make sense...

[grifterbank]

So my husband and I filed Chap. 7, yesterday, Sept.30. We used a lawyer and we are an asset case due to our two cars. The trustee is suppose to come to look at the cars, along with an appraiser, pay us our exemptions and then take the cars. So here is where my question comes in. How can the trustee take our cars BEFORE we get our discharge? That doesn't make sense to me. What if we didn't get a discharge, the would we get the cars back? I am confused...

[JRScott]

I'm assuming this is cars you have equity in more than what is owed or owe nothing on. In order to complete the bk the Trustee will have to take possession of them, sell them and distribute the proceeds after his fees to the creditors. Now it is possible he will not find sufficient value for him to bother with depending on the cars and their condition.

Note that I do not think they pay you your exemption amount until they sell the car.

[ansky0007]

How much are we talking about? Are these cars paid off? Whats the tradein value on them?

[grifterbank]

Yes, both cars are paid off and we have the titles. One is valued at about $9K and the other about $13K. The trustee WILL be taking them according to our lawyer. I was just curious on how they can take them before the bankruptcy is final. I mean, what if we weren't granted a discharge at the end? Then they have taken our cars and we still aren't free of debt?? It just doesn't make sense that they can take them BEFORE the court has granted us a discharge. I don't have a problem with it, just trying to understand this part of the process a little better...

[KP1980]

You are allowed to keep one vehicle, but in order to be exempt it has to be under your states allowed exemption. Which is appears both vehicle are above any state exemption. They do set the exemptions pretty low. Im sorry.

[BKParalegal]

The discharge has no bearing on the assets of the case. Getting a discharge from your debts does not alter the non-exempt portion of your assets. You must be in Florida or some other state with low vehicle exemption.

Good Luck

[paintinrosesred]

The discharge has no bearing on the assets of the case. Getting a discharge from your debts does not alter the non-exempt portion of your assets. You must be in Florida or some other state with low vehicle exemption.

Good Luck

So is the discharge not pending on the selling of the those non-exempt assets? Because if it takes a long time to sell those assets.. the discharge could be on hold until the moneys are disbursed.

Therefore, asset cases should still close withing 90 or so days after 341?

And do they usually come get the assets right after 341 meeting?

[grifterbank]

You are allowed to keep one vehicle, but in order to be exempt it has to be under your states allowed exemption. Which is appears both vehicle are above any state exemption. They do set the exemptions pretty low. Im sorry.

I am not upset or confused about the fact they take the cars and why. I understand and accept all of this. I was just wondering how is it OK for them to take them BEFORE our 341 meeting and most of all, BEFORE our discharge?

Maybe I have an unclear understanding of the whole process, but hypothetically lets say that they take our cars, sell them, and give us our exemption checks which is what our attorney has told us will be happening. And then, after this takes place, we aren't granted a discharge. Then we would be stuck back at square one, owing all of our debts, like we never filed, but yet with no cars which technically are ours. There is just this gray area for me and I am having trouble understanding ONLY the timing of the process, not the how or why part of the process.

[BKParalegal]

The 341 meeting is to determine dischargeability of your debts from the Trustee's perspective and to determine if their are assets in the case. If you filed your BK as an asset case and listed the cars as such , then the trustee doesn't have to wait for the 341 meeting to seize the assets. In regards to your discharge, liquidating assets, has not effect on whether or not your debts are discharged. You can and will be discharged before the assets are liquidated.

Good Luck