Creditor Objection, Ch 7 dismissal

[originalhealer]

Okay,

I have two questions:

The pawn shop objected that I exempted my jewelry. Of course, they only lent me about $200.00 for it, but when I tried to exempt it, they wrote a letter to the courts saying it was actually worth at least $1200.00. So, I updated my list of exemptions and included the wild card exemption to cover the jewelry ($1100.00)!

So, now, since I'm still in my Bankruptcy, can they just take the jewelry, or do the courts have to agree to their objection? Will there be another hearing?

My second question:

I have one more payment to make because I am paying my filing fee in installments. If I don't make this last payment, my case will be dismissed, right? Is it a crime not to make your payment?

Thanks

[HHM]

No, its not a crime to not make the last payment. But yes, your case will be dismissed if you don't make it.

As for the pawn shop, why would they care what the value of the jewelry is...since the collateral is in their possession, their lien will survive the bankruptcy.

[originalhealer]

Are you sure about that? They sent me two copies of a scary letter that they sent to the courts objecting to the jewelry exemptions that I listed on my schedules.

[originalhealer]

They are still covered under the automatic stay, right? They never filed a motion for relief.

[StaciMM]

Perhaps they're just trying to make trouble for you-trying to up your asset count.

[HHM]

Exemptions only matter for unsecured creditors because its the unsecured creditors that are looking to liquidate assets to get paid. Secrued creditors have priority over the specific assets on which they owned money.

If anything, I would think the pawn shop would want to have a low value assigned to the jewelry, becuase if the value exceeds the exemption amount, then the trustee can move the court to take the jewelry free of the lien of the pawn shop.

In either case, I don't think it matters. Yes, they are covered by the automatic stay, but because they are in possession of the property, you cannot move the court to avoid their lien. The debt is a secured debt and you will either have to pay it or give up the jewelry.