Turning over assets

[FLGirl]

Does anyone know, from witnessing a 341 or whatever, if you are asked to turn over assets, namely cash, and don't have it on hand, will they set up a payment plan?

[FloridaGirl]

Think long and hard about what you just asked. Let's say you had a car you owned outright and you had more equity than your state's exemption allowed. Let's say you had to pay the trustee 3000 dollars in order to keep your car. Wonderful! Then, what do you think would happen if you offered to write her a check that very moment? She would want to know where in the heck you got an extra 3000 dollars, especially if you didn't have 3000 dollars listed anywhere as an asset. That being said, no trustee would expect a person going through BK to have thousands of dollars at their immediate disposal, and technically, if a person has that much extra cash on hand, it should already be listed as an asset which is already up for grabs. So basically, it would be expected that a payment plan would need to be set up for something like this.

Now, if you are talking about having straight cash as a listed asset, then I think the trustee would make you turn it over all in one lump payment. If it isn't exempted, and it is something that can be turned over immediately, then that is probably what would happen.

[WorkinOnit]

I think what FLgirl is asking is about cash on hand at the time of the filing which is no longer available. Spent on ling expenses, etc.

I think that would be determined by what you were able to exempt in your schedules. When I was waiting for my 341 I observed one case where the trustee wanted the money that was in the bank on the day of filing. Of course I don't know the specifics of the case, but the trustee seemed p.o.'d with them right from the start, especially their attorney. I surmise it may have had something to do with discrepancies contained in their filing and backup documentation (if any).

(cut and paste from my narative of my 341 posted on 10/11):

[sunshine08]

What are your exemptions? Does yur state have a wildcard? What about other areas of assests?
I still think at the rate you are stressing that you will be close to a nervous breakdown before 341 meeting. I know hind sight is 20/20 but an attorney and/or research before you filed would have prevented much of this. I can see by your post that you have alot of serious concerns and questions, wish we could give you the magic answers.