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341 Today- Not quite sure how we did...

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    341 Today- Not quite sure how we did...

    We had our 341 an hour ago, and we're not quite sure if there's anything to be concerned about. We didn't get a chance to talk to our attorney afterwards, so we're waiting to hear his thoughts.

    We at least have the nicest trustee in our area. But he did ask us a few questions that have left us unsettled and nervous about what he's thinking.

    We have 5 rental properties currently. 2 in state that we manage, and 3 out of state that have been sucking us dry for 6 years that are currently managed by our 10th property manager.

    When he looked at the list of real estate, he asked for the value that we purchased each property and asked if the property was occupied. For the properties out of state we told him that we didn't know if they were occupied because they are managed by a property manager. He then said, "Well doesn't the property manager send you rent or statements" We told him that we get notices telling us just how what ever rent was collected had to go to all these repairs, and when we try to call the property manager they don't return calls.

    For the 2 properties in state, he asked if they were occupied. We told him they were. He asked what we were receiving for rent. We told him what they rent amount was, but we weren't receiving any rent. We told him that when we knew we weren't going to be keeping the properties, we instructed the tenants to pay the rent to the bank. (This was what our attorney told us to do) Our attorney jumped in and said we have no knowledge of whether the tenants have paid the bank. He said that the rental amount was more than what the mortgage was and wanted to know what we did with that money. We told him that before we stopped receiving rent, the excess from our in state properties went to help pay the mortgages of the out of state rentals, and we supported the difference and no longer have the ability to do that.

    We're confused about what he's looking for. He didn't go over any of our P&L or Balance Sheet, which would show just how much we lose every month with these rentals and that we have been personally subsidizing them forever!! Is he looking for income we didn't include?

    From the appearance, I would guess that he had never looked at our file until we sat down in front of him. And that he just opened up the file looked at any assets quickly to see if there was anything meaty and stopped on the rentals. I was surprised that he didn't ask anything about their value now and how we got that value. We did notice that he asked that of people who bought their properties a over 10 years ago. So, we're assuming he's not to concerned about our properties having any equity. He didn't ask us to provide any documents.

    So what do you think he's looking for in his questions? Will he most likely keep digging and want more info? Where in PACER does he make a comment about "No Assets to Distribute"?
    12/2/09- Filed non-consumer Chp. 7
    1/11/10- 341 Hearing
    1/21/10- Confirmed No Asset
    3/12/10- Discharge date

    #2
    I guess I stumped everyone as to why the trustee would be asking those questions. My attorney said that one of our properties showed a bit of equity, around $11,000, so the trustee is asking more questions to determine values. I wouldn't think that he would even get very interested in $11,000 in equity as it wouldn't leave him with anything after paying the real estate agent.
    12/2/09- Filed non-consumer Chp. 7
    1/11/10- 341 Hearing
    1/21/10- Confirmed No Asset
    3/12/10- Discharge date

    Comment


      #3
      Our trustee asked for our bank statements and he did ask us about rental income. We did not have any income, and the place was vacant. Did he ask for banking statements to support your claims of no rental incomes?

      Comment


        #4
        No, he didn't ask for any banking statements at the hearing. I suppose he could ask for them at some point after the hearing. Did your trustee ask you for the statements at your hearing? Did he ask for anything after the hearing?
        12/2/09- Filed non-consumer Chp. 7
        1/11/10- 341 Hearing
        1/21/10- Confirmed No Asset
        3/12/10- Discharge date

        Comment


          #5
          No, we got a letter in the mail telling us to bring our banking stmts to the 341. We never heard another word after that. We had nothing in the bank, and no one was paying so it was over with. I would suppose they check on that sort of thing, but as long as your not making anything you should be fine.

          Comment

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