Changed to Asset Case after Discharge

[kmbk2b]

I know I've asked this before, but I didn't get any responses so I thought I'd try again and see if anyone new can help. :-)

We were discharged a month ago and the TT is selling the home we surrendered. Once the home is sold, our attorney has advised us that our case will become an Asset Case (it's still listed as "no asset" on Pacer, since that's how we filed -- the TT hasn't filed any interim reports or anything related to assets).

Has anyone had their case converted to an asset case AFTER discharge? What happens to any other potential assets? We were able to exempt everything, however, in our 341 it was clear the TT wasn't super happy about some of the values we used (he asked us for appraisals). The TT didn't file any objections to our exemptions, however, I read that the Supreme Court recently ruled that TTs can STILL go after assets if they feel they were undervalued, even if they didn't object to the stated values.

Confusing. Help? Anyone? Please???

[researchnerd]

Do you have equity in the home? Will there be anything left after it's sold?

[kmbk2b]

No equity, but the TT has negotiated a short sale and is "carving out" proceeds for the estate (to the tune of 20K!). That's what will make it an asset case....

[justbroke]

It really is irrelevant between discharge and an asset determination. A discharge just relieves the debtor of dischargeable debt. The asset determination is a declaration that the Estate has money -- or will have money -- from the liquidation of non-exempt assets. Generally speaking, asset determination is usually completed before a discharge, but a discharge doesn't affect any asset determination.

I would not call it being "converted" to an asset case, since it's not converted. An asset determination is what is made.

Until the Panel Trustee (Tee) decides to abandon all the assets of the Estate, and do so by filing a Report of No Distribution, the asset determination remains open. Once the Tee determines that there are assets to administer, the Tee will set the claims bar date by which the unsecured creditors must file claims.

Once the case is closed, the Tee wouldn't be able to go after assets as they revert back to the Debtor. The only way a Tee can re-open the case after closing, is for cause. This is actually pretty standard the way your Tee has approached this. While I don't really like seeing Tees who negotiate a short sale, so that there is some money to administer (so that they make money), I do feel for them since they only make about $60 per case. That's not a lot of money in the grand scheme of things. They do have to maintain a staff and office as well. Many Tees are also practicing bankruptcy attorneys, so that helps offset the potential losses on their cases.

[billycool]

I have a related question

When the UST decided not to pursue my case further and withdrew her Motion to Extend, according to my lawyer she came down hard on the Panel Trustee for not properly administering my case with regard to assets. He had it listed as 'no asset' when he's holding $5500 of garnished wages and there's some small amount of equity in my truck.

Here's my question. My attorney used my $2,000 exemption against my truck, but then another $4,000 exemption (which may have been a homestead or some sort of wildcard exemption? I'm in VA, btw) and he now says that the TT is going to challenge the exemption, by which I assume he means the $4,000 exemption. Does this sound right to you, and anyway, hasn't the time passed when exemptions can be challenged?

(By way of background, my truck is probably worth about $11,000 and also has a $2,000 lien against it.)

[justbroke]

The unused homestead exemption is $5,000 in Virginia (plus $500 for each dependent). The Trustee is probably going to argue that you can't combine the $2K vehicle exemption with the $5K homestead exemption. In other words, use one or the other but not both. I don't see anything in the little I read that the $5K can't be used on "any property". In fact, it reads that it CAN be used for any property.

The deadline to object to exemptions should be on your Notice of Bankruptcy. It should be 30 days from the conclusion of the meeting of creditors. If your 341 Meeting isn't concluded, then they still have all the time necessary. If your 341 meeting was concluded more than 30 days ago, the Trustee is time barred.

[billycool]

the 341 was about 80 days ago....I'm discharged

Sounds like the Trustee is time-barred........thanks.

The unused homestead exemption is $5,000 in Virginia (plus $500 for each dependent). The Trustee is probably going to argue that you can't combine the $2K vehicle exemption with the $5K homestead exemption. In other words, use one or the other but not both. I don't see anything in the little I read that the $5K can't be used on "any property". In fact, it reads that it CAN be used for any property.

The deadline to object to exemptions should be on your Notice of Bankruptcy. It should be 30 days from the conclusion of the meeting of creditors. If your 341 Meeting isn't concluded, then they still have all the time necessary. If your 341 meeting was concluded more than 30 days ago, the Trustee is time barred.

[billycool]

well, wait a second...

What do you mean when the 341 is 'concluded'? I assumed it was concluded when it was over and I walked out the door. Is there some other langauage I should be looking for on Pacer to determine whether the 341 was 'concluded'?

[angles]

same question here...how do you get confirmation that the 341 was concluded?

[justbroke]

Check PACER on the Deadlines/Schedule link. The 341 Meeting should show satisfied and/or terminated. Usually, you know because the Trustee tells you that the meeting is concluded at the end, so that it's recorded.

[kmbk2b]

Thanks, Justbroke!!