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341 OVER, but trustee wants our boat re-assessed!

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    341 OVER, but trustee wants our boat re-assessed!

    341 was yesterday, went smoothly and took about 10 mins max. Standard questions first, then he questioned the value of our one asset, our boat. We paid $15k for it 4 years ago, when we "thought" it worked properly. One engine over heats when it's on for more than 5 mins, or whenever we are at idle, and shuts itself off. It's a 1974 boat, old, all original cushions in poor shape, interior, appliances, etc... absolutely no upgrading done to it as we cant afford it, and actually use it more of a camper on the water. Gas gauges don't work, generator doesn't work, hot water tank doesn't work, etc... We rarely take it out on the lake because of the overheating issue, hard to navigate on the river we are on with only one engine. At our attorneys suggestion, we paid for a professional appraisal on the boat, by a company that most trustees in the area use when they order appraisals. They gave it an auction value of $4500. OK, cool, we can put it under the wild card exemption. Also, my husband filed ch7 solely in his name, and the attorney said that he's ready to argue that 1/2 of the equity in the boat is mine.

    Well, the trustee is ordering another appraisal on it, "just to be sure". Attorney said that he's not sure where he's going with this, as the company that we used are "rock solid, respected, and he can't imagine that it was incorrect". Even if they were off by a bit, we still have about $4000 in unclaimed wild card left. Then, if the attorney argues my 1/2 equity in it, we're back at the $4500 or even less.

    So, we shall see, but this is just another thing to stress about. We LOVE this old boat, it's our family time even if we rarely ever leave the dock, it gets us out of the house in the fresh air where we can hang out with friends on the cheap, etc...

    Another important note, our mortgage company didn't send ANY reaffirmation paperwork. We modified our mortgage the month before we filed, it's fully in place and filed, etc.... They stated when we did the mod that they wanted a reaffirmation agreement signed after the bk7. But, they didn't send any paperwork, as expected. We actually haven't heard a word about reaffirming at all, in over 3 months. The attorney said he would contact the bank, but I'm actually thinking of just ignoring it, thinking that it somehow got lost in the shuffle of the modification. We can address it if and when they figure it out. Thoughts on that??? Should I tell the attorney NOT to reach out to the bank?

    One last question, no creditors showed up at the 341, what does this mean exactly? I'm confused on this issue. Do they still have time to file something? Or by them not showing up does it mean they aren't going to fight it?

    Sorry for the long post, any thoughts or advice is much appreciated. Thanks!

    #2
    Glad your 341 went fairly smooth but sorry to hear about the boat needing appraised again. Sounds like your attorney is ready if there are problems so I would not worry.

    As far as the bank, it sounds like the attorney wants to contact them to get everything resolved. That would be your decision wether you want him to do that. I did not reaffirm mine as per advised on the forum so my opinion would be just to let it go. You may feel differently.

    No creditors showing up is pretty standard and really means nothing. Creditors still have 60 days from your 341 to file objections to your discharge.

    Good luck!
    Filed CH 7 4/15/11
    341 5/23/11
    DISCHARGED & CLOSED ON 7/27/11

    Comment


      #3
      Regarding the boat - frankly, ANY boat (or ATV, or jet ski, or RV, or...) would draw scrutiny from a Trustee. Since it would normally be considered a luxury item (unless it was necessary as a commuter vehicle for your job at the lighthouse) I would expect the Trustee to dig deeper on it. Placing a value on a boat is difficult at best. In this case, I would not be terribly concerned, as the worst thing that might happen is having to pay the Trustee a little bit in order to keep it.

      Now... a lot of people will read this thread because the same thing is happening (or they fear the same thing WILL happen) to them, so I'll see if I can make a suggestion. When getting an appraisal for anything, make sure the appraisal states WHY the item was appraised at that value. It may not be necessary (or prudent) to file that explanation with the BK paperwork - don't do the Trustee's homework for them - but it is always a good thing to have it ready should the need arise. And, it may save you the hassle of another appraisal.

      Comment


        #4
        Good advice btbeme. In our case we took photos of the damaged vehicle to help explain why we gave it a lower value than the BB. We also had a shop estimate to repair it and deducted that amount from the auction price and listed the bottom line value in our petition. No problem so far...

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