Golf from Texas

[golfgolf]

Hey Ya'll. I have completed all of my paperwork and turned it into my attorney. I have yet to take the debt managment course but I plan too soon so that I can officially file.

Once my possesions getlaid out to my creditors, what happens?

Do the creditors pick a posession and just tell me to sell it and bring them the money or do they take the item themselves?

How do the creditors get my possessions? Do they get to come to my residence and take them?

I am just curious how my things are going to be taken over.

Thank You.......

I Love this Forum.

[iplk70]

First of all Texas is a good state to claim BK in. You should have some good exemptions.
As far as your possessions etc... the Trustee will either liquidate, or abandon items.
The money will then go to pay the creditors.

[lrprn]

Once my possesions getlaid out to my creditors, what happens?

Only the financial information listed in your bankruptcy filing gets "laid out" to your creditors and then only on paper. No one is going to come look at your personal belongings in your home except under VERY unusual circumstances.

Do the creditors pick a posession and just tell me to sell it and bring them the money or do they take the item themselves?

Your creditors have nothing to do with your "possessions" - only your trustee.

Depending on how much of your financial holdings (assets, belongings, cash, etc) your lawyer was able to protect using Texas exemptions, that's what decides what you get to keep and what will be liquidated or taken by your trustee. Again, the creditors do nothing directly in this process.

How do the creditors get my possessions? Do they get to come to my residence and take them?

If the "possession" is a loan-secured asset like a home or car and you surrender them or they can't be protected by TX exemptions, then the creditor asks the court to lift the bankruptcy automatic stay, then they foreclose on the home or repossess the car. If you have belongings that can't be protected by TX exemptions, then the trustee will put them up for auction.

Creditors and the trustee will not be coming to your home to look over your personal belongings unless the belongings can't be protected by Texas exemptions - for example, you own valuable jewelry, furs, art, etc. that have higher value than Texas exemptions allow.

Take a look at the current Texas bankruptcy exemptions here - http://www.bankruptcyinformation.com/TX_exemp.htm

Also it would be a good idea for you to do a little more homework on how bankruptcy works rather than depending 100% on your attorney to make all the decisions for you - that can be a risky thing to do. Here's two good places to start to learn the basics -

Ch 7: http://www.moranlaw.net/chapter7.htm and http://www.uscourts.gov/bankruptcyco.../chapter7.html

Ch 13: http://moranlaw.net/13workings.htm#C...013%20practice and http://www.uscourts.gov/bankruptcyco...chapter13.html

Keep asking questions - we'll help you sort things out as much as we can. Also keep asking your lawyer questions - he/she is the best source of information since they know all of your specific financial information plus know what's going to fly with your local trustees and bk court.

[keepmine]

It's the CCCS counseling you take prior to filing. The debt management course is taken later-usually after the 341.
Tx. is very debtor friendly. You'll likely have no personal property at risk.

[ssdsco]

A related question...

Let's say you have $14k in exemptions for any real or personal property. You have a second car with $7k equity, ATV worth $4K and $5k in household items at garage sale prices for a total $16k. $2k worth of property is not covered by exemptions.

If the trustee wants $2k my desire would be to tell him to pick up $2k worth of household goods that we select. Our post BK budget can't support all this "stuff" anyway. Is that possible or would the trustee take the car or ATV and liquidate, take his $2k and give me the rest or would something else happen ?

Thanks !

[lrprn]

If the trustee wants $2k my desire would be to tell him to pick up $2k worth of household goods that we select.

You don't get to ask your trustee to do anything.

As of the day you file, your trustee is the captain of your financial ship until your case is discharged and closed. He/she will liquidate whatever cannot be protected by your state's exemptions if he/she thinks it's worth the dollar return. You have no choice in the matter.

[ssdsco]

Can I specifically tag the car and ATV to the allowable $14k in exemptions ? If so could the trustee still liquidate the car or ATV instead of liquidating household goods that wouldn’t be covered by any exemptions ? I guess what I’m asking is who gets to cherry pick the assets that will be covered by the $14k real or personal property exemption ?

Based on advice from the forum I down selected an attorney who is also a trustee. My first meeting is next Tuesday. I’m trying to layout some thoughts for the assets before I meet with him.

Irprn, Thanks for your great support of this forum !!

[lrprn]

Can I specifically tag the car and ATV to the allowable $14k in exemptions ?

In TX your exemptions allow "1 two-, three- or four wheeled motor vehicle per member of family or single adult who holds a driver’s license (or who operates vehicle for someone else who does not have a license)" - http://www.bankruptcyinformation.com/TX_exemp.htm

Let's say you have two licensed drivers in the family....then I believe you can pick and choose your way through your vehicles and ATVs to decide which two you are going to keep as protected under your exemptions. Be sure to ask your lawyer when you meet with him this week. There's so much local variation in how specific exemptions can be worked, it's the only way to get a truly reliable answer to your question.

If so could the trustee still liquidate the car or ATV instead of liquidating household goods that wouldn’t be covered by any exemptions ?

The trustee is going to liquidate whatever gives him/her the best $ return on the time and resources it takes to sell the item(s). The trustee will be the "cherry picker" once you select which vehicle assets you want to cover with your generous TX exemption.