Redeeming Property with the Court??

[SinkingFast]

We got a rather pleasant surprise yesterday. Our old state, Missouri, updated their allowable exemptions for BK last summer. We get HIGHER dollar amounts in lots of categories. WoooHooo!!

Still, if we get to go Ch 7 and we wanna keep all 4 vehicles, the attnys have said we'll have to redeem some value in the vehicles with the Court, above our allowable exemption. I know from reading at another site that Trustees do some paperwork on property they receive. They post the FMV and deduct sale costs to estimate proceeds that the Court will receive. The specific example I read was in regards to a house. The Trustee listed the Market Value, then deducted the mortgage and all resonable sales costs, including a Real Estate commission, to determine how much the Court should receive. The article went on to say that Court estimates are often wrong. The property being sold does not bring the full amount the Court anticipates.

Is it possible that the Court could want to go quick and dirty so to speak?? Tell us, "You pay us $1000 and they are yours." when the actual FMV difference is $1500 or $2000 just so they don't have to mess with a sale.

Anyone have any experience with this area??

[Minnymouth]

When the Trustee seizes you property he has to do the following:

He has to petition the Court to seize it.
The Court has to approve it.
He has to petition the Court to sell it.
The Court has to approve.
He has to hire an auctioneer or dealer to sell merchandies.
This has to be Court approved also.
The auction or Sale is approved by the Court.
Trustee has to file a report with the Court of the Sale and outcome or proceeds received from the sale.

YOU AS A DEBTOR - have the right to know - how much they made off the sale and and who got what of the proceeds.

ITS CALLED ACCOUNTABILITY..... if they don't want to tell you or do not notify you....... MAKES WAVES...........

[bkfiler]

The article went on to say that Court estimates are often wrong. The property being sold does not bring the full amount the Court anticipates.

Is it possible that the Court could want to go quick and dirty so to speak?? Tell us, "You pay us $1000 and they are yours." when the actual FMV difference is $1500 or $2000 just so they don't have to mess with a sale.

Anyone have any experience with this area??

lol, what a suprise! court lists the price higher then actual value? i wonder why that is. roflmao. bastards.

anyway, yes you can deal with the court. they do it all the time. they would rather have cash in hand then have to deal with and pay for an auction to sell it, etc.

be sure to not offer more cash then what you have listed on your bk petition or he will want to know where it is coming from.

[SinkingFast]

We actually discussed that with one attny. Where the money would come from, that is. We don't have the money to redeem the extra equity in the vehicles. It would have to be a "gift" from relatives. The attny didn't seem to think that would be a problem. I just wondered if the Court would negotiate it out without having to send it to sale. The Court will have expenses and sell for an undetermined amount one way where they could get a known amount of cash the other way. It's quicker as well and everybody get's to line their pockets faster.

When the attny mentioned redeeming the equity with the Court, they talked like that would be part of the deal going in. Since the conversation moved on to other matters, we completely forgot to ask how it would work.

[bkfiler]

heres how it works:

you tell trustee you will give him cold hard crisp cash and show him an example of a fresh new $1 bill -so crisp that it would slice his finger off if he grabbed for it too fast (which he may try to do so be warned)

trustee then starts drooling uncontrollably from all sides of his mouth as his lips turn up with a smile and his eyes start rolling back in his head at the smell of money.

keep flashing the $1 bill around while talking to him. he wont be able to focus as much.

[SinkingFast]

You are too funny, BK!!

I'll have to take a bill I have laying around, wash it so it's good and clean, then starch and press it so it's nice and crisp!!

[StaciMM]

I don't think you should start out by offering to redeem from the court. First, wait and see if he is interested. Don't want to pay for something if he wasn't going to go for it.

[SinkingFast]

Good point, Staci.

I didn't know exactly what the attny meant. She just said we'd prolly need to be prepared to redeem some of the value of the vehicles if we wanted to keep them all. She didn't explain further, and that was in the middle of other stuff, so we forgot to ask how it would all work. I guess if do retain her, she'll explain how it will all work as we go along. But you're right. Best to list everything and see what they ask for, then to offer in advance. May come out cheaper since they do have costs involved to sell things.

I read at another website, an attny's website, same thing JimH has been saying. List it all, exempt what you really wanna keep, and then see what the Trustee goes after. Often times, with household goods, it's not worth their trouble, so you get to keep everything, exempt or not. But I can't find anything anywhere about how negotiations work to keep property that wasn't exempted without it going thru a sale. And we got the feeling when the attny was talking, that our "redeeming" the equity in the vehicles would be a negotiated thing, between the attny and the Trustee.

[Minnymouth]

All "yokes" aside the attorney and trustee each come to an agreement on how much THEY can make............
you pay the bill...........

[SinkingFast]

All "yokes" aside the attorney and trustee each come to an agreement on how much THEY can make............
you pay the bill...........

I kinda fig'd that, Minny. But still we may come out cheaper than if we had to pay what they "think" they might bring at auction.

I just get sick every time I run across you "Home Sale" thread and see everything you've gone thru. But you've survived and I find inspiration in that. We will get thru this too.