New here, Made a mess of things

[NC7ProSe]

I have been reading this forum for quite a while and I truly appreciate it. I will try to keep this as short as possible.
We filed jointly, pro se on 10-14-05 in NC (not by choice, no atty's available in our price/time range), listed as No Asset. Disposable income: 88.50
Had 341 on 11-16 and were the worst in the room. Trustee said my paperwork was fine but gave rise to questions. He asked us to provide:

2004 & 2005 bank statements - all
1 year 401k (2 of them) statements
1 year IRA statements (1)
1 year College fund (UTMA) statements
2004 tax filings
Copies of 1987 boat/trailer titles

He gave us 10 days to do this, we sent in 6 days. On 11/30, the Trustee filed "Application w/Affidavit to Employ Attorney" (which was his firm) and was granted this on 12/01. On 12/07, Trustee filed "Objection to Debtor's Claim of Exemptions", citing objections to 4962.00 worth of property (boat, trailer, timeshare, cash on hand <for bills> 2662.00) which he states I have exempted under a wildcard which wasn't available. He requested the funds as payment for his services since he hired his firm to represent him in our case. I believe he may be correct in stating the exemption was used up (I amended sched. C twice trying to keep son's college fund, can see where I messed up). We were given 10 days to respond, and a court date of 1/26/06. On 12/11, Trustee filed "Amended Notice of Hearing", giving us until 1-03-06 to respond. We kept with the original date and filed our response stating our misinterpretation of the wild card, and amended schedule C to reflect corrections:
-Decreased Homestead Exemption from 15,000.00 to 10,000.00
(owe 134,000.00 secured, tax value 147,300.00), thus allowing 3500.00 for wildcard.
-Used wildcard for objected exemptions and added NCGS 1-362 to exempt remainder of cash as "support of family".

I am sooooo in the dark here, nervous, can't sleep, and drinking well over my norm... what does this do to our case, our timeline? Still trying to contact atty's but to no avail - they simply don't return our calls. ANY input, opinions, recommendations would be greatly appreciated.

Thanks in advance for any help.

[StaciMM]

It sounds like you had more assets than you exemptions, and if that is correct, you can probably work out a payment w/ the trustee.

Was that amount in your checking account when you filed? If so, you are probably not going to be able to get around. Even though it was was for household bills, any amount at the time of filing was part of the estate.

Changing the homestead/wild card really won't change anything in the end. The bottom line will be the same, unless there are other exemptions that you can apply or the value of items is different. Have you looked at home sale amounts in your area? Do you think that the tax assessment is a fair value?

[NC7ProSe]

I'm so glad you replied. I've read lots of your posts and value your opinion!

That was the amount in our checking on the day of filing. First and second mortgages both due next day.
When I added the 5000.00 to the homestead exemption (from the college fund exemption), I "ate up" my wildcard of 3500.00 - I HOPE this time I did it correctly... I believe the assessment is pretty much on target. Home sales have been around 150,000 - 155,000, but the last one went HUD and sold for 106,000. The assessment was done in 2003 so hopefully in line.
Would this be his only objection or will there be more to come? I can barely think straight these days....

Thanks so much for replying.

[StaciMM]

From what I saw of NC's exemptions, each spouse is allowed $10,000 homestead. The only time you can use a $3500 wild card is if one of you does not use the homestead. If one of you only uses $10,000 homestead exemption so that the other can use $3500 wild card on something else, looks like you can save $200. (Owe $3300 for the nonexempt equity in your house, rather than $3500 on what you use the wild card for.)

How much is your boat/trailer worth? Perhaps you can turn that over, and make payments on the other amount?

[NC7ProSe]

The house equity never came up because of the 10% cost to liquidate and we are reaffirming with lien holder (guess I should've mentioned that, sorry). I am using my 10,000 for the house and my husband is using the wildcard to exempt personal property - hopefully leaving only 1462.00 to pay Trustee if we can't use 1-362 "support of family". But, I'm only hoping that I am correct this time, will be 3rd amendment of Sched. C... probably not a good thing.
In your opinion, is this the Trustee's only objections? Would he have done them all at once or will he bring up more?

The boat and trailer are not worth much, just to us. Total value both 1650.00

[StaciMM]

He may have further objections once he reviews your amended paperwork-its hard to predict.

The house equity never came up because you exempted it-you have $13,300 in equity and $20,000 in homestead exemption. Now, you've changed your exemptions leaving part of it unprotected. The trustee could ask you to pay the difference.

My guess-and its only a guess-is that w/ moving the exemption he is going to call the house into issue. He could choose to be difficult, and have someone come by to appraise the house. Since you are using a 2003 figure, and houses are going for a little more now, that might not work to your advantage. The cost of selling works to your advantage, but the trustee has an an upper hand that he knows you want to keep the house... Its kind of like a poker game-its not JUST who has the better cards, but who is better at playing the game and who has the most to lose.

[NC7ProSe]

Very good points...and I am sure he is MUCH better at this game (bad poker face here and lots to lose). So my feelings of absolute insecurity aren't unfounded; just play the waiting game at this point? Did I mess up by changing exemptions and banking on the liquidation costs? Geez, I just wish this was over...

[StaciMM]

I'd say that changing exemptions, at worst, will save you $200. (Trading a $3300 exemption for $3500.) If he does get a new assessment of your home, and its higher, you can change them back as you have up to $20,000 total. Of course, he'll know you CAN do that, and perhaps that will deter him from getting a new valuation? What condition is your home in? How is the roof, heater, etc. If there is work needed, that plays to your advantage also. (Though amending to lower the value of the house would not be a good idea unless you could back it up w/ paperwork. Its still good to keep in mind in case he DOES challenge the value.)

Most likely, in the end you will end up w/ a monthly payment arrangement to the trustee, rather than turning over assets. Something to keep in mind, though, would it be better/worse to turn over the trailer, boat and pay less? I don't think the trustee will allow things to go too long-perhaps need to be paid in 12-18 months or less.

[bkfiler]

i want to point out to others reading this post that this is the reason i myself alwasy suggest getting an attorney no matter what. plan your bankruptcy. you will need to save money ahead of time if you cant afford it at he time your need it.

most things go fine but you are dealing with a federal courthouse, judge and powers that be. also, you are dealing with a lifelong situation that needs to come out to your best interest. attorneys deal with this info and the actual trustee day in and day out all day long. they know the trusttee, us trustee and judges. they know what is acceptable and what wont fly, and how they will react.

yes, lots of pro-se filers make out fine enough. but remeber that creditors, trustees and us trustees will target them because they know they are easy prey. no this doesnt mean you are dead meat. it mans if there is a problem then they are more likey to go ahead and take something from you rathere then let it go becuase they know your attorney would just correct it or fight it.

i wanted to file pro-se so badly because i do everything myself too. i decided not to and am glad i didnt for these reasons. just some things to consider from my point of view. and maybe even more valid of a point for the new laws.

[NC7ProSe]

We go to court on Thursday morning for exemption objections and reaffirmations. The Trustee did not reply to our response to objections so I have no idea of what to expect. We are still listed as No Asset and deadline for creditors was 1-15-06. Not discharged yet (most of this trustee's cases are not). Anyone have any insight as to how these hearings go? Will all of our cases come up at once or will reaff's be handled separately from objection hearings? Lots of hearing are scheduled on that date and time...
Geez, I don't even know how to dress for this!!!! Any help will be greatly appreciated.

Panicking in NC

[bkfiler]

no idea. probably at the same time.

also, dress nice. you are in front of a judge, not a trustee id imagine. if so then look decent. not ritzy. leave the diamonds and furs in the car.

[NC7ProSe]

definitely infront of judge, shaking in my not-so-ritzy shoes! Thanks for the reply.

[bkfiler]

best thing you can do is wink at him when he walks in, always smile at him and call him 'Your Majesty'.

[NC7ProSe]

Sleepless in NC

This morning 9:30 is the big day, wish me luck please! I have gone over everything a million times in my mind, hope we can get through this unscaved. One word of advise: IF POSSIBLE, GET AN ATTY! A friend of mine had one for other reasons, then filed BK7 using same atty. The correspondence between Trustee and atty were unreal... the "good 'ol boys club" is alive and well.

[bkfiler]

This morning 9:30 is the big day, wish me luck please! I have gone over everything a million times in my mind, hope we can get through this unscaved. One word of advise: IF POSSIBLE, GET AN ATTY! A friend of mine had one for other reasons, then filed BK7 using same atty. The correspondence between Trustee and atty were unreal... the "good 'ol boys club" is alive and well.

my thoughts exactly. thats why i picked an attorney that was in like flynn with the courts and everyone around her. well respected and liked and trusted.

good luck! let us know what happens!