341: Trustee wants me to talk to a Realtor

[lorelei]

So, not sure what to make of my 341 yesterday.

The trustee was a bit ornery. She seemed to come at it with an expectation that everyone was out to cheat her, judging from the anti-pep talk she gave all of us debtors before the appointments began. My attorney said she seemed to be on a "warpath" about something.

When it was my turn, she asked all the questions that seem standard. She wanted more recent bank statements (no biggie), a copy of my divorce decree from 2008 (OK) and a document that listed the legal description of the house that I plan to surrender. Then she asked what condition the house was in, and I said "good" (not sure what else to say - We're living in it, it's OK, will need a roof soonish, but whatevs) and then she asked for my phone number and said she wanted to have a Realtor call me.

OK, I can handle that. I can't lie, the other thread in this section has me a bit worried, but que sera sera. If she wants to futz around with trying to sell a house I owe $120,000 on that is Zillow-rated at $83,000 in a town where there is an average 1.5-year time span between a house's listing and its sale - more power to her.

Or maybe she just wants to make sure everything is on the up and up?

I dunno.

What do you think is going on?

[lorelei]

I just checked Pacer and this was added to the docket:

Trustee's Report of First Meeting of Creditors. Please note that if the first meeting of creditors has been adjourned to allow the debtor additional time to submit documentation to the trustee and the requested documents are received prior to the adjourned date, the debtor is not required to attend. Adjourned First Meeting to be held . on 6/18/2012 at 02:30 PM at Office of U.S.Trustee (The Ledyard Building). (Trustee's name) (Entered: 05/22/2012)

I was expecting that, as she said she wanted more documentation. And like I said, the things she needs are easy enough to round up.

Still having kittens over this Realtor thing, though. But that's what I'm good at.

[ValleYum]

Get the stuff together and sent. And the thing with the Realtor? As my mom tells me at times, it is what it is. I hope things go well for you. {{{hugs}}}

[despritfreya]

Keep us posted. As you said you read the other thread(s). Might I suggest a talk with your attny with a copy of all the posts from those threads? Unless you do not care about this Trustee trying to scam a short sale, maybe a Motion to Abandon is needed, even though you are surrendering. Just a thought. Not sure if I would do the Motion for my client but. . .

Des.

[lorelei]

Thanks, you guys.

I'm not sure what to think. Between you, me and the Internet, I really don't give a rip what happens to this house anymore and I'm actually looking forward to being free of it. That said, I'm not quite prepared to have to find an apartment in a month or two - I was counting on the six-month redemption period. If I had to move sooner it would be a hardship but not impossible.

What does it really mean to go through a carve-out process like this? I gather it delays the time to the case closing, but in everyday terms, what does that mean to me?

[tobee43]

looking back and we all learn from "mistakes".

we also surrendered our home in our bk. if i just thought through it a bit more, i would have had my atty file a motion pertaining to that surrender asking the trustee to have the bank issue a DIL. if the motion had been granted the deed would have changed hands and it would have been end of story whether the bank wanted to eventually short sale, light it on fire, or keep it underwater. (in our case that is a literal statement).

des points out, that this could be the trustee attempting the road to a short sale. i would approach your atty and see if it's not to late to file a motion with respect to the bank issuing the DIL. what do you have to lose if the motion is denied. i certainly would be curious as to the basis of the denial.

good luck! i'm certain it will all work out just fine.

[lorelei]

Now one week past the 341. I've turned in the requested paperwork, but I still won't hear anything until at least June 18, I've been told. Meanwhile, no call from a Realtor. If I don't hear anything in another week or so, should I mention this to someone?

[jst4f]

Now one week past the 341. I've turned in the requested paperwork, but I still won't hear anything until at least June 18, I've been told. Meanwhile, no call from a Realtor. If I don't hear anything in another week or so, should I mention this to someone?

I would mention to my attorney.

[lorelei]

So, my 341 is supposed to conclude today. I don't have to be there if the paperwork is sent in, and I handed it over weeks ago. Never did hear from a Realtor and I told my lawyer that. Had horrendous nightmares about the bankruptcy last night. Checked PACER this morning and found this posted as "Trustee Report #1" - posted on June 8. Can someone please tell me what this means?

[tobee43]

it may have been a realtor driving by and giving the trustee a report??? what the heck does your atty say about all this???? the firm should be in touch with the trustees office so you have no surprises really. i know in our case the trustee had a TON of questions prior to our 341, however, all those questions and documents were provided prior to our actual 341 meeting which helped it go quicker, although, there were still some questions.

if it were me, i would contact the atty on your case and tell them to find out what it happening with your case. best of luck!

[lorelei]

Hm. In combing through other people's docket reports with this trustee, it seems she does a lot of employing of Realtors. I don't like. But even when that happens, it seems debtors are discharged on a regular schedule. I'm not sure what all this means. I'll be following up with my attorney this week, I guess.

[lorelei]

The sum of all fears.

My attorney's assistant wasn't very helpful. When I sent in my debtor ed certificat yesterday, I told them about that Trustee's Form and asked them to please explain it. Her email to me was simply this: "There is nothing to do. You will get your discharge in about 3-4 months from your hearing date. That's it."

I wish!

I did some digging and found this online: Handbook for Chapter 7 Trustees from the US Department of Justice.

First paragraph: "This record must be maintained for every case that is either expected to be or declared to be an asset case by the trustee, for each case in which the trustee has received funds of the estate, and for each case in which a no-asset report has not been filed and 60 days have passed since the initial examination of the debtor at the § 341(a) meeting."

Well, it hasn't been 60 days and she didn't receive any funds, so that means only one thing.

Which is stupid.

Yes, my main mortgage is at about $90,000, and the valuation (from a few years ago!) is at $102,000. But Zillow marks my house at $83,700 and there's been houses on my street for sale for YEARS.

Make it stop, please

[lorelei]

FYI, just got another note from the attorney's office. They're basically saying that no matter what happens with the house, I should still get the discharge on schedule. If she does want to sell it, not to stress out because I was going to abandon it anyway (true). I don't really feel like getting into a discussion on Cash for Keys at this point. I feel utterly powerless here. I suppose I am. I just don't like it.

[lorelei]

Yep. There it is:

Proposed order:

The Chapter 7 Trustee, (name) having filed her Motion to Hire Realtor, Notice and Opportunity of Hearing having been served on the matrix of creditors and parties in interest; no response having been received nor filed with the Court, and the Court being otherwise duly advised in the premises:

IT IS HEREBY ORDERED that the Trustee’s Motion to Hire Realtor, XXX XXXXXX to sell the property located at (Address) is granted.

[tobee43]

yes, you will be discharged, but NOT closed. the closed order will not be obtained until the trustee sells the house