341 very scared!!

[mknolan]

My attorney will be filing tomorrow, he would have filed last week but he didn't like the "trustee" that would have been assigned my case. Once this is filed, I have the 341 to think about and I'm very nervous!! My Bk is pretty routine with a couple of exeptions, one being that my home is in a "revokable living trust" of which I am the trustee. My attorney was sn't well versed on the subject of trusts which made me a bit nervous but I dug up the paperwork to provide if the need be. The second issue is I "volunteered" at my friends business for about 5 years, I was never paid a salary but they made me a shareholder. The business has since closed, went out of business. The 2 years I was a shareholder [2010 & 2011], I was given an IRS K1 to file with my taxes wich pretty much offset my tax liability. Since I had made a substancial withdrawal from my IRA this K1 really helped!! I'm worried that the trustee is going to ask me what I did with this IRA $$. In truth, I used it to put new HVAC in my home and to pay down some debt, living expenses, etc...nothing really to hide. Am I worrying too much?? I have an excellent attorney...when I signed all of my Bk paperwork we actually did "role play" - him acting as the trustee...he was a bit harsh, is it harsh?? By the way, filing Chapter 7 in Western NC District.

[Floridagail]

It will be fine, you will be telling us the next day, you worried for nothing. The trustee has more cases then your to look over and lots of people waiting in line so she will not have much time. Try to relax , If you attorney thought there was a problem he would not file.

My trustee only took about 2mins with each person. I had to laugh , some of the attorneys were making small talk with her b4 it got started, I was in front row, hoping to be first, She called my name and asked if my attorney was here yet, I said no, but I do not need her, can I go now. She said No, we will gave the attorney more time. So I got to hear a few cases b4 mine. Really quite fast.

My attorney did not show, a stand in attorney came, never said a word to trustee , she asked me a few questions then said thank you and we were out the door.

[Charlie777]

+1

You should be fine, be honest but answer only the questions the Trustee asks.

Mine lasted less than 5 minutes, might have been 2 but it did seem to last forever. I was able to see a lot of others before mine, there were only two the Trustee drilled in on, each seemed to be mortgage fraud, neither lawyer nor client could begin to explain simple questions about where money came from.

[pamkev]

+2
Be honest and you will have nothing to worry about. I was scared like you and all for nothing. It will be over and you will wonder why you got yourself in such a worried state. I know we did. Your on your way to a fresh start.

Pam

[Sammie]

We live in E. NC and we had our 341 Meeting last 9/12/12 & I was a wreck also, & to add to our anxiety our 8 yr. old dog passed away unexpectedly from a blood infection the night before. We had our 2 hr Financial Class before the Meeting as well. The Trustee asked only routine questions and we were done in about 3 mins. and Confirmed Oct. 23rd. As everyone on this forum will attest, tell the truth & don't volunteer information & you will be fine. Keep us posted & the best of luck to you. sammie

[LadyInTheRed]

Yes, you are worrying to much.

As for the revocable living trust, your attorney really should educate himself about this common estate planning device. Is this a trust you created for estate planning purposes? If so, it is a non issue as long as you weren't under the impression that it would protect your assets from creditors and the assets of the trust are treated in the bankruptcy as if they are your assets. If this is a trust created by somebody else, like your parents, and you became the trustee and beneficiary after their death, it probably is no longer revocable despite what the name of the trust may be. How it is treated in BK will depend on the terms of the trust and your state law.

The trustee may ask you about the closed business and your IRA withdrawal. Just be honest. If you haven't done anything wrong and aren't hiding anything, there is nothing to worry about.

[mknolan]

Thank you, LadyInTheRed, yes, it was a trust created for estate planning. I was not under the impression the trust would protect my assets...as a matter of fact I kind of forgot about it until we were reviewing the Bk documents, that's when my lawyer asked me about it since my house is in the name of the trust. I have never been in arrears on my mortgage and plan to reaffirm so really glad to hear that the trust is a non issue!!
The funny thing about the closed business is I was never privy to anything to do with the financials. Thankfully these are my friends and was able to obtain the tax forms my lawyer needed to complete the Bk docs with regard to me being a shareholder. Oh yes, I plan to be totally honest, I haven't done anything wrong.

[runner4life]

I have had 341 meetings last less than 60 seconds. Ok, your unemployed, ok you are all set. Good luck!