Post 341 Hearing Questions

[kmayesaz]

I have a couple of questions pertaining to our 341 hearing.

1. Am I to assume that we will not have to turn over $1200.00 equity in my wife's whole life insurance policy and our 2007 Honda since the Trustee did not mention them in the hearing? Or will the Trustee notify us later of what he requires in regard to these two items?

2. If I do not reaffirm the Jeep and decide to turn it in once the bankruptcy is discharged, am I then on the hook for the money owed to the Lender? Or, since I did not reaffirm, is this debt also discharged?

[jst4f]

No experience with life insurance.
The TT usually mentions what equity they are interested in at or before the 341 meeting. But it is not required. It could come in writing over the next 60 days. Check with your lawyer.
If you reaffirm any loan your obligation to pay it survives the BK. Stating your intent to reaffirm a loan and then not following through with the paper work etc, does not obligate you to pay it.

[kmayesaz]

Thank you. I have attempted to run these questions by my lawyer but he is very elusive! Like grasping at straws.

[LadyInTheRed]

Did you claim exemptions for the life insurance and Honda? If you did, then the trustee has until 30 days after the conclusion of your 341 to object to exemptions in which case you will receive notice of the objection. If you did not claim an exemption, you cannot do anything with the property unless the trustee files a notice abonding it or the case is closed. If the trustee does not wish to abandon non-exempt property, you or whoever is holding the property (e.g., the life insurance company) will receive instructions regarding turning the property over to the trustee. You may also receive an offer from the trustee to allow you to buy the non-exempt property.

If you and the lender do not sign a reaffirmation agreement that is (1) approved by your attorney and filed with the court, or (2) not approved by your attorney, filed with the court and approved by the judge, then the loan will be discharged. You can either continue to pay, in which case the lender probably will not repossess the vehicle, or stop paying at any time and let the lender repossess without having to pay a penny more. You are under no obligation to make it easy on the lender and "turn in" the vehicle. Let them come and get it unless you prefer to make arrangements to deliver it.

[kmayesaz]

Thank you LadyInTheRed. You have answered my questions with much clarity. I wish you were my attorney! The life insurance and Honda were claimed as exemptions. And on the advice of my attorney, we did not/have not reaffirmed the Jeep. (Nor do I have any plans to do so).

[lucielulu209]

I've heard different things about reaffirming cars. did your attorney tell you not to reaffirm?