341 Meeting of Creditors - Trustee's Office wants an Accounting of my Inheritance

[womanonfire]

So my 341 meeting was yesterday and they asked me the usual stuff about transfers. I signed a quitclaim deed to transfer my ownership of my late father's home to my brother so that he could get a loan and give me my portion of the estate. This was in Feb. 2021 and the Trustee's attorney wants to see an accounting of where I spent the $43,000.

When he asked us for that, my eyes could not have rolled any further back into my head. Good thing it was over the phone because my facial expressions would have told the story. Anyway, if I spent it on sex, drugs and rock and roll, isn't that my prerogative? It was over 180 days.

So would an a good, aggressive attorney object? I already told mine that I would get it for him but he hasn't asked yet. We also have to file amended schedules.

[justbroke]

They just want to know where the money went. You could have purchased bitcoin to try to hide the money. Whenever there are large amounts of money involved, most Chapter 7 Trustees will dig to make sure that the money wasn't just hidden.

You reference the 180 days, but that's a technicality which brings inheritances into the estate. This is a simple question of "where did $43,000 go."

[flashoflight]

Nothing you said so far concerns me as far as the amended schedules or what happened to the $43k. As long as you spent it down to the extent that it exceeds exemptions, just provide documentation and move on.

[despritfreya]

Anyway, if I spent it on sex, drugs and rock and roll, isn't that my prerogative? It was over 180 days.So would an a good, aggressive attorney object? I already told mine that I would get it for him but he hasn't asked yet. We also have to file amended schedules.

1. What you spent it on is absolutely your "prerogative". However, your financial dealings are an open book when you filed bk. If you spent the money on "sex, drugs and rock and roll" and doing so was deemed a flagrant waste of a valuable asset that could have paid your creditors, you could face a Motion to Dismiss based upon bad faith. I'm following a case right now where frivolous spending of a lot of money is exactly what happened.

2. Not sure why you mention 180 days. A Trustee can look back 4 years and sometimes, even further.

3. An aggressive attorney would make darn sure the client fully cooperated with the Trustee, or the US Trustee, not file an objection to a proper inquiry as to the client's financial dealings. Don't wait for your attorney to ask. Get him a full and complete accounting of how you spent the money.

4. Get the amended schedules filed pronto.

Des.