Trustee Objection arrived today

[FayInFlorida]

My husband and I filed CH7 jointly with the majority of debt being business related. We received a letter of objection today dated Oct. 23 (our 341 meeting was Sept 24). The objection states the following:
"The Trustee objects to the debtors' values as too low."

The business equipment is all old and constantly needing repair. It's also listed as collateral in an SBA loan. The business also has an IRS lien for back payroll taxes.

Our personal property is just furniture and clothing, no expensive jewelry, no boats motorcycles, guns etc. We own two vehicles with clear titles and reaffirmed a loan with Ford Motor Credit for the car I'm driving. My husband's truck is titled to the business (2006 Nissan Titan with 190,000miles). One personal vehicle has over 200,000 miles (2008 Kia Sorento) my kid drives it away at college, I valued it through Edmunds. The other is an F-150 (1996) that does not run, also valued through Edmunds.

I'm so frustrated!! We've lost our home, come very close to losing our business and now the few items we possess are being scrutinized as under valued. We have an attorney but his office was closed by the time we checked the mail today. This has dragged on for over a year, it's been stressful and things haven't gotten any better. Now I don't know what comes next.

Edited to add we filed in Middle District of Florida.

[justbroke]

I would have hoped that your experience attorney, who is admitted to practice for the Middle District of Florida, would know that the (Chapter 7) Trustees use Black Book values and they use Dealer "clean". You have to remember that Florida has very inadequate exemptions except for the unlimited homestead exemption. You really only have $1K for a car (or $2k if you are married and filing jointly). If you don't claim a home, you then only have $4K + the $1K wildcard; again, if married filing jointly, double that).

Some Trustees in the Middle District are notorious for this. You'll either fight them by getting a hearing and forcing the Trustee to prove the values, or you'll settle with the Trustee.

If the Trustee's objection is just that single phrase, I have seen attorneys win because the Trustee is not specific in the objection! You can't just say "the values are too low". You need more than that.

I also notice the Trustee waited until the last day to file an objection to claim of exemptions. If that is all the basic text of the objection, it is severely lacking. With no specificity, you don't know if they're complaining about the business equipment (which if properly scheduled is secured property) or your personal exempted property. In fact, as a layperson I would have filed an opposition to the Trustee's objection because it -- if it's really just "the values are too low" -- doesn't plead sufficient facts to overcome the exemption.

But that's me... relax and wait for your attorney. It should make the attorney laugh if it's really that one sentence as the objection.

[FayInFlorida]

I'm quoting from the objection letter:

1. The debtors filed a voluntary petition for relief on 8/21/15.
2. The trustee objects to the debtors' values as too low.

And it's true that it was done on the 29th day. Mental torture and games. My attorney never mentioned Black Book values, he looked at the Edmunds print outs and said they fit within the exemptions we have because we walked away from our house.

Thanks for your reply, I appreciate it.

[justbroke]

I would wait to see what your attorney is going to do. That objection seems like it was just an attempt to assert the objection just as a "placeholder". There are some Trustees in the Middle that object to just about everything. Your attorney will know how to handle this absolutely "thin" objection.

As for value, I used Edmunds as well and I have not received any objection from the Trustee... only the actual lender(s). In any event the Trustee needs to object to more than just "the values are too low".

Hang in there!

[FayInFlorida]

Thanks for the supportive words

Waiting for my attorney to call back. When I spoke to his receptionist this morning she said "it's common". Getting that letter yesterday really hurt.

[FayInFlorida]

Still waiting on that call from my attorney. What will this do to the timeline of discharge? I haven't signed up for PACER, I worry about this stuff so much I figured that would be a bad idea. Should I do that?

[frogger]

JB gave you excellent advice. One point that always needs to be remembered however, is that bankruptcy is process, not an event. Don't get discouraged by the little things that come up. They come up, they get dealt with, and everyone moves on. Patience grasshopper.

[FayInFlorida]

I understand. Patience has never been a virtue of mine. I do greatly appreciate the advice I've been given here.