Estate home & 341 meeting?

[Patton1318]

Hello All

I filed chapter 7 on July 5th and my 341 meeting is scheduled this Wednesday August 10th. It's a no asset case & I have a really good attorney but I'm really stressing out about the 341 meeting.
Over a couple of years ago my father passed away in Florida as my siblings and I had not heard or spoken to him in 35 years, He was pretty destitute and the entire estate was only worth around $7500.00 & that included his car. He did have a home that at the time was valued at $65,000 but owed $62,000 on it. after consulting with several real estate professionals & our probate lawyer in Florida we decided to let the house go back to the lender. Bank of America was sent a letter stating we had no intent on keeping the house & they were informed by phone also.
There was never any Will leaving us the house and my names not on any of the loan documents but I'm getting letters from a attorney wanting a relief from the automatic stay as the foreclosure is apparently not complete. I never listed the house in my schedules as I did not think I owned the house and thought it was already gone?
My question is does this make me look bad to the trustee that i didn't list the house as a asset? Did I commit fraud? My attorney says not to worry about it but I'm a nervous wreck.

[justbroke]

If there was no will, then it likely went to Probate. If it went to probate, then you are actually a "party in interest" and certainly could lay some claim to the property because it's probably still held by your late father's estate. The lender did the right thing by filing for relief because, as of the day you filed, the property was protected (to the extent of your interest) by the automatic stay imposed by the bankruptcy. These are all standard things that happen when there is any property and the entity seeking to assert any rights (such as foreclosure) needs to proceed cautiously with a bankruptcy in play.

If the property was never foreclosed upon, then the correct thing to do would be to list in in your bankruptcy since you still have a legal interest in the property. As your attorney wrote, there's nothing to "worry" about and if the Trustee asks about the property just tell the truth.

There is nothing to be nervous or anxious about. You did not try to conceal property. The property seems to be worthless anyhow. Whether the Trustee would want to dabble in the area of frustrating the creditor by fighting the relief from stay, is the Trustee's business and prerogative.

It does not make you look bad. You had no idea it was never foreclosed and transferred out from your late parent's estate. Trust your attorney.

[LadyInTheRed]

If your attorney says not to worry, don't worry. It doesn't sound like there is enough value in your interest in your father's estate to make it worth hiding. It may take a little explaining and you may have to provide some documents to the trustee, but it doesn't sound like it will be hard to convince the trustee that omitting the asset from the bankruptcy petition was an honest mistake. Let your attorney take care of this. If you are asked questions about it at the 341, be honest and don't provide more information than needed to answer the questions you are asked. I don't say that because I think you have something to hide, only because it is always a good policy in legal situations to not say more than you have to.

[LadyInTheRed]

What justbroke said!

I didn't see the post before finishing mine.

[Patton1318]

Thank you so much justbroke & Ladyinthered. I guess I'm just stressing way too much.

[Patton1318]

Hello, I just got back from the 341 meeting and yes I was supposed to list the house on my schedule as you both said. My trustee was very nice Though she did slightly chastise my lawyer a little about the house.
After a little explaining from my lawyer she seemed happy.
Thanks again!