"Claw-Back" Period After Filing C7?

[JCSanDiego]

Hi all

I finally pulled the trigger and filed my chapter 7. I was wondering if anyone knows (I'm in CA) if there is a period a time, after the filing, where any money could be "clawed back" into the bankruptcy, by the trustee (assuming I would report it) or if I'm free and clear the moment my C7 is electronically filed and any and all cash or awards are mine to keep and seperate? My attorney did tell me there was a provision for an estate/trust/will, that exists for 180 days after filing (or perhaps dismissal date?) but this is something different. Bottom line I may be receiving a refund for something - or I may not, in the next couple weeks. For privacy purpose I won't say what it is, but it's something common, and the value may not even affect the bk. Anyway, lets just use an example of a lotto ticket. If I won $25K in cash two weeks from now, and that number was more than I could exempt... is it mine? Or would that need to be reported because of a window of time, such as with an inheritance?

Sorry for the long-winded note... just curious

Thanks!

- JC

[despritfreya]

You are required to disclose all assets that stem from a pre petition matter. If you purchased that lotto ticket the day before you filed, and it becomes a winner a week later, those winnings belong to the bk estate.

Whatever "refund" you think you are going to get, if it stems from something that happened before you filed, you need to talk to your attny. You don't want to risk losing your right to a discharge over this.

Des.

[justbroke]

I would have said the same thing as Des. It comes down to when the event occurred which entitled you to receive a refund, the date you purchased said lottery ticket, or when you became entitled to property by bequest, devise, or inheritance. Regarding refunds, this is exactly how the (Chapter 7) Trustee is able to take tax refunds. A refund is nothing more than someone else holding your money and is treated no differently than if it were deposited into a bank.

[JCSanDiego]

Thank you both for taking the time to reply...

Ok, to clarify the "refund"... I'd purchased time at a timeshare a year ago, and due to an unfortunate family circumstance I will have to cancel. The property does not want to refund my money, but rather, offer me credit for a future stay. I'm assuming, this is not "money in hand", and therefore I do not have to report this on my paperwork because it's unlikely to receive a refund, and the "credit", is of no value to any debtors - true? And I cannot count on even using it in the future, so it may be in all likelihood, a loss. I was just wondering though, IF, in the event they did decide to refund me in cash, and given, it would be a month or so from now to receive it, in this case would I be entitled to keeping it? Or is there a period of time, such as the 180 days as with an inheritance, where I would need to contact the trustee and inform him? The other factor... this isn't much money and would have fallen well within my exemptions. I didn't list it because I'm not counting on it, and there's no "value" for the credit.

Thoughts?

Thank you!

[justbroke]

Well, you'd list the timeshare in your Schedules as either a real property interest or as an executory contract. I can't tell you under which one it belongs, but there's a distinction. I don't think the credit is a real thing, but if they did refund in cash you could be able to exempt it under California System 1 or System 2. I can't tell you which exemption scheme (system) is better for you.

The 180 days doesn't matter for a refund as it's not an inheritance, property from a divorce, or a death benefit. The key is whether you were entitled to this refund, form a timeshare, at the time that you filed. If the refund can be reduced to some money value, then it may be contingent or un-liquidated if you have to do something to get the money. Again, you may be able to exempt this credit, but I don't know.

I would say that if this timeshare is like Interval, RCI, or clubs like Disney Vacation Club, then I don't think this stay credit has a monetary value. Its just the points. I have come to the understanding that the super-majority of Chapter 7 trustees would run, not walk, from any timeshare. I'm thinking this is just points or a specific week and that it doesn't really have any dollar value. I don't think any trustee wants to play with a timeshare. (Now, the Disney Vacation Club is an exception as it has exceptional resale and residual value.)