Trustee Request for Asset Notice

[CATCHMEIFYOUCAN]

Hey ladies and gentlemen:

My last day of objection from creditors WAS Jan 8th; however I just checked PACER (Jan 12th) and the Trustee has filed a Request for Asset Notice! This is exactly what it says:

Trustee Request for Asset Notice The Clerk will please send a notice to all creditors and parties in interest stating that there maybe be assets available for distribution and requiring that Proof of Claims be filed in this case. If I have filed a Report of No Distribution, please withdraw it.

the only "assets," that were listed that I can think is $13,000 I have in a 401kplan (which should be exempt - but still listed as an asset?) and the new car I bought just before filing (just a Hyundai - which the Trustee didn't blink an eye). The total assets that I had listed on the schedules was worth about 25,000 (I own nothing extravagant just your regular one room studio apt), the 401k plus my car even exceeds the simple things I own)

Presumption of abuse did not arise in my case after the Means Test etc.



Has anybody had this happen in their case? I converted to Chapter 7/No Asset case?



The only other thing I can think of is I received money back from the original Trustee in the Chapter 13 case before I converted. I had paid about $750 into the plan before I converted.



Thanks for INSIGHT to this!

Catchmeifyoucan

[aa06a47]

I know the 401k is exempt, but the other assets besides that, where you able to exempt them in the schedules? The trustee may be wanting some money from you to close the difference between what is allowed exemption and what you claimed.

[cherir]

Yes, this happened to us. We were firmly a no asset chapter 7 and the 341 seemed to go well. In our case, we had moved within 2 years of filing, and the trustee made mention of that and indicated our lawyer needed to change our exemptions to the previous state. Long story short, a few days later, Pacer showed the same thing as yours - creditors were notified that we were possibly an asset case. She also instructed the creditors to send in a proof of claims, and gave them 3 months to do so. Should she truly find money, the proof of claims will be how she distributes it. (Interestingly, the majority of the large creditors have not yet filed a proof of claims.)

The trustee decided to go after our homestead exemption, giving us NO homestead exemption. Long, long story. Lawyer objected with a strong argument (Our previous state doesn't allow us to claim a homestead if we don't live there, and the new laws state we cannot use our new state since we have not lived her long enough. That should then default and allow us to file under Federal, which my attorney did originally. The minute we "refiled" per the trustee under our previous state, she came after our house.)

Trustee has now agreed that we have fallen between the cracks of the laws and our current state will be amending the statues to allow filers in our situation to file Federal. Just who knows when that will be. Therefore, we are going to court next week to allow the judge to rule in our favor and become "case law" for our state. Woo hoo. Not.

Anyway, talk about stress!! Interestingly, just a week after this surprise of between changed to an asset case from a no asset case, we received a discharge!! We thought surely that was a mistake, but NO, the trustee haggling over assets has nothing to do with whether you are entitled to a discharge or not. (Our 341 had been delayed from the original date of mid September to beginning of November. Our 60 days from the first scheduled date of the 341 was November 14th, and it didn't matter that the 341 had been rescheduled twice out of our control.)

As soon as our court date next week and this issue is resolved (in our favor), we hope the trustee closes our case soon after, but who knows. She will then send another letter out telling the creditors - never mind, they do not have any assets to distribute (but I'm sure not those exact words! lol).

It is hard to be discharged (which is the prize, the goal of bankruptcy) and have your house particularly (but it could be any other asset) up for grabs outside of the discharge. In our case, do we have a home to live in? That's a little bit of a stressful situation and harder to ignore than if the trustee wanted our tax return or something.

Good luck with your case!

[CATCHMEIFYOUCAN]

Just got a response from my lawyer who can't think of any reason why the trustee put an asset notice, like I mentioned I converted to Chapter7 NO ASSETS. I rent a small studio apt and have your typical things, stereo, tv, vcr, computer, clothing, nothing extravagant. The only ASSET that is worth anything is my car (which I just bought) before I filed because my original car flooded and my 401kplan. Hmmm, crossing my fingers this blows over.

Thanks for your input ! Catchmeifyoucan

[FoolAndHisMoney]

I have seen cases on PACER where the clerk mistakenly added documents to the wrong case and rescinded and marked it with an error. Maybe that's the case with you. A debtor with a similar name should have gotten the notice instead. I thought that the trustee was only allowed 30 days from the 341 to claim assets unless they found the debtor was hiding something. Since you are over the 60 day mark I thought it would be overwith for you and your discharge was on the way. This must be an error. I hope it is. Good luck!

[CATCHMEIFYOUCAN]

ME TOO "FoolAndHisMoney" .. as I am having trouble logging on to PACER now, even though I checked it on Saturday, I called the 800 number and it does say "NO ASSETS!" So just twiddling my thumbs and crossing my fingers:
The Trustee does mention: "If I have filed a Report of No Distribution, please withdraw it." So I'm hoping for a withdrawal than the DISCHARGE ! It's making me NERVOUS ! ! ! Although despite my name "Catchmeifyoucan," I honestly don't have anything to hide!

Catchmeifyoucan

[FoolAndHisMoney]

ME TOO "FoolAndHisMoney" .. as I am having trouble logging on to PACER now, even though I checked it on Saturday, I called the 800 number and it does say "NO ASSETS!" So just twiddling my thumbs and crossing my fingers:
The Trustee does mention: "If I have filed a Report of No Distribution, please withdraw it." So I'm hoping for a withdrawal than the DISCHARGE ! It's making me NERVOUS ! ! ! Although despite my name "Catchmeifyoucan," I honestly don't have anything to hide!

Catchmeifyoucan

The good news is your discharge is pretty much a done deal since you passed the last day of objections. No creditors or the UST can move to extend your case or object to dischargeability of a particular debt. If this reporting is intended for you then you may have to fork over the asset the trustee claims is not exempt or make a deal with him. If possible don't fork anything over and let the judge decide.

[SinkingFast]

I have seen cases on PACER where the clerk mistakenly added documents to the wrong case and rescinded and marked it with an error. Maybe that's the case with you. A debtor with a similar name should have gotten the notice instead. I thought that the trustee was only allowed 30 days from the 341 to claim assets unless they found the debtor was hiding something. Since you are over the 60 day mark I thought it would be overwith for you and your discharge was on the way. This must be an error. I hope it is. Good luck!

Or a typo on the Case Number??!!

Did your Trustee say anything about income tax refund??

Ours did. About a month after our 341, we got some sort of document to sign that we were supposed to turn in our filed Income Taxes and the Trustee would let us know if he was interested in our Refund or not. We had to sign and return that Statement verifying that we had read and understood what would happen.

[Spartan]

Just got a response from my lawyer who can't think of any reason why the trustee put an asset notice, like I mentioned I converted to Chapter7 NO ASSETS. I rent a small studio apt and have your typical things, stereo, tv, vcr, computer, clothing, nothing extravagant. The only ASSET that is worth anything is my car (which I just bought) before I filed because my original car flooded and my 401kplan. Hmmm, crossing my fingers this blows over.

Thanks for your input ! Catchmeifyoucan

May be the USTrustee got a tip about a certain shoebox/cookie jar/under the mattress ....

Maybe the USTrustee was sitting next to you at the Casino that night...

I bet it is just a clerical typo that has been yanking your chain.

[bige1030]

Are all of your assets listed as exempt, without objections to your exemptions? If so, the 7 trustee probably received money from the 13 trustee and has to distribute it now.

[CATCHMEIFYOUCAN]

Comments

bige1030 wrote: Are all of your assets listed as exempt, without objections to your exemptions? If so, the 7 trustee probably received money from the 13 trustee and has to distribute it now.
The 13 trustee gave me back my money and of course took his cut (it was under $600 I got back give or take a few) I told my lawyer that and told him I already spent the money/but I can get the money if the Ch7 trustee wants it that bad! All my so called "Assets," should be exempt, like I mentioned, I don't own but typical things for studio apt (tv, boombox, game station, vcr, dvd, cds, clothing) NOT MUCH (my new car which I'm still owe about $18,000 on and the 401kplan which is at $13,000)

Spartan wrote: Maybe the USTrustee was sitting next to you at the Casino that night
LOL, I HAD THAT COMING - YOU are too funny!

SinkingFast wrote: Did your Trustee say anything about income tax refund??
The Ch7 Trustee (he wasn't the original one he had a replacement at the 341 meeting that day - I guess thats why I thought it was pretty smooth!) but did not mention about giving up tax refund (he even handed me back the copies of my previous years taxes and my paystubs!) but I know I am not a due a refund as I'll owe BOO-COO bucks in Federal for defaulting on a 401k plan I had on the job I dropped and State Taxes I might owe a couple of hundred.

IM HOPING IT IS A BIG MISUNDERSTANDING, I have a realy good lawyer who works hard for his clients and puts up a fight! Will keep you all posted, hopefully you'll see SOONER than LATER: DISCHARGED!

Thanks all, Catchmeifyoucan

[spongenotbob]

the only "assets," that were listed that I can think is $13,000 I have in a 401kplan (which should be exempt - but still listed as an asset?) and the new car I bought just before filing (just a Hyundai - which the Trustee didn't blink an eye). The total assets that I had listed on the schedules was worth about 25,000 (I own nothing extravagant just your regular one room studio apt), the 401k plus my car even exceeds the simple things I own)

Check very carefully for an unperfected lien on your new car... if the dealer / lienholder waited too long to perfect the lien (i.e. file it with the DMV), and you bought the car w/in 90 days before filing, the trustee can avoid the lien and take the car.

Of course then you can discharge the loan on the car, so it's not the end of the world.

Best of luck - let us know what happens!
snb

[CATCHMEIFYOUCAN]

Check very carefully for an unperfected lien on your new car... if the dealer / lienholder waited too long to perfect the lien (i.e. file it with the DMV), and you bought the car w/in 90 days before filing, the trustee can avoid the lien and take the car.

Of course then you can discharge the loan on the car, so it's not the end of the world.

Hmmm, I thought they couldn't take your car, as that is my only means of transportation and it does state I'm paying on it outside the BK, and I'm current on my payments, hmmm .. now I'm even more worried. Going to check Pacer in case events may have changed from the day!

Thanks, Catchmeifyoucan