home equity/jewery

[hopefulrelief]

Hi!
I have learned so much here! I have a few questions...kinda long so I apologize in advance!

We had our 341 meeting last Friday (yes, the 13th). The trustee has come back asking for a few things and I wanted your opinions!

Ours was an asset case...a tax refund of 11k! We had 5 rental properties all are being surrendered in the BK...no equity there but our losses on these properties resulted in the large refund. We could exempt about 3K of this so the trustee gets 8XXX grand.

1.) He asked about my wedding ring, we purchased for 5k 11 yrs ago. He wants one or two quotes from jewelers (not pawn shops). We have an exemption of $1500 for jewelry. I know it appraised at 7k for insurance purposes...does anyone have a feeling if he can make me sell it? We have such little $ to start over with, I can't buy back the equity in it but would be sick (not that he cares) if I had to sell it.

2.) Second and most important...how much equity would need to be present in your home for the trustee to come after.

We owe 233,000 (1st and 2nd). A house down the street (EXACT same house as ours except we have a walk out basement and large patio/deck, theirs was below ground basement and just small slab patio)...sold for 255,000 this past September after sitting on the market for about 7 months. We told the trustee we thought we could sell for $265,000. He looked up on villow.com which said our house could sell for $285,000. Few issues...villow goes off of tax assessment, we found out today ours is wrong. It lists our house as having 357 more sq feet than we do. Villow said the house down the street could sell for 271,000 (it sold for 255,00). We live in a "detached villa" we do not own our land and it is maintained by the association...nothing is selling around us possible due to this. I have heard this Villow also assesses on surrounding homes...we have some in our subdivision going for $425K...our subdivision is huge and these whoppers are not by us! My friend, the realtor, said she would not accept our listing for 270...too high. If she came in my home she would tell us to sell for 260, 265 tops.

If we could list at 265, owe 233 that leaves 32k in equity...we have a $15,000 homestead exemption and realtor fees would be around 15k (according to a friend who is a realtor and our BK lawyer) leaving 2k in equity.

Would a trustee come after our house for that? I have read that they take into consideration length of time to sell...nothing is selling in our neighborhood...some have been pulled off MSL and not put back on. I also am assuming an amount would have to be put into repairs (not too many only 4 yrs old) and insurance, keeping mtg payments while waiting to sell, $125 association bill each month. Am I worrying for no reason? I have learned so much though all of this and made a ton of mistakes. My only true concern was to ensure my home would still be our home...for my children.

Any opinion would be great. The trustee is sending his realtor to do a walk through, no date yet. I guess I will visit some jewelry stores tomorrow...Dick.

Considering the amount of debt in real estate we may be leaving I guess I should feel blessed in some way...just didn't expect our house to be challenged and it is so scary.

Thanks again, there are so many helpful people here!
Hopeful!

[lrprn]

Sorry to hear about your unexpected trustee and house issues, hopeful.

Under these circumstances you should consider getting a certified home appraisal done. I'm a little surprised the trustee is putting so much faith in Zillow rather than on what comparable houses in the neighborhood are actually selling for - must be why he/she is having their realtor go through your house. Be sure to point out all its flaws while they're there. And don't clean before they come either!

I'm sad to say that there are other members here who sold their wedding rings trying to stay out of bankruptcy. We all say that bankruptcy is a cold, emotionless business decision, but the reality sometimes is that it breaks your heart. If your trustee wants to know what your ring is worth, take it to a local jeweler and ask what he/she would give you for it in cash right now. Ask for that cash estimate in writing. DO NOT get an estimate for insurance value - that's a replacement price and will be much higher.

Wish I had more to offer. Keep us posted on what happens, ok? Vent whenever you need to - we're here to help you when we can.

[CATCHMEIFYOUCAN]

i would of hung onto the ring and say i lost it .. then maybe make some $$$ later down the year(s)

best of luck, CMIYC

[lrprn]

i would of hung onto the ring and say i lost it .. then maybe make some $$$ later down the year(s)

CMIYC, you are suggesting that hopeful commit bankruptcy fraud. Please think before posting advice like this - we don't support defrauding the bk system here.

[anonymuse]

Zillow is way off for my area. For my county, I can go online and get tax and home sales records. I'm pretty sure you should be able to go to the county clerk and obtain the same information.

What is key is what your house could actually sell for--not the asking price. Sales history in the area is key.

It wouldn't hurt to have a realtor of your own come in to come up with a price for a quick sale.