341 meeting yesterday...OUCH

[deafbroke]

Had 341 meeting yesterday. Trustee was nice. when we got there we were handed a paper that said fed and state return, and stimulus checks were all property of the court. Well we spent them all. Had reciepts to show they weren't wasted on non-neccessities. Not good enough. It ALL has to be paid back. $2500. Lost a 2nd property also. Changed a couple things so we are not reaffirming our mortgage. Trustee will be sending letter telling us what we need to do.



DB

[JRScott]

Did you file with a lawyer?

It might be necessary to go back through your schedules and see if there is a wildcard exemption etc that you didn't use that could be applied to the tax returns and stimulus packages.

[gophermn]

JRScott is correct, see if you state offers a WIldcard exemption on your homestead. I was able to protect about $9k using that.
Also see if your state offers a redemption period for your mortgage. Example is like Minnesota, you can literally live in your home for almost a year before having to move. We have a 6 month redemption.

If you do have a redemption period, that could be one way to get back your $$$$ you lost to the Trustee.?.?

[southernbelle]

That's horrible. I don't understand why you have to pay the refunds and stimulus back. I had receipts and my Trustee didn't say anything (at least not yet) and I think the only reason why she asked for receipts from me was because I received my Fed. refund about 2 weeks before I actually filed. I paid the lawyer most of it and used the rest to pay bills.

She seemed like she had a magic cut off date for asking for receipts with respect to the timing of the refund. Some received refunds a month or 2 before filing and she didn't ask them for anything. Paying it back really stinks. I'm sorry.

[cirnrab]

I really think it's crappy that they are going to take the Stimulus checks anyway, it's supposed to be used to "Stimulate" the economy not to pay creditors, I feel like the trustees get enough of your stuff anyway. One thing I did, to keep my tax refund (they didn't take my stimulus) I filed a homestead deed on my state and federal return. A homestead deed is letting you exempt that amount to where they can't take it. You could at least try it? I'm sorry you have to turn everything over

[cirnrab]

I filed a homestead deed so I could keep both my tax refunds(state and federal) that exempts them from taking that money, and they never told me anything about my stimulus.(Which I haven't yet received) Maybe you can do that?

[AngelinaCat]

What is a wildcard exemption and does Florida have it?

[iloveoliver]

AngelinaCat

Here is link to FL exemptions. It won't tell you everything but it's start. You'll need to do more research or talk to a lawyer

http://www.floridabankruptcylaws.com/exemptions.html.

[lrprn]

Did you file with a lawyer?

Deafbroke filed using Bridgeport (a form prep company).

Deafbroke, I am so sorry that you were assigned a trustee that has chosen to take everything he/she could take from you. This is one of those unfair differences between different courts and different trustees that can happen. The bk law is national, but its interpretations definitely have local 'flavors'. That's what happened here

In this case, if you had filed with a lawyer, he/she could have advised you ahead of time about how your local court and trustees were handling tax refunds and the stimulus payment. I'm just so sorry to hear that you will have to pay back the $2500 before you can be discharged. Hang in there - I so wish this could have turned out differently for you .

[Stilltheone]

I am so sorry to hear that! My lawyer made sure to add our stimulus with our exemptions so we'll get to keep it.

Do they expect payment all at once or can you do a payment plan?

[deafbroke]

Did you file with a lawyer?

It might be necessary to go back through your schedules and see if there is a wildcard exemption etc that you didn't use that could be applied to the tax returns and stimulus packages.

Minnesota has no wild card exemption.

it says none on the exemption listings.

DB

[Cali]

I am sorry to hear this as well. Keep your chin up, things will get better.

[AngelinaCat]

iLoveOliver: Thank you so much. God, I wish I saw this place before I hired my lawyer.

[Keebler]

Had 341 meeting yesterday. Trustee was nice. when we got there we were handed a paper that said fed and state return, and stimulus checks were all property of the court. Well we spent them all. Had reciepts to show they weren't wasted on non-neccessities. Not good enough. It ALL has to be paid back. $2500. Lost a 2nd property also. Changed a couple things so we are not reaffirming our mortgage. Trustee will be sending letter telling us what we need to do.



DB

This seem outrageous but then I noticed the date you filed. It appears that the Stimulus Rebate was paid after you filed and therefore I can see how it is part of your Bankruptcy estate and subject to being ceased. When did you get your Income Tax Refund? Was that also after you filed?

[deafbroke]

This seem outrageous but then I noticed the date you filed. It appears that the Stimulus Rebate was paid after you filed and therefore I can see how it is part of your Bankruptcy estate and subject to being ceased. When did you get your Income Tax Refund? Was that also after you filed?

Within a week. But we decided to let the house go and move closer to where I work. I drove an hour each way prior to move and gas was costing near $400 a month just to work and back. We got behind on mortgage and decided to move withing 15 minutes of my job. I told trustee twice I had reciepts with me at the 341 to show we spent the money on things that were needed but he shook his head no. What sucks is even after move we are barley getting by and I don't see how we can afford to find the money to pay the $2500 back. Looks like unless the trustee backs off we will get dismissed and have to go through the same crap with creditors again and refile in 6 months. Pisses me off big time.

DB