Changed to asset case

[MomIcantFindmy]

The 341 was concluded. The trustee gave us a form in the 341 meeting to buy back our timeshare ($250 a month for 1 year). The attorney advised us to sign and we could change our mind after we thought about it. We decided that we did not need this anymore and it came with a $100 a month maint fee we did not want plus a bill of past fees for $700. We had our attorney write the trustee a letter telling her we did not want it because we were not ready to take on new debt. Here are some things I wonder.

We received a letter from the time share company telling us they were going to take it back due to non payment of maint fees prior to filing. So who really owns this? It is not like a normal piece of real estate. Can the trustee take it if the timeshare company has taken it back?

We were changed from a no asset case to an asset case. I think it is silly because we tried to sell this timeshare for $1500 about 10 years ago and could not give it away. So if the trustee sells it for $2K then the 10-20creditors get like 200 a piece. I wonder if they are going to line up like vultures since we were converted to asset.

Will this delay our discharge?

[JollyGG]

It will not delay your discharge. However, if you end up being an asset case it will delay your closing. But, that is really not that big a deal as discharge is the important timepoint.

As for who owns the timeshare. I don't know, I would guess the company. However, it is no longer your problem. The trustee is the one who gets to figure it all out.

[Bandit]

So who really owns this? It is not like a normal piece of real estate. Can the trustee take it if the timeshare company has taken it back?

or maybe the trustee has an interest in that location & will use the timeshare himself & finagle with that company. It is not like a normal piece of real estate at all but I know if they see something that is over 1000.00 then they can/will take it. Or he is viewing it as a debt & an asset at the same time & it will be in your best interest to not have to deal with it any more. (?)

Who really knows what lurks down dark halls, except for the shadows themselves
(my own version of the radio hall of fame)

Intertesting change from no asset to asset never-the-less.

[Critty]

We filed a no-asset case also. Now the trustee is having us turn over our stimulus check which means they will be converting us to an asset case. I am curious how much the trustee will take for his fees from the $2100. Doesn't seem like enough to spread out to $70,000 debt. I was doing some snooping on the US trustees guidelines and found this in Chapter 6 "Duties of a Trustee"

"A trustee should not administer an estate or an asset in an estate where the proceeds of liquidation will primarily benefit the trustee or the professionals, or unduly delay the resolution of the case. Chapter 7 trustees must be guided by this fundamental principle when acting as trustee. Accordingly, the trustee must consider whether sufficient funds will be generated to make a meaningful distribution to creditors before administering a case as an asset case."

[JollyGG]

We filed a no-asset case also. Now the trustee is having us turn over our stimulus check which means they will be converting us to an asset case. I am curious how much the trustee will take for his fees from the $2100. Doesn't seem like enough to spread out to $70,000 debt. I was doing some snooping on the US trustees guidelines and found this in Chapter 6 "Duties of a Trustee"

"A trustee should not administer an estate or an asset in an estate where the proceeds of liquidation will primarily benefit the trustee or the professionals, or unduly delay the resolution of the case. Chapter 7 trustees must be guided by this fundamental principle when acting as trustee. Accordingly, the trustee must consider whether sufficient funds will be generated to make a meaningful distribution to creditors before administering a case as an asset case."

My case was an asset case due to $357 of my income tax return I couldn't protect with exemptions and a $2500 preferntial payment the trustee went after.

Of the approx. $3000 my trustee collected her share came to around $1000.

795.16 = trustee compensation
270.30 = fee for attorney for trustee (the trustee hired herself for this job)
259.28 = All expenses, including trustee, notice and court costs
1,855.91 = unsecured creditors
3,180 = subtotal

[Critty]

If you don't mind me asking, how much unsecured debt did you have? Curious as to the percentage that was actually applied back to the debt. I don't want to make an argument with my trustee and have him try to make our bk difficult. We haven't hidden anything and have nothing else for him to go after. But it sounds like the process that they have to go through to administer the "rest" of the asset doesn't make "a meaningful distribution." I am still getting statements showing accruing late fees and interest which just adds to the debt that will be written off. If the trustee takes 25% (which I read is standard for assests under $5000) that leaves $1575. Which only amounts to 2.25% of our debt. So our cc of $20000 will get its share = $450.

[JollyGG]

If you don't mind me asking, how much unsecured debt did you have? Curious as to the percentage that was actually applied back to the debt.

The two largest were our student loans. So each of our student loans got several hundread dollars. So the way we look at it we actually came out ahead.

Ahead, because the preferential payment she went after was actually a balance transfer.

I went back and checked, and six of our creditors filed claims

1 Student Loan 1 I owed 36,7XX.XX They recieved 1,1XX.XX
2 Student Loan 2 I owed 17,0XX.XX They recieved 5XX.XX
3 CC1 I owed 1,8XX.XX They recieved 5X.XX
4 CC2 (CC the balance transfer was from) I owed 2,3XX.XX They recieved 7X.XX
5 CC3 I owed 1,1XX.XX They recieved 3X.XX
6 CC4 (CC the balance transfer was to and who the trustee took the preferential payment from) I owed 1,8XX.XX They recieved 5X.XX

So basically, each creditor who filed a claim got 3%. There were several creditors who did not file a claim, including two large personal loans. Had they all filed it would have been less than 1%

[MomIcantFindmy]

i am seriously thinking our trustee MIGHT get $1500 for the condo. We have had it for 20 years and it is on a 40 year lease. We over payed $5800 for it and could not sell it for $1500 10 years ago. I mean...seriously....how much can the trustee possibly expect to get....plus....I think the condo company owns it....wouldn't that put us back to a no asset case?

[MomIcantFindmy]

I am now wondering ...since we owe the IRS will they get paid out of our "asset" or are they just paid a percentage like our credit cards?

[southernbelle]

I hope the IRS gets more of a percentage than the credit cards. It might have to do with priority status.