Got a call from Paralegal today and I'm confused.

[rachbo]

My case was an asset case for my tax return, I've been discharged and soon to be closing, Trustee has submitted his final report. I live in Indiana.

I turned my car back in (before the 341) because the engine blew up, and I wasn't going to reaffirm when the new engine would cost more than I owed on the car.

Now the Paralegal called saying she received a call from the Trustee's assistant saying that the bank sold my car for more than I owed and the bank has sent a check for the extra amount.

The paralegal wants to submit some type of paperwork, trying to adjust my exemptions so I can have the check for the extra $ from the car.

She is not sure it will work, and said she has to act quickly, and I am to come in tomorrow to sign some papers.

WOW - I guess I'm just confused that the extra money would go to the Trustee to distribute....really shocked and afraid to get my hopes that I may get the money.

Does this make any sense?? that I would get the money?

Thanks in advance.

[FreshLikeADaisy]

Rachbo, that makes perfect sense. She's right; since the car's equity (blown engine or not) predates your bk and belongs to the bankruptcy estate, the trustee is entitled to the proceeds of any sale unless you exempt it.

I'm kind of amazed that you got any cash out of your beater, but don't just stand there... go sign the papers and exempt it!!! That's GREAT news; you're lucky to have an atty looking out for your interests so proactively. Good luck!!!