Need Help ASAP - Trustee Wants Me to Amend Schedules

[mscrusader]

Hello all!

I recently attended my 341 meeting and I had two distinct situations happen I need help with, as I filed pro se.

1) The bankruptcy trustee specifically told me to amend the schedules in my case to remove amounts which are not tangible (i.e. deposits held by utility companies and my landlord), as well as amend the schedules regarding my income. He says I am qualified for a Chapter 13 case, since I had a garnishment coming out at the time of filing but not now (bankruptcy stayed the garnishment, right?).

2) A creditor from a furniture company came to the 341 meeting and wants to collect the furniture. I have claimed the furniture as exempt property, which is only worth 500 dollars anyway. The trustee told the company they should file a motion of lift the automatic stay, or wait for a discharge.

This whole process has went by smoothly for the most part, but this new situation has became extremely stressful, especially when the trustee wants me to amend schedules. I thought the schedules are a reflection of my situation when I filed for bankruptcy, not months after filing.

Please advise! Thanks!

[keepmine]

If the furntiture is financed, the company has a secured interest in it and can repo it if you don't pay.
Payments made on debts that are discharged don't count as an expense.
Wha sort of disposable income are you showing?

[justbroke]

1) The bankruptcy trustee specifically told me to amend the schedules in my case to remove amounts which are not tangible (i.e. deposits held by utility companies and my landlord), as well as amend the schedules regarding my income. He says I am qualified for a Chapter 13 case, since I had a garnishment coming out at the time of filing but not now (bankruptcy stayed the garnishment, right?).

Well, the means test should have showed you if you qualified for a Chapter 7 or not. In any event, some Trustee's don't like deposits on the schedules unless you are the landlord.

2) A creditor from a furniture company came to the 341 meeting and wants to collect the furniture. I have claimed the furniture as exempt property, which is only worth 500 dollars anyway. The trustee told the company they should file a motion of lift the automatic stay, or wait for a discharge.

The first rule in Bankruptcy is that liens survive bankruptcy. The problem is that the lien doesn't go away. You'd have to strip the lien off. This is done through a lien avoidance process.

Since it is highly likely that the furniture company enjoys what's called a purchase money security interest (PMSI) in the furniture, you won't be able to avoid the lien. In short, they can come and get it regardless of the equity you hold in the property... after a motion and being granted such motion by the court. (If you purchased the furniture directly from that furniture company, then they probably have a PMSI. If you used your furniture as collateral to get a signature loan at CitiFinancial or HSBC, then it's a non-PMSI and you could avoid/strip the lien!)

The schedules do reflect your current situation, but if you somehow included a judgment or garnishment as an expense, that just isn't your situation. As you learned, garnishments all come off with few exceptions. Those exceptions are usually for fines, child support, and other type support payments.

[soleprop]

i'm sorry you're running into issues - you should adjust your expenses on schedule J to include prorated monthly cost for tire replacement, contact lenses, glasses, etc. if those apply to you - also if you drive a car that's 10 yrs old or older, you get an automatic allowed expense of $250 a month, i believe it is, in vehicle maintenance.

also don't forget renter's ins (if you rent - get that on there and going), and max out your car ins. protections for the next few months and put that adjusted rate on the schedule, too.

these are a few tactics to help ensure your disposable income is low enough to allow you to squeak through with the CH7.

as for the deposits thing - weird. do what the trustee wants, i guess....though if you can find it in the bk code where it says to include the deposits, i'd make a copy of that and submit it for the trustee's review.