Going over the personal property exemption limit

[ccaplinger]

I'm turning in our paperwork to the attorney Tuesday. When I added all of our "inventory" up earlier today I was about $500 over our state's property exemption limit ($3000). My husband and I went over everything this evening and made some adjustments but also some additions. What happens if you actually go over your state's exemption allowance? We do not have one thing of extreme value just a lot of little stuff that added up when we "inventoried" our possessions.

Just wondering if they will actually take a couple of valued items, say computer or TV and sell it off just to get below the limit.

[eddiep]

I doubt it, they would need to get enough money from the sale to make a dent in your debts. so if you have a tv worth $300, minus the trustee fees, not much going to creditors.

But, if you can not exempt it, the trustee can take it and sell it, so if it is not exempt it is not safe but why would they take it if they can not repay your creditors? I believe that the strategy is to use up all your exemptions on stuff they can't sell so that any bigger assets, like a car, boat, motorcycle become free for the picking!

Oh by the way $3000 total exemptions!? That is horrible, how do they expect you to start over?

[DeadManCrawling]

You sure you are valuing things properly?

That $2,000 plasma TV is really only worth a hundred bucks and those books that cost 30 dollars each are worthless.

Everything should be at garage sale prices, if that. And some things, like clothes and items only a particular person would want/use are really valued at zero. Like clothes and so on.

I can't imagine why you would have that sort of value in the first place, but think about it like this: Would YOU pay what you have listed for the items, if you happened across them at a garage sale and you had never met the person? In most cases, I bet you would not.

That is the way to price things, and is the way the trustee would price them as well. If you have collectibles or antiques, think of them as old junk. The trustee would not take time to sell them to people who knew what they were worth. The trustee would do the equivalent of yanking them into a side alley outside the courthouse and selling them to people passing by on their way to work.

Not many takers in those cases, and that is how they should be priced.

Good luck in everything!

[SocalBroke]

Lol!

The trustee would do the equivalent of yanking them into a side alley outside the courthouse and selling them to people passing by on their way to work.

Thanks for that mental image..During my 341 if I get nervous, instead of picturing the trustee in his underwear like is usually suggested, I'm gonna picture him in the alley with a bunch of my video games attached to the inside of his trench coat.

[DeadManCrawling]

I was once approached, in Savannah Georgia, by a man selling toothpaste, toothbrushes and dental floss out of a trench coat.

Seriously.

I was vacationing there from Tampa, FL.

I was intrigued. I didn't dare ask him where he got the stuff (or buy anything!).

I did as him what he intended to do with the proceeds from his windfall.

He was hoping to buy bus fare to return to. . . .Tampa, FL.

True story!

[DownNotOut]

Oh by the way $3000 total exemptions!? That is horrible, how do they expect you to start over?

You think that's bad? Try FL - the personal property exemption is only $1000. $2000 for married couples. I'll be filing singly (without hubby) and I'm trying to figure out how I'm going to fit personal property for a household of 7 into $1000.

Granted our homestead exemption is phenomenal - it's unlimited basically - but, we only get $1000 in one vehicle and $1000 in other personal property.

[doingpoorly]

You think that's bad? Try FL - the personal property exemption is only $1000. $2000 for married couples. I'll be filing singly (without hubby) and I'm trying to figure out how I'm going to fit personal property for a household of 7 into $1000.

Granted our homestead exemption is phenomenal - it's unlimited basically - but, we only get $1000 in one vehicle and $1000 in other personal property.

yea , Florida is a hard one to deal with the exemptions on. I live in Fl and will be filing with my dh....It gets really fun when you try to exempt for $2000 everything that husband and wife have as well as four children (3 are teens). We have a four bedroom house and have to figure out how to value things so that all six of us have belongings that are only worth $2000. If anyone has any ideas let me know. LOL

[flnybk]

yea , Florida is a hard one to deal with the exemptions on. I live in Fl and will be filing with my dh....It gets really fun when you try to exempt for $2000 everything that husband and wife have as well as four children (3 are teens). We have a four bedroom house and have to figure out how to value things so that all six of us have belongings that are only worth $2000. If anyone has any ideas let me know. LOL

We thought it would be hard to get everything in the $2000 exempt for FL. We used red cross and ebay for values. Came up with $3500. Figured if we had to pay back $1500 to "buy back our stuff" then so be it. Had our 341 meeting....We are a non asset. My lawyer said the stuff we listed are not worth going and selling, so they don't make you buy it back.
No one wants my couch with lollipop stains and juice stains on it. LOL