Please help me with my story

[LSUTiger32]

It will get worse the night before, and then you will be there and it will go by quickly.

Even when my trustee was grilling me, it still went by quickly, and wasn't that bad because I was prepared. You are super prepared. Your 341 is not going to be an issue.

Thanks bts! I know I am over prepared but I just have this recurring nightmare that something horrible is going to go wrong.

[backtoschool]

Thanks bts! I know I am over prepared but I just have this recurring nightmare that something horrible is going to go wrong.

That's EVERYONE'S nightmare about a 341. You are not alone. Seriously, the worst that can go wrong is that the trustee grills you, like mine did. If you are prepared, you will stand up to the grilling. And the grilling won't be mean, it will just be asking you to explain details, which you are ready to do.

My substitute lawyer just stood there like a proxy idiot while I handled the grilling myself. You know your details inside and out. If a trustee asks you about large deposits, you are ready. You know what your homes are worth. You know what they are costing you. You have proof. The worst case scenario is that you have to share what you already know with the trustee.

The best case scenario is that the trustee is running behind and is bored with your story and you don't have to answer many questions at all.

Either way, you are ready.

[LSUTiger32]

That's EVERYONE'S nightmare about a 341. You are not alone. Seriously, the worst that can go wrong is that the trustee grills you, like mine did. If you are prepared, you will stand up to the grilling. And the grilling won't be mean, it will just be asking you to explain details, which you are ready to do.

My substitute lawyer just stood there like a proxy idiot while I handled the grilling myself. You know your details inside and out. If a trustee asks you about large deposits, you are ready. You know what your homes are worth. You know what they are costing you. You have proof. The worst case scenario is that you have to share what you already know with the trustee.

The best case scenario is that the trustee is running behind and is bored with your story and you don't have to answer many questions at all.

Either way, you are ready.

Thanks!!! I am ready for it to get here, the time leading up to it is the worst!

[marie]

good Luck LSU !!

[LSUTiger32]

Thanks Marie.....and welcome!

[LSUTiger32]

I am only 15 hours away from my 341! AHHHHHHH!

The nerves are slightly building up, but I am OK. I am ready to get this done!

[marie]

be sure to update us tomorrow afternoon! wish it was me

[LSUTiger32]

Well it is here. Getting the kids ready for school and then I'll have about three hours to make sure I have everything together that I want and need (like DL and SS card). Leaving at 12, the courthouse is about 20 minutes from here so that should get us there early enough to see a few other cases.

[LSUTiger32]

Just got to work after leaving the 341. Here's the story:

We got there around 12:30 and they (turned out to be him) were at lunch. The door was locked so we sat in the hall. The trustee got there at about 12:45 and he was the only employee there, no clerk no one else. There was 8 meetings scheduled, but only 5 showed up.....maybe the others got continued. There is a waiting room and then a room with the people scheduled for that half hour. They called everyone with a 1PM appointment into the other room, so there was only the 5 of us (some couples, some singles). We were last on the docket which was nice, not only because we got to watch the other 4 but also because there was no one else in there when we went. The first guy to go was divorced and he took at least 20 minutes. He had like three businesses, guns, swords, machinery, a house that his ex has, and he even co-signed on an airplane in 1996. LOL!! Needless to say the TT grilled him silly. The other were pretty quick and at that point I had a good idea of what we were in for.

We got up there.

TT: Raise your right hand. Do you blah......
US: We do.
TT: State your names and addresses for the record.
US: Blah.....
TT: Did you receive all the paperwork?
US: Yes
TT: Did you read it all and sign it?
US: Yes
TT: Any errors or omissions?
US: No
TT: Have you ever filed before?
US: No

These questions were standard, he asked everyone those.

TT: The property you own (primary residence) on you schedule you valued at $220K but on your tax return you valued at $305K.
US: Had it appraised in 2008, $305K......had it appraised three months ago, $220K.
TT: You received a large tax refund last year so I will need to see your 2009 one before you cash any refund check.
US: OK. (He gave us a document.....more about this later.)
TT: You have $615 in college savings for your kids.
US: Yes sir, it is in a ESA. (Both him and my attorney seemed unsure if this was touchable or not.)
TT: Are your 401K accounts ERISA qualified?
US: Say what? (More about this later.)
TT: You had $435 in your bank accounts the day you filed, is that correct?
US: Yes sir.
TT: Your timeshare, it is a Disney one?
US: Yes sir.
TT: I just got $3,000 for one of those.
US: We owe $7,600.
TT: (Face sours....) Oh.
TT: The property you valued at $0, how did you come up with that?
US: There are 20 of them where the houses we literally blown up by the storm surge from Katrina.
TT: OK.
TT: Any creditors present?

Crickets chirp..........

TT: I am abandoning your primary residence as worth less than you owe. I am abandoning your rental property. I am abandoning your cars. I am abandoning your timeshare. (Basically he abandoned everything.) I am exempting your car that you are keeping.
US: OK (with deer in headlight look because he have no idea why or what he is saying)
TT: No further questions, good luck to you guys.

Total time: Maybe 5-6 minutes.

What I gathered:

He wants our tax return, and I think he is going to come after the 401K contributions we made this year and he even seemed like he wanted the kids college fund. That would be low.

I have no idea what happens from here!!!!

HELP!

I think it went well???

[fooked]

had you in my prayers... sounds like it went okay... other than the college funds... but who knows?

[backtoschool]

Here is how I interpret the 341 from what you wrote:

1. He is not turning the properties into assets, which is great because that means you will be discharged sooner.

2. He is going to go after your 401k contributions and your college fund contributions.

3. He is not going after your car.

4. He is going after your 2009 tax return.

5. He is not going after your timeshare.

What will determine whether he gets the 401k or college fund money is when you transferred it into the account. If the college fund money was put in there recently (within the last year) he will take it. He can only take the 401k money if you put it in there somehow as separate from the automatic contributions from work.

Congrats on getting through your 341! How does it feel?

[LSUTiger32]

had you in my prayers... sounds like it went okay... other than the college funds... but who knows?

Thanks so much!!! I really appreciate it. I would hate to lose the kids college funds, but in the long run I will be able to do a lot more than $600 for them having gotten this done.

[LSUTiger32]

I was wondering guys, if he decides to take say the college accounts ($600), the 401K contributions (about $1,100 for the year) and a portion of the tax return will I have to pay that immediately and will he strip the accounts? Or.....will he give me a payment plan of some type?

[LSUTiger32]

Where are all my buddies? I am trying to figure out if I am in the 60 day club!!!!

[backtoschool]

Where are all my buddies? I am trying to figure out if I am in the 60 day club!!!!

It sounds like he will take the college fund if you put the money in it this year. He can't legally touch the 401k funds unless you didn't directly roll them over.
He is going to take your tax return.

It's not clear if he concluded your 341, or is waiting to check on the college fund and 401k to conclude it.