Now an asset case... yay!

[RBisDebtFree]

I loggen into pacer this morning and here's what I have found a docket reported with the following title "Trustees Notice of Assets on Case and Request to Set Claims Bar Date". Here's the docket text
The duly appointed Chapter 7 Trustee, after reviewing the case docket and file and determining that no claims bar date has been fixed, hereby notifies the Clerk of the United States Bankruptcy Court that assets will be administered in the above captioned case. An appropriate notice should be given to creditors to file claims.

I more than assume this makes me an asset case

Following the report above, there's an objection, spooooooky... filed by trustee against the Motion for Relief from Stay. The motion was filed by my mortgage company. The trustee objected to the motion because they had erroneous legal description of the property.

Can I please get your insight into this and what's potentially going on? Those of you who are asset cases or have experience with asset cases, what next should I be expecting? Will I receive some report that says what is being taken to administer the case? If so, when should I be expecting that report?

Of course, I'll ask my attorney as well -- but there are some many bright heads and people with experience that I just have to ask for your valuable input and insight.

Thanks to all of you!

[backtoschool]

I loggen into pacer this morning and here's what I have found a docket reported with the following title "Trustees Notice of Assets on Case and Request to Set Claims Bar Date". Here's the docket text
The duly appointed Chapter 7 Trustee, after reviewing the case docket and file and determining that no claims bar date has been fixed, hereby notifies the Clerk of the United States Bankruptcy Court that assets will be administered in the above captioned case. An appropriate notice should be given to creditors to file claims.

I more than assume this makes me an asset case

Following the report above, there's an objection, spooooooky... filed by trustee against the Motion for Relief from Stay. The motion was filed by my mortgage company. The trustee objected to the motion because they had erroneous legal description of the property.

Can I please get your insight into this and what's potentially going on? Those of you who are asset cases or have experience with asset cases, what next should I be expecting? Will I receive some report that says what is being taken to administer the case? If so, when should I be expecting that report?

Of course, I'll ask my attorney as well -- but there are some many bright heads and people with experience that I just have to ask for your valuable input and insight.

Thanks to all of you!

I was made an asset case on Oct 15, and the only other entry in pacer after I changed to an asset case was an entry showing that the clerk had mailed out the proof of claim forms to all my creditors with a letter informing them I am an asset case.

Once the deadline for filing a proof of claim passes, the trustee pays out the assets in the estate to the largest creditors that made a claim.

[justbroke]

Following the report above, there's an objection, spooooooky... filed by trustee against the Motion for Relief from Stay. The motion was filed by my mortgage company. The trustee objected to the motion because they had erroneous legal description of the property.

First, was all property that you own/owned exempted or were you actually already an asset case?

Second, the Trustee sees problems with the paperwork submitted by the Mortgage company. The Trustee is always looking for legal issues with liens because this is where the Trustee can make some serious money. Remember, the Trustee doesn't make money unless they find something. For the lender to have asked for relief from the automatic stay, and putting the wrong legal description, may indicate a problem with the mortgage/note. This is nothing for you to worry about since you were surrendering your home anyhow. The Trustee is just smelling "money".

The asset case designation, may be just because the Trustee thinks the home is fair game and the Trustee seems to be going after the home.

[RBisDebtFree]

backtoschool, did you have any way of knowing what assets are going to be administered and what the trustee is going to abandon?

Mostly, I am trying to see if all my exempt assets are going to stay exempt. But I guess the trustee would have to file an Objection to Exemptions to "unexempt" my exempt assets -- is that correct?

Thanks!

[backtoschool]

backtoschool, did you have any way of knowing what assets are going to be administered and what the trustee is going to abandon?

Mostly, I am trying to see if all my exempt assets are going to stay exempt. But I guess the trustee would have to file an Objection to Exemptions to "unexempt" my exempt assets -- is that correct?

Thanks!

Yes, the trustee will file an interim report on pacer that will list all the asset, both exempt and non-exempt and what was abandoned.

That may already be there. It is a spreadsheet like table and if it says FA in the last column, then the trustee is abandoning the asset. It will list in the last row, what the cash value of your non-exempt assets are.

I am a 1k asset case. My only asset is some 1k "preference" that I have no idea what it is.

[ace13]

Okay pls forgive my stupidity for this question...if one has enough exemptions to cover "assets" such as home car and cash etc. Can the trustee still make u an asset case?

I know I'm not answering your question but am curious how one is determined asset case v nonasset if exemptions are there

btw how did your 341 go if you don't mind me asking? Any flags there by the trustee?

[RBisDebtFree]

Thanks justbroke! I was not an asset case in the beginning, I was surrendering my house and keeping cars, $4k in my checking to rent a place (it actually cost me $3200 to get a place, only private LLs wanted a person with open bankruptcy) and other exempt assets like furniture, clothes, electronics, etc.

Good to know that I don't have anything to worry about. At this point, I only care to get my discharge and get to keep my exempt assets and hopefully not getting any APs.

[RBisDebtFree]

Yes, the trustee will file an interim report on pacer that will list all the asset, both exempt and non-exempt and what was abandoned.

backtoschool, how long after being switched to an asset case did you receive this report?

[justbroke]

Okay pls forgive my stupidity for this question...if one has enough exemptions to cover "assets" such as home car and cash etc. Can the trustee still make u an asset case?

The Trustee, if s/he didn't like your exemptions, would file an Objection to Exemption (or something similar). You would know from your 341 Meeting if the Trustee didn't like one of more exemptions you're claiming.

In this particular case, I don't see where the Trustee filed any objection on the exemptions, so it's likely that the Trustee is just prepping the unsecured creditors by setting a claims bar date by declaring an asset case. It is pretty telling that the Trustee contemporaneously filed the asset declaration at the same time as filing an objection to the Motion for Relief from the Automatic Stay. I wouldn't be surprised if the Trustee files another motion to Determine Secured Status. But, that's just my read.

It could even be something minor like some income tax refund expectation for tax year 2009.

[RBisDebtFree]

ace13, I believe there's no way to actually know that you're a no asset case until your trustee files a Report of No Distribution. That means that everything that you exempt is exempt and trustee asks to be discharge from the duty of trustee in your case.

I guess if you exempt your house, car(s), etc. and have enough exemptions to cover the equity in the above-mentioned, then there should not be any issues.

In my case, I don't understand how they will administer any assets on a house that's worth about $500k when I owe over $650k on it (which was appraised at $920k at some point but I didn't sell cause construction wasn't finished).

In regards to the 341 meeting, the only thing that was out of the usual course of the meeting is trustee's questions about the property, liens and a guarantee that my mortgage got on my parents' place by the parents' agreeing to become guarantors for our place. Trustee mentioned right at the meeting that my mortgage company has too much of assets securing their liability...

[backtoschool]

backtoschool, how long after being switched to an asset case did you receive this report?

I received the interim report and then was made an asset case a day or two later.

The trustee did not object to any of my exemptions. A 1k "preference" is my only asset, and the only way I found out about that is in the interim report.

The interim report was filed on day 42 of my 60 day waiting period and I was made an asset case on day 43.

[justbroke]

In my case, I don't understand how they will administer any assets on a house that's worth about $500k when I owe over $650k on it (which was appraised at $920k at some point but I didn't sell cause construction wasn't finished).

If the Trustee can quash the creditors lien on the home... it's $500K or assets that you own. It would not matter what you owe on it, as your liability is discharged in the Bankruptcy. The key is whether the creditor has a valid lien. If they do not, then they are out of luck. The Trustee will either file a Motion To Determine Secured Status and Avoid Lien and/or file a Motion to Sell Free and Clear of Liens.

[RBisDebtFree]

justbroke, that would be to determine a secured status on the house, correct?

Also, you mentioned something about the 2009 tax refund. Did you mean that he might include that as an asset as well? What if I chance my exemptions on a W4 in a way that I have a balance due instead of a refund on my 2009 tax return?

[RBisDebtFree]

backtoschool, I am on my day 43 so I guess I should be expecting my report sometime soon.

[ace13]

Thanks for the info all...I am concerned about my tax refund which is mostly eitc, child tax credit and reimbursement for daycare expenses. Does anyone know if those monies are "welfare" benefits and not touched in PA bk?