Whew...

[momtoroxy]

341 is DONE!

What an experience. I don't know if our trustee was hard core, or some of the attorneys didn't do their jobs. The first case was continued because the trustee did have any info on the case. The second case was similar, but I think the trustee felt bad because one of the debtors was elderly and used a walker, so he read over the paperwork and asked them a few questions.

We were near the end of our group. He swore us in, checked out IDs/SS cards, had us state our address, and then...

he asks us why we filed. We explained why. He asked where my husband worked (he was laid off in Aug and started a new job 2 weeks after we filed...we weren't waiting to file, it's the first job he could get). I am a little nervous because when DH told the trustee when he started working, the trustee replied "oh, right after you filed" but then didn't say anything else about it.

The only thing he seemed concerned with was the fact that we have a pending insurance settlement for a car accident that DH was in back in July. He wanted to know what the status of that case was and wanted the personal injury attorney's information. He told us that "he" was in charge of that case now too. Our lawyer put on our schedules that we have pending $15,000 which would be exempt.

Why is he so concerned with the settlement? Does he just want to make sure it won't exceed the exemption amount? I don't think it will, because though the car was totaled, the injuries were minor.

So, I guess I just need to NOT worry about it!

Does anything seem strange or like a big red flag about anything? Just curious.

so, YEAH! 341 is DONE!

[AngelinaCat]

It may be that it is something they look at as a general rule. I remember we were asked if we were expecting any settlements, and did anyone owe us any money.

Anyway, WELCOME to the 60 Day Club!!

[BobMango]

The only thing he seemed concerned with was the fact that we have a pending insurance settlement for a car accident that DH was in back in July. He wanted to know what the status of that case was and wanted the personal injury attorney's information. He told us that "he" was in charge of that case now too. Our lawyer put on our schedules that we have pending $15,000 which would be exempt.

We had an insurance settlement that we had to exempt to keep. Medical and actual damages are exempt, but pain and suffering payments are not exempt from seizure in bankruptcy. This may explain his interest in your case.

[momtoroxy]

Interesting. Our attorney put it as a possible exemption (we don't know if/what it will be yet). Hubby's car was totaled, so the insurance took care of that. We do have probably 2500-3000 in medical bills. But, the remainder of a settlement would be pain and suffering.

Our attorney told us that as long as we didn't get more than $16,100, we were fine and could keep it.

Hmmm...

[ForTheBest]

I think it depends on how the settlement is written up. Check with your personal injury attorney and your bankruptcy attorney. Even though it may seem that most of the settlement would be for pain and suffering, it may not reflect an actual amount for pain and suffering at all. That could be what your bankruptcy lawyer is figuring will happen and why he's saying you'll be able to keep it all.

I also had a pending personal injury claim from a car accident listed and exempted on my schedules. When the trustee saw it, she requested copies of all the documentation pertaining to the claim.

Both my personal injury lawyer and my bk lawyer explained to me that she could do any of the following after reviewing the materials: allow the entire exemption; disallow part of it "if she thought the numbers didn't add up" (then use the disallowed amount to pay creditors); or, worst case, take over negotiations on the claim herself if she figured she could get a larger settlement than the amount the personal injury lawyer had been negotiating for (thus bringing the total up higher than the exemptable amount so there would be money for creditors - after her fees).

As it turned out, once she looked at everything, she filed a report of no distribution pretty quickly.

Someone else on here posted that their trustee questioned them about their claim at their 341 and immediately allowed the total exemption. I guess it just depends on the trustee.

Here's hoping that you get your no asset report very soon!

[momtoroxy]

The trustee told us that he would now be "in charge" of the settlement case. He also said that our PI attorney would be "employed by him" so...I don't know! I sure don't want to get turned into an asset case. But, I also don't think our settlement will be that much. I guess that the attorney is prepared to send the "demand letter" to the insurance company. We'll see...

Thanks for all the info, I appreciate it! I will keep you posted.

[ForTheBest]

Yes, once you file, because the claim becomes part of the bankruptcy estate the trustee "owns" it. The PI attorney has to suspend his negotiations until the trustee gives the okay for him to proceed (by filing a report of no distribution, for example).

But just because the trustee questions you about it, it doesn't mean he'll turn you into an asset case and take any of it. It's just his job to look for assets to use to pay creditors. Once he talks with your PI lawyer and determines that the potential claim is reasonable, etc., chances are excellent that you'll be fine.

I think you're smart not to worry about it.