Question about Chapter 7 Asset Case

[jonance]

Hi,

I am going to file Chapter 7 in several months to get rid of investment property and a biz line of credit (non-consumer). I'm filing individually (without my wife). I have assets to declare, and most likely will have to buy back the equity of some of them (no problem..i have some family help). My confusion lies in whether or not I basically declare myself an asset case, or does the Trustee do it? Also, if i am all non-consumer debt, and i am clearly stating HEY! I KNOW I'M NOT GONNA HAVE TO PAY YOU SOME MONEY!! ...will the trustee maybe be more cooperative?

[keepmine]

Your only obligation is to list your assets and their value. The trustee will make the decison if you're an asset case or not. Let the trustee do his/her job. Don't commit to anything unless you have too.

[AngelinaCatHub]

You do not EVER say you are an asset case. Otherwise C13. If this is a business why not C 11 or C7 business? Be very careful and say nothing other than what they tell you. We became an asset case, and yes we paid back to get our stuff back. They were fair. Just listen to your lawyer of course and stay here for advice from past history. 'Hub

[jonance]

I will be doing chapter 7 non-consumer. You all answered my question though..just list values and let them do the figuring and negotiating.

[AngelinaCat]

I will be doing chapter 7 non-consumer. You all answered my question though..just list values and let them do the figuring and negotiating.

While listing your assets--and all your stuff for that matter--use YARD SALE or Craig's List prices. You don't have 'antiques', you have 'old furniture' or 'old dishes', whatever the item might be. For jewelry, check out what two or three pawn shops might pay you if you were to sell the item.

Some have recommended using eBay as a pricing guide: DON'T. eBay may have been a good pricing guide a few years ago, it isn't now. The standard joke is "I eBay, I pay.

Good luck!

[jonance]

From what i've been told by all attorneys, unless i have some very pricey antiques, furniture, collections, etc...the generous federal exemptions will cover all i own. I assume my non-filing spouse's jewelry and clothes are hers.

The main things i'm concerned about is our house with about $60k equity, paid off car, things like that. I'm pretty much aware the exemptions won't completely cover everything. My question was really whether or not I would attempt to exempt everything, or if i would fill out the forms showing i know there is non-exempt equity.

In other words, if i show there is non-exempt equity, but only a little, maybe they won't research it as much, do a house appraisal, etc...since the trustee would see i'm prepared to take a hit and aren't trying to squeeze by as a non-asset case.

[Shakin]

I think you need to talk to your lawyer....you dont sound like a 7. I think you want to get away clean but it really doesnt add up to me.

Have you talked to a lawyer? What did he say?

[DeadManCrawling]

In our case, filed this past Friday, we did not exempt one car. It was not listed on our schedule as exempt, since it was paid off and beyond the allowable exemptions. It is a 2001 BMW Z-3. KBB value is about 12k.

On our form, it was listed as an asset, but was not included on the exempt list.

From your brief details, I would think that listing all these things as exempt is going to raise many eyebrows. You may even receive deeper scrutiny for doing so. It looks suspicious, IMHO, even if that is not your intent. Then they may become curious about your income and expenses. All in all, not something I would envy.

Carefully ask your attorney how to handle this. Then follow their advice, keeping everything in the open.

Declaring all these exemptions, well over the limit, could cause you problems. Pick the things you really want to keep, that fall within the exemption limits. Be prepared to negotiate a price to keep the rest. That seems like the common sense approach.

Good luck,

-dmc