Why file as no asset when it will be an asset?

[coolmom04]

I was just wondering... why would our attorney file our case as a "no asset" when clearly we will be an asset case - we have the $1100 insider payments to MIL that we will need to pay the trustee to keep him from going after MIL and then my husband has the whole restricted stock units & stock options issue that will most likely be an asset...

So, why would the attorney file no asset?

[AngelinaCatHub]

Go by what your paying for. Perhaps the stock options could not be touched until redeemed. The preferential payment will convert your bk into an asset case, but let that happen by means of your Trustee. We had to pay back $5000 in preferential but the Trustee gave us a payment plan. We had a great Trustee for all the mistakes we made. 'Hub

[BCA2009]

Our attorney did the same thing, filed as no asset, when we knew we would have to pay for some non exempt stuff. Our non-exmpt items were about 6K. Maybe he thought there was a chance the trustee wouldn't go after the assets.

The trustee was nice, he asked us how we came up the value of the assets. My lawyer and I was expecting to pay about $5,800 based on what we put in the schedules. Part of it was due to excess household goods. Then the trustee just said "Does $4,000 sound fair". Of course I said yes. He left almost 2K on the table just be nice. It was a very nice 341 meeting.

[JackBondLove]

Our attorney did the same thing, filed as no asset, when we knew we would have to pay for some non exempt stuff. Our non-exmpt items were about 6K. Maybe he thought there was a chance the trustee wouldn't go after the assets.

The trustee was nice, he asked us how we came up the value of the assets. My lawyer and I was expecting to pay about $5,800 based on what we put in the schedules. Part of it was due to excess household goods. Then the trustee just said "Does $4,000 sound fair". Of course I said yes. He left almost 2K on the table just be nice. It was a very nice 341 meeting.

That doesn't sound so good. Was the $5800 of items easily salable? I suppose that if you really wanted to keep those items and the replacement value was way over the $4K, then it was a good deal.

[coolmom04]

So, when you all made deals with the trustee and you paid the money to him/her, did they then close your case.. and how long did it take after the 341 for your case to close?

[HHM]

Why file as no asset even if you know it will be an asset case...


To make the trustee work for it

[pcn]

Between our 2 vehicles we had 10k+ in unprotected assets. I was sure we'd have to buy it back, but we were filed as no asset, and our trustee didnt question anything.

[BCA2009]

That doesn't sound so good. Was the $5800 of items easily salable? I suppose that if you really wanted to keep those items and the replacement value was way over the $4K, then it was a good deal.

We had 4K of unexempt equity in a vehicle and about $1,800 unexempted household goods, buy our (me and attorney) calculations. So the trustee, basically ddin't make me pay for the excess household items. So he was being more than fair.

Florida only has 2K of household exemptions (1000 per person) so you really can't exempt all of your personal assets, even at flea market values. We vauled ours at $3,800. If you go in too low, the trustee can send someone out and appraise your stuff. My attorney recommeded not trying to come in under the 2K. We been married 15 years and had nice salaries for most of that time. therefore it would be expected that we would have some nice stuff. We were trying to be realistic and not ask for trouble. Our honesty paid off, because the trustee ended not making us pay that value anyway.

I am having to pay it back over twelve months, so the case wont be closed for another year.

[AngelinaCatHub]

Our attorney did the same thing, filed as no asset, when we knew we would have to pay for some non exempt stuff. Our non-exmpt items were about 6K. Maybe he thought there was a chance the trustee wouldn't go after the assets.

The trustee was nice, he asked us how we came up the value of the assets. My lawyer and I was expecting to pay about $5,800 based on what we put in the schedules. Part of it was due to excess household goods. Then the trustee just said "Does $4,000 sound fair". Of course I said yes. He left almost 2K on the table just be nice. It was a very nice 341 meeting.

Yes, of course it is a crap shoot. But, honesty and the fact that you are in trouble with no background of bk's before, does help. These Trustees are human and yes of course as in all of life, you can find an @$$ whole, but for the most part, they are now more than ever overwhelmed in work. Many may be "cherry picking" the best for their percentage.

I feel mine was more than fair with me. Yes the case will NOT be closed until the obligation has been met. So ours went about three years with other problems. Was it worth it? Well, of course and no we will not repeat our mistakes. Some were not of our making. Some were. Those we can control. 'Hub

[frogger]

Why file as no asset even if you know it will be an asset case...


To make the trustee work for it

Exactly! Same situation for us. We all knew that we were going to be an asset case, but it was filed as no asset.

Perhaps you catch the trustee on the day they're not paying attention.

[coolmom04]

Perhaps you catch the trustee on the day they're not paying attention.

Man, that sure would be nice! Our attorney put it this way I think.. the trustee won't bend over just to pick up a penny, but if he has to bend over to pick up a dollar, he's going to pick up all the pennies, too! So, since we have the insider payment, the trustee is more likely to go after other stuff - like the stupid stock options, etc.