Had my 341 today...Trustee wants a couple of things first

[dms0122]

341 went smooth for the most part. He requested proof of a bank account, 12 months of credit card statements, and a Home inspection.

HOME INSPECTION...WTF??? What is involved? Can anyone tell me about the process?

[newbie2]

341 went smooth for the most part. He requested proof of a bank account, 12 months of credit card statements, and a Home inspection.

HOME INSPECTION...WTF??? What is involved? Can anyone tell me about the process?

The only home inspections that I have heard about are from people who live in Florida. (You don't state where you're from) It sounded like the trustee sends someone to put a value on their personal property.

Asking for 12 months of credit card statements sounds a bit odd also, but perhaps that is the norm in certain areas.

Good luck to you.

[Mi Bankruptcy]

12 months worth of credit card statements..that seems over the top. However, I did download mine before I filed BK..just in case.

[dms0122]

The 12 month of credit card activity was initiated after I had said the last time I have used my credit card was the ending of last year.

I am in Florida maybe that is why they wanted a home inspection. I have been reading that it is common here.

I have just started to search on the home inspection and I am getting really scarred. I am learning that they put an inflated value on things and the florida exemption of 1K per person is not enough to cover the littlest of assets. If one is apraised higher than the alowance, they have a 14month interest free period to repay the difference.

Now my question is what if I tell them to take the assets??? What will they do?

[spetkovich]

You don't mention what District you're in, but in the Southern District the Trustees typically have an auctioneer come to your home and appraise all of the belongings that are there at the time of the inspection. The value placed on the items are the anticipated auction values. They are not terribly inflated, based on the reports I've seen, though they're certainly higher than the garage-sale or flea-market values that debtors typically schedule.

First: Just because the appraiser SAYS your property is worth $X does not mean you are bound by that number. If the home inspection is done and you feel the value placed on your furnishings is grossly disproportional to the actual resale value of your goods, you may choose to contest it.

Second: Trustees typically ask for home inspections so as to push you over the $1,000 personal property exemption. Let's say that the Trustee claims your property is actually worth $2,500, leaving you over-exempt by $1,500. The Trustee does not actually want your home furnishings, the Trustee wants you to pay him/her the $1,500. I have seen a few Trustees in the Southern district give debtors a lot of trouble if they try to surrender the items in lieu of paying out the $1,500 (or whatever the over-exempt value is). For example, sitting debtors down for 2004 exams and tearing apart every transfer allegedly made in the past four years.

Is this how it's "supposed" to go? Not exactly, but the Trustees are in this as a business, too.

With that in mind, if your property comes in at a value significantly higher than your scheduled value, please consider getting an attorney to deal with the Trustee.

[justbroke]

Trustees typically ask for home inspections so as to push you over the $1,000 personal property exemption.

spetkovich is right on the money here... and it is all about money. Someone living in a $300K or even a $200K home and say that they only have $1K in furnishings... is probably undervaluing things. So much so, that the Middle and Southern Districts of Florida are notorious for sending out appraisers. It only makes sense.

Is this how it's "supposed" to go? Not exactly, but the Trustees are in this as a business, too.

Trustees are incented to find the money. They can't just find money for themselves, but finding money motivates them. The more they find, the more they make. But, alas, Floridians need to stop worrying about the Trustee making money. The serious point is... how does a person with a $300K+ home in Florida have less than $1K in all valuables (clothing, electronics, furniture, etc)?

Also, as spetkovich pushes... fight the Trustee on valuation. Don't take the appraiser's word for things.

[ready2puke]

Wow sounds like extortion...if someone doesn't have the money to buy their stuff...that sucks

[albacore44]

crap............Fla sucks. glad i'm in California (for BK at least)

[bobbyquefour]

Yes, FL can be tough in many ways, for sure!

[justbroke]

Wow sounds like extortion...if someone doesn't have the money to buy their stuff...that sucks

In the end, it's not. Think about it... you get to discharge tens if not hundreds of thousands of dollars in debt, to surrender... $1K worth of junk you probably don't want anyhow.

That's a bargain, and I would bet that ANY CHAPTER 13 debtor on this Forum would love to give up even $4K of money to be out of their Chapter 13 now. I speak from experience.

If you own your home outright, and it's more than $150K or so.... there's no place like Florida (or Texas) with the unlimited homestead exemption. Of course, this is why the rich buy homes here and homestead them.

[seFlaDude]

dms0122, what district are you in? I am in the southern district and hope to avoid something like that

[newbie2]

That's a bargain, and I would bet that ANY CHAPTER 13 debtor on this Forum would love to give up even $4K of money to be out of their Chapter 13 now. I speak from experience.

.

You betcha! I would let any trustee come and strip my house bare if it meant the 13 would end. Absolutely!

[Jackdog]

Actually Florida isn't that bad for BK.

But yes Florida sucks. I hate living here lol .

Florida has a huge homestead exemption. But the exemption for personal assets are much smaller. $1000k is all you get filing single for household items. I'm middle district. Like others have posted if your house is only worth say 100k odds of the Trustee wanting to have someone come out are small. Now if your house is worth 300k or more they will assume you have more than 1000k (single file) in personal assets.

[BCA2009]

Yep Florida Sucks! I'm looking out of my office window at the sun glimmering off the beautiful bay as I write this. Last weekend, went out with friends and caught fish and drank beer trolling up and down the beach. Can be on the beach from my house in 15 min or out in the bay in 5 min. I walk the dog along the waterfront after work every afternoon and watch the sunset. As long as you avoid the tourist traps there are lots of good restuarants.

I tell everyone not to move here! It will just make it more crowded for me!

[justbroke]

I tell everyone not to move here! It will just make it more crowded for me!

I've joined the "don't move here" campaign too. More fish for me. LOL!