I know the trustee is going to grill us next week...how should I handle it?

[GettingGoing]

I contacted the trustee's office to find out what documents she wanted me to send her prior to our 341 meeting. She is requesting:

- 6 months pay stubs for my wife and I
- 2008 and 2009 tax returns
- recorded deed for our home
- proof of value for our home
- homestead declaration (if needed)


We had a sizable refund (7k) that we received at the end of January. This money is now gone. It was spent on helping to catch up on utilities, mortgage, and everyday expenses. I did make a couple of $500 purchases with the money but I did exempt both of those items. How concerned should I be that she is going to throw a fit about the refund being gone? On the means test we are 30k below median. I have read that the trustee can take a tax return and add it to our monthly income. If she did this it would give us a positive dmi on sch J. Any thoughts on what I should say when she questions us?

As far as proof of value of home, how should I go about getting this? I had a real estate agent do a market analysis a couple months ago and after doing the analysis, emailed me the approx value of our home which is what I used in the schedules.


Lastly, in Virginia we are required to file a homestead declaration if we need to use the homestead exemption which we do. From my research we have up to 5 days after the 341 to file the declaration. I have it ready to go now but worry that if there is a problem and our bk7 gets dismissed that the declaration is wasted and wont be available when we refile ch7. Is this how it works or would we still be able to use it since it never protected any of our assets?

Thanks for any advice.

[keptdigging]

This all sounds pretty routine... why do you think you'll get grilled?

I would expect that you'll be asked if you can document where the $7K went. Mostly that would be the TT trying to see if you hid it somewhere. The idea that it counts as income is crazy (it's a tax refund for taxes withheld from income and since the means test uses your gross/pretax income it was already counted as income the first time!) but I have heard some crazy means stories in some districts.

Whatever your real estate agent gave you as a result of a market analysis is your proof of value. But you can go farther (show the comps the RE agent used or even get a professional appraisal)... probably a local and trustee specific thing as to what is good enough.

Can't give you any advice on VA homestead declaration... any VA people around?

[GettingGoing]

This all sounds pretty routine... why do you think you'll get grilled?

I would expect that you'll be asked if you can document where the $7K went. Mostly that would be the TT trying to see if you hid it somewhere. The idea that it counts as income is crazy (it's a tax refund for taxes withheld from income and since the means test uses your gross/pretax income it was already counted as income the first time!) but I have heard some crazy means stories in some districts.

Whatever your real estate agent gave you as a result of a market analysis is your proof of value. But you can go farther (show the comps the RE agent used or even get a professional appraisal)... probably a local and trustee specific thing as to what is good enough.

Can't give you any advice on VA homestead declaration... any VA people around?

Maybe the trustee wont drill us on the tax refund. Take bank statements for the last 5 months with me so that the trustee can see exactly where all the money went to. I have nothing to hide so hopefully its not a problem. As far as refunds being counted as income, we did not pay 7k in taxes last year. I was seriously injured at work mid 2009 and since workers compensation is not taxable we qualified for for earned income credit and a couple other credits due to low income. I guess we will see what happens. The closer we get to our 341 the more nervous I get.

[GettingGoing]

Well Monday is the big day. I wont sleep much this weekend. Hopefully everything goes smoothly. :eeek:

[Meatstick]

I am sure it will go just fine. We were way over the median and thought we would get hammered even though we passed the means. All the TT was interested in was how he spent our $10k tax refund and if my wife was still not working. Didn't even ask anymore questions. We were really surprised as we were almost double the median income.

Relax, you will be fine !

[GettingGoing]

I am sure it will go just fine. We were way over the median and thought we would get hammered even though we passed the means. All the TT was interested in was how he spent our $10k tax refund and if my wife was still not working. Didn't even ask anymore questions. We were really surprised as we were almost double the median income.

Relax, you will be fine !

WOW with us being 30k under median income hopefully they just push us through the system. Thanks for the encouraging words.