Trustee taking non exempt assets?

[angles]

How does this process work? Do they just show up to your door unannounced and pick up the item?

[lrprn]

How does this process work? Do they just show up to your door unannounced and pick up the item?

First of all, understand that the amount of asset value or cash that can't be protected will influence what options you and your trustee consider.

If the unprotected asset value is less than $1000, chances are the trustee will do nothing. It would cost more to seize and liquidate it than that.

If the unprotected asset value is more than $1000, then you have three choices for how to deal with that: (1) offer to pay the trustee the unprotected amount in a certain number of payments spread out over a specified period of time; (2) surrender the asset to your trustee; or (3) do nothing and see what your trustee does. Some trustees don't want to mess with liquidating assets, and some will come after the asset or demand payment of the unprotected amount if you want to keep the asset. Your lawyer will know what to anticipate from your trustee.

Under no circumstances will someone from the trustee's office just show up to take whatever isn't protected from your home without notifying you and your lawyer first. (The bk court is not a repo company ) You will always have a little time to figure out what to do and if you want to offer a payment plan to keep the asset in question or just surrender it.

The best case scenario is that although the asset isn't completely protected by exemptions, your trustee decides it's not worth coming after. Your bankruptcy ends and you still own the asset. It happens fairly frequently, especially when the value of the item is low or it's hard to sell quickly.

Talk to your lawyer to find out what to expect in this situation of yours.

[dakota112]

we put down our unprotected assets value as 800 dollars. Our case was discharged almost 3 months ago. We had a fairly large income tax refund which the TT is distributing to the creditors so I suspect that is why our case hasn't closed yet. I haven't heard anything about this relatively small unprotected asset( mostly old junk, old furniture and clothes). I figure if the TT wants it he can go get it and try to sell it in a garage sale or consignment store) It is in a garage 2,000 miles away from where we filed which he knows. I would like to throw it away or give it to goodwill but don't know if I show wait for case to close first.

[lrprn]

we put down our unprotected assets value as 800 dollars. ... I would like to throw it away or give it to goodwill but don't know if I show wait for case to close first.

If your case has already been discharged without your trustee going after the $800 worth of "stuff", it should be safe to give it away/throw it away.

However, if you want to be 100% safe, since the "stuff" is listed as part of your bankruptcy estate and if it's not a big deal to hang on to it for a little while longer, then it's ikely best to wait until your case is officially closed.

If you filed with a lawyer, he/she knows what your trustee is likely to do in this situation. Give them a call or email and ask for their advice.