Question regarding "Assets"?

[Silver26]

Hello yesterday I had my 341, Went just fine I was not asked anything extra about our case. Trustee was very nice. I knew beforehand that the trustee would ask for 25% of the wages earned the week before we filed. I also knew he would take our tax refund if we got one. No issues with any of that, does this make us a Asset case then?

I checked pacer The Trustee reports that he or she now holds funds of this bankruptcy estate or expects to receive funds which should result in a dividend to creditors who were previously instructed not to file claims. The Trustee hereby requests that the Court fix the last date for filing proofs of claim and that notice be given to creditors. Is this normal? I checked the deadline/schedule and its shows 9/20 as the last date for anything.

Thanks!

[HHM]

Yep, that makes you an asset case. In the big picture, not a big deal. Once you receive your discharge, you are still, basically, done. Your discharge will occur at its normal time. The fact that you are an asset case does not change when you receive your discharge. What you are seeing on PACER is the behind the scenes stuff of the trustee administering your asset case.

[Fallonedward]

Hello yesterday I had my 341, Went just fine I was not asked anything extra about our case. Trustee was very nice. I knew beforehand that the trustee would ask for 25% of the wages earned the week before we filed. I also knew he would take our tax refund if we got one. No issues with any of that, does this make us a Asset case then?

I checked pacer The Trustee reports that he or she now holds funds of this bankruptcy estate or expects to receive funds which should result in a dividend to creditors who were previously instructed not to file claims. The Trustee hereby requests that the Court fix the last date for filing proofs of claim and that notice be given to creditors. Is this normal? I checked the deadline/schedule and its shows 9/20 as the last date for anything.

Thanks!

Why does the trustee ask for 25% of the wages earned the week before you filed? Is this I should budget / save for?

[justbroke]

Why does the trustee ask for 25% of the wages earned the week before you filed? Is this I should budget / save for?

This is District-specific. Not all Districts require this, and in many Districts, you should be able to exempt the money anyhow.

The reason why the Trustee gets his hands on the money is because it was earned but unpaid before filing. They consider that property of the bankruptcy estate. I personally think it's cruel to kick a person when they're down, but most States only exempt 75% of earning from "garnishment", and the Trustee is doing nothing short of garnishing your earned but unpaid wages.

Just my opinion.

[HHM]

Yep, that 25% in wages thing. If that is the ONLY asset, most trustees won't go after it, but if there are other assets (i.e. tax refund), then the trustees will then try to maximize what they can get by getting the non-exempt portion of wages due, or held in bank accounts (depending on the exemption scheme).

[Silver26]

From what I understand it's just the way this trustee does his thing. Were not expecting much of a tax return next year anyway so it's not a huge problem regardless. Personally I think it seems like a lot of extra work to get 5 or 600$, but I completely understand why he does it. Thanks for the help I'm glad to hear it shouldn't affect our discharge date.