My husband filed for chapter 7 in June, 2010. I have several questions.
First question- we received a notice for hearing for objection to debtor's claim of exemption. Obviously the trustee is objecting to our exemptions but we do not know what that would be and our attorney says he will not know what the objection is until our hearing. Can anyone shed light on this? We have our home which we have reaffirmed the lien and plan to keep and our vehicles on loan which we hoped to keep also. The house appraised 3 years ago for $185K, there is a $140 mortgage lien and a $40 IRS tax lien on the home. Can they take our home even tho we have reaffirmed the lien with us still owing the mortgage and IRS?
Also, our vehicle lien is for $2400 but both vehicles together if sold would be app. $10K according to KBB value. Any thoughts as to which exemption they might be objecting to?
Second question, we received a letter from the attorney working on behalf of the trustee. We sold a wave runner in April..two months prior to the filing of bankruptcy. The sale was discussed and we were told that we could use the funds to catch up our mortgage payments (since we intended to reaffirm and keep the hosue) and personal bills but could not be used to pay preferred creditors etc. We used the money just as discussed with our attorney and paid our mortgage payments up to date and paid bills (debts not included in the bankruptcy) with the remainder amount. The WR was sold to a random individual with who we have no business or personal ties to and was sold for the selling price as listed in Boat Trader Magazines and online listings etc. (so it was sold for fair market value and was not sold to a family member, friend, or for any purpose of hiding or temporarily displacing property). The issue is that my husband did not list this in the financial statement schedule as having been sold. An oversight or a misunderstanding since the attorney knew of the sale and it was not related to the bankruptcy creditors.. and the attorney did not question it or even notice the failure to list. Now we received a letter from the attorney saying that the sale was labeled and marked in our bank statements (clearly not trying to hide the sale) and he had no record on the financial statement. He wanted to know who we sold it to and how we came to the value or sale price. The letter did not seem threatening or harsh. We honestly responded to our attorney's secretary all that I have just told you here. My question is, will this be able to be remedied by our attorney or are we screwed for having not listed it and our attorney not finding the error before submitting our paperwork? Clearly it is not anything that was done fraudulently or done in an attempt to hide anything. CAN ANYONE GIVE SOME LEGIT INPUT HERE? I am terrified they will consider it fraud and my husband will end up in jail or they will throw out his entire case altogether...... (God this whole experience is horrible and heartbreaking... )
First question- we received a notice for hearing for objection to debtor's claim of exemption. Obviously the trustee is objecting to our exemptions but we do not know what that would be and our attorney says he will not know what the objection is until our hearing. Can anyone shed light on this? We have our home which we have reaffirmed the lien and plan to keep and our vehicles on loan which we hoped to keep also. The house appraised 3 years ago for $185K, there is a $140 mortgage lien and a $40 IRS tax lien on the home. Can they take our home even tho we have reaffirmed the lien with us still owing the mortgage and IRS?
Also, our vehicle lien is for $2400 but both vehicles together if sold would be app. $10K according to KBB value. Any thoughts as to which exemption they might be objecting to?
Second question, we received a letter from the attorney working on behalf of the trustee. We sold a wave runner in April..two months prior to the filing of bankruptcy. The sale was discussed and we were told that we could use the funds to catch up our mortgage payments (since we intended to reaffirm and keep the hosue) and personal bills but could not be used to pay preferred creditors etc. We used the money just as discussed with our attorney and paid our mortgage payments up to date and paid bills (debts not included in the bankruptcy) with the remainder amount. The WR was sold to a random individual with who we have no business or personal ties to and was sold for the selling price as listed in Boat Trader Magazines and online listings etc. (so it was sold for fair market value and was not sold to a family member, friend, or for any purpose of hiding or temporarily displacing property). The issue is that my husband did not list this in the financial statement schedule as having been sold. An oversight or a misunderstanding since the attorney knew of the sale and it was not related to the bankruptcy creditors.. and the attorney did not question it or even notice the failure to list. Now we received a letter from the attorney saying that the sale was labeled and marked in our bank statements (clearly not trying to hide the sale) and he had no record on the financial statement. He wanted to know who we sold it to and how we came to the value or sale price. The letter did not seem threatening or harsh. We honestly responded to our attorney's secretary all that I have just told you here. My question is, will this be able to be remedied by our attorney or are we screwed for having not listed it and our attorney not finding the error before submitting our paperwork? Clearly it is not anything that was done fraudulently or done in an attempt to hide anything. CAN ANYONE GIVE SOME LEGIT INPUT HERE? I am terrified they will consider it fraud and my husband will end up in jail or they will throw out his entire case altogether...... (God this whole experience is horrible and heartbreaking... )
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