Likelihood of trustee abandoning assets?

[mb10240]

I have a number of assets that will likely not be covered by the not so generous Louisiana exemptions that I'm having to use - mostly consumer electronics. For the most part, they are not very valuable (anywhere from $0-300, probably less than $1500 total) and might be pretty difficult to sell.

How likely is it that the trustee would abandon this property?

[redhunter]

The trustee will only take those assets if the cost (time and money) of collecting and selling those assets is significantly less than what he/she can collected on those assets. But you can never predict what an individual trustee will do.

In the early '90s I was hired by trustees to do forensic accounting and tax work on chapter 7 business cases. The trustees I worked with were very conservative as to whether they would pursue collecting and disposing of assets. If they couldn't sell the assets for more than it cost to sell them, they personally had to come up with the difference. As a result they only went after "sure things".

[tcreegan]

Hi mrbrown,

I seriously doubt the trustee is going to bother w/ some used electronics, where would they be able to sell them? I doubt you see many trustees on eBay or craigslist.....

Tom in Colo

[keptdigging]

Practice seems to vary from district to district.

What the Trustee really wants is cash. So the Trustee might try to see if he/she can get you to buy back the non-exempt assets (this seems especially common in a certain district in FL.) The right answer, generally, is to tell the TT to feel free to pick them up. Call the TTs bluff and they'll probably get abandoned.

Also there are expenses with just setting up and administering a bk estate and distributing to creditors. Here in CA, my attorney says she has seen TTs walk away from as much as $2,000 (cash) as not worth administering. I'm guessing that number is smaller in other jurisdictions. But as mentioned above, if it cost the TT more to administer the assets than they bring, the TT actually loses money out of their pocket.

[dspii]

Practice seems to vary from district to district.

What the Trustee really wants is cash. So the Trustee might try to see if he/she can get you to buy back the non-exempt assets (this seems especially common in a certain district in FL.) The right answer, generally, is to tell the TT to feel free to pick them up. Call the TTs bluff and they'll probably get abandoned.

Also there are expenses with just setting up and administering a bk estate and distributing to creditors. Here in CA, my attorney says she has seen TTs walk away from as much as $2,000 (cash) as not worth administering. I'm guessing that number is smaller in other jurisdictions. But as mentioned above, if it cost the TT more to administer the assets than they bring, the TT actually loses money out of their pocket.

And...the trustee typically gets paid first, so they have to be sure that after all expenses are, including their take, there is some left over for the creditors. I doesn't look good for the trustee to take $300 and leave $50 for the creditors after expenses, like lawyers and appraisers.

[tobee43]

I have a number of assets that will likely not be covered by the not so generous Louisiana exemptions that I'm having to use - mostly consumer electronics. For the most part, they are not very valuable (anywhere from $0-300, probably less than $1500 total) and might be pretty difficult to sell.

How likely is it that the trustee would abandon this property?

i agree with the previous PP's however, i fully believe it will depend on your trustee....while i just learned in my district it is NOT uncommon for the trustee to send someone out to your home to appraise your belongings...(i was shocked at the mere thought), however, it happens.

so i do believe it will depend on the trustee...really some may just let it pass on through, it's not worth the effort...while others are just "others"...and not really caring other than for the one dollar they may get for the creditor.

remember the trustee basically is representing the creditors and is NO friend of yours....however, in light of what you are listing as your assets one would hope that the trustee assigned to your case would just let it be.

wish you the best!