Schedule C

[dsuisse]

We are filing Pro Se. The Eastern District of Michigan requires a Schedule C be submitted for each joint debtor. How does one divide property such as real estate for each of the couple involved when both own the property jointly? We only need a small amount of exemption ($9000) which is less than the allowed. Should it go (on the Schedule C) for the husband or split with the wife? Also how should the Schedule C be labeled so the trustee knows which form is for which person. We have many hours of searching for this info and since it is Saturday (court not open) we thought maybe someone has run into this and could enlighten us.

[justbroke]

First, yes, I would put the names of the individual spouse in the space at the top of Schedule C indicating the debtor.

For the rest, this is when a lawyer comes in handy. How a property is titled is 99% of the issue. Whether you're in a community property state is another issue. (Assuming you are in Michigan and the property is in Michigan, then it's not a community property.) Lastly any prenuptial or antenuptial agreements may plan into this.

Now, you say that it's owned jointly. Is that a tenancy by the entireties (TBE) (and actually listed on the deed), or perhaps a tenancy in common (and listed on the deed)? I would look at the deed and also look to the Statutes for your state (Michigan) to determine first, if it's marital property, and second, whether it's "automatically" TBE or whether it would need to be. I'm not an attorney but Michigan law seems to indicate that marital property is a tenancy in common with full right of survivorship. I don't know the impact of that on your case.

Likely you'd list on each schedule "C" that it's jointly owned real property and you'd both claim the Statutory exemption for Michigan. If you're using Michigan 600.5451, then it's $34,

Michigan 600.5451 (History: Add. 2004, Act 575, Imd. Eff. Jan. 3, 2005 )

(n) The interest of the debtor, the codebtor, if any, and the debtor's dependents, not to exceed $30,000.00 in value or, if the debtor or a dependent of the debtor at the time of the filing of the bankruptcy petition is 65 years of age or older or disabled, not to exceed $45,000.00 in value, in a homestead.

(o) Property described in section 1 of 1927 PA 212, MCL 557.151, or real property, held jointly by a husband and wife as a tenancy by the entirety, except that this exemption does not apply with regard to a claim based on a joint debt of the husband and wife.

(Also note, that it appears that in December 2009, the statutory exemption was changed to $34,450. I'm unsure if you can double it, but you say you only need $9,000.)

[dsuisse]

Thanks, justbroke, for the reply. A little further clarification of our case: We are using the Federal exemptions so our homestead exemption is 20,000 plus which can be doubled because we are joint. Also Michigan is tenancy by the entirety. I am comfortable with the extent of our exemption allowances, my challenge is filling out the two Schedule C forms correctly. It is a local requirement for Eastern Michigan Court and we have not been able to research and find the proper format as I stated. And my concern at the top of the form where you insert re:debtor (refering to our specific case) on all other forms has both of our names because of the joint status. Therefore I am concerned that putting just one name at the top of each of the two forms would be incorrect in the eyes of the trustee. It's really not too much of a big deal today since I can contact the clerk on Monday, I just thought someone out there might have this experience in Michigan and would share it. Thanks again for your info, this site has helped us tremendously in preparing for our filing.

[justbroke]

Don't worry about the "eyes of the Trustee"... worry about procedure. You could put "In Re Jone and Jane Doe (John Doe)" at the top if you're concerned. The main reason for the information at the top is "just" captioning.

[tcreegan]

Hi dsuisse,

What an odd local BK rule.....

LBR 1007-1(g) states, “Each debtor in a joint case shall file a separate schedule C.” Any filing that clearly identifies separate claims of exemption for the husband and wife will be accepted under this local rule.

I would wait for instructions from the court clerk.....

Your LBR rule on captions is not very picky at all, use the heading of the national form, I would use "Jane Doe in the joint case of John & Jane Doe"

Sorry I can't be of more help, I thought by posting the rule one of the gurus would be able to interpret it....

Tom in Colo

[dsuisse]

Talked to the court clerk today. I was told that guidelines to filling out these Schedule C's was legal advice and they couldn't help me. Their suggestion was "Get a lawyer or just do the best I can." So I decided to contact the trustee indicated on my filing form and the listed telephone number was no longer a good number. I recontacted the court clerk and they verified that the number for the trustee assigned to this case is the one that I have - sorry they can't help me! The Trustee is 2 1/2 hours away so I am not going to his office. As a result I just filled them out the way it made the most sense to me and hope the trustee is understanding.

[tcreegan]

Hi dsuisse,

Probably closing the door after the horse escaped, but when you talk to the court clerk always preface your question with "I have a procedural question, how..."

Tom in Colo

[justbroke]

The Trustee is 2 1/2 hours away so I am not going to his office. As a result I just filled them out the way it made the most sense to me and hope the trustee is understanding.

You are worrying TOO much about this! Worse thing that happens is that you get what they call a "deficiency" notice and it will state exactly what the problem is, and then you have 14 or so days to correct the deficiency. I think you're overthinking this. Follow the directions I provided above, and there should be no issues.

[dsuisse]

No doubt that you are right, justbroke. After a few days of researching and reading other's input I am totally comfortable with this issue. Everyone's calming suggestions really serve a good purpose on this forum. Just remember - in the beginning there is little knowledge of the importance (or lack thereof) of any particular part of filing pro se and one who is trying to do one's best at it might over react to some of it. Finally I would like to again thank you for your feedback. Please keep up the support for everyone.

[justbroke]

I know how you feel and can empathize. I have sat right where you are now... thinking too much! It's in my nature anyhow. However, if I can relieve even a little stress from my fellow pro se filers... I will do whatever it takes.

Part of the problem of being new to all this, is just the flood of rather good information and all the well-meaning suggestions that come along. That itself can make one more concerned about what to do.