OMG, is the trustee coming after my condo?

[BKDebby]

I can't even breathe right now. I just checked PACER and found this new update:
Trustee's Notice of Possible Assets and Notice of Abandonment

Does this mean she's coming after my condo? I am a no asset, chapter 7. I thought I had a $15K exemption in Indiana. I still owe $62K and Zillow says it's worth $75 as of today. When I filed in September, it said it was worth $66,500.

This has been the first update since my 341 on 11/10/10.

[despritfreya]

Stop and relax.

1. The Notice of Assets could be as simple as an expectation of a tax refund
2. The Notice of Abandonment could be an Abandonment of everything but the tax refund.

Pull up the notice (especially the abandonment as the asset one is probably generic) and tell us what they actually say.

In the morning you can call your attorney. If you do not have one, you can call the Trustee.

Des.

[tcreegan]

Hi BKDebby,

Hope this is just routine....

Don't know if will help, but zillow has a reputation for running high on values, seen several posts where an appraiser came up with a much lower number.

Hang in there, let us know how it turns out!

Tom in Colo

[BKDebby]

It took me awhile but I found this:
NOTICE OF POSSIBLE ASSETS AND NOTICE OF ABANDONMENT OF PROPERTY
XXX, in her capacity as the Chapter 7 Trustee of this bankruptcy
proceeding, hereby notifies the Court that there are possible assets in this case, administration of
which may result in a dividend to creditors. The Clerk’s office is requested to issue a Notice of
Last Day To File Claims pursuant to Bankruptcy Rule 3002(c)(5).
NOTICE IS HEREBY GIVEN that all scheduled assets will be abandoned from the estate
EXCEPT Debtor’s non-exempt interest in FY 2010 federal and state tax refunds and 25% of wages
due and owing on petition date.
Date: November 30, 2010 /s/ xxx
xxx, Chapter 7 Trustee

And then on Page 2 I saw "OA" which means 554(a) Abandon by my car and condo and personal effects.
25% of Wages due to debtor
State Tax Refund
Federal Tax Refund

What does the 25% of wages due to debtor mean? that I owe 25% of my weekly pay to someone?

[daylate]

I think that is what it means since in a lot of states you can exempt 75%...but at most this only applies to pay you have already earned but not received-not every one of your paychecks...say you make 500 a week-its been two weeks since you got paid on the day you filed-you would not be able to keep $250-I'm not sure if its net or gross-250 would be worse case

[BKDebby]

Thanks, I'm feeling a little better now....my blood pressure went sky-high when I first checked PACER tonight. I was at my attorney's office yesterday signing my Toyota reaffirmation papers and the secretary told me I had the toughest Trustee in my District.

[dumpinmydebt]

Abandon is a good thing. It means they do not want it. They are abandoning that asset.

They want 25% of the wages you had and that were due to you as of the filing date. They also want your Federal and State tax refunds.

[BKDebby]

Whew! 25% of 1 week's pay isn't too bad then. I will absolutely hate giving that woman any of my tax refunds, since I was wanting to start my emergency savings account with that money. Someone told me that the Trustee gets a % of whatever she collects, I wonder if that's true.

[free2breathe]

Also, she won't get all of your tax refund, just a percentage based on your filing date. For those of us who filed later in the year, it hurts a little worse, but at least it isn't all. We are facing the same thing as you. 25% of wages earned but not paid and about 75% of our tax refund. I can live with that. And yes, the trustee does get a percentage of the assets.
25% of the first $5,000;
10% of the next $45,000;
5% of the next $950,000; and
3% of the balance.

[BKDebby]

Thank you, Free2Breath. At least she won't get all of it.

[btbeme]

FYI - grabbing a portion of the tax refund due is a way of telling you that your actual take-home income is higher than you think. You should consider adjusting your witholding so your paychecks are bigger and your refund is smaller. Just some advice from me to you - part of your new financial future should be to pay YOURSELF first (dump that extra into a savings account on the 1st of each month) rather than loaning it to the government interest-free in the form of higher witholdings (and a higher refund). Keep what is yours and do wise things with it.

[free2breathe]

Thank you, Free2Breath. At least she won't get all of it.

That was my thought exactly

[despritfreya]

It took me awhile but I found this: NOTICE OF POSSIBLE ASSETS AND NOTICE OF ABANDONMENT OF PROPERTY. . .NOTICE IS HEREBY GIVEN that all scheduled assets will be abandoned from the estate EXCEPT Debtor’s non-exempt interest in FY 2010 federal and state tax refunds and 25% of wages due and owing on petition date.

See. . . just as I said, no need to panic. Now you can relax

Des.

[BKDebby]

Update: Another 4 pages added to PACER today, but I think it says basically the same thing, but it also lists all my creditors on the last page if they want to get a piece of the pie they have to file a claim to it by March 2011.

I'm wondering why Chase Bank (my mortgage I'm reaffirming) and Toyota (I'm reaffirming my new car also) would be listed to get their piece of the pie also, when I'm reaffirming.

btbeme: I did change my Federal W/H back in September from 0 to 3 (I'm single w/no kids) but I probably changed it too late.

[despritfreya]

Chase and Toyota (secured creditors) are listed because the notice go to all creditors and interested parties on the master mailing list. If either files a claim the Trustee will just ignore the claim as secured creditors do not share in the pie.

Des.