What can the trustee do after discharge?

[brtarga]

I checked Pacer, and was discharged today - 62 days after 341, not bad!! My questions is that after the 341, the trustee changed us to an asset case due to the fact that we may get a tax return and that one of our vehicles was only titled to one spouse so that spouse was over the exemptions by approx $600. My wonderful (being very sarcastic) attorney also forgot to file on Wed. and instead chose to file on our payday, thus showing $2600 in our checking acct. rather than $15. We paid the trustee the $600 we were over, and then he came back again and asked about earned wages, which were also provided and amount to approx. $2000. We never heard a thing about the earned wages, and are now wondering if he can still ask for them now that we have been discharged but not closed, or can I finally quit sweating this out?

[despritfreya]

The Discharge ends your issues with your creditors. It does not end your issues with the Trustee. If the Trustee is going to collect $$ from you, eventually he will come calling.

Des.

[brtarga]

Thanks, although not the answer I wanted to hear!

[justbroke]

Of course it's the answer you want to hear! You want to know that your debt are discharged and creditors can't bother you. The fact that the Trustee wants a potential refund from you, or even $2,000 from you... for the benefit of having discharged thousands if not hundreds of thousands of dollars of debt... should be music to your ears.

I don't know one Chapter 13 debtor who is currently in plan, who wouldn't give up their next tax refund, for the opportunity to receive a discharge NOW!

You should be very happy! (I do understand that your attorney messed up if you ask me, by allowing your petition to be filed with that much non-exempt money in the bank.)

[free2breathe]

justbroke took the words right out of my mouth. I hated the idea that we'd have to give up anything, because we had hit rock bottom and have about $15 DMI after all is paid at the end of the month. But, I had to look at the other side of the street, where the grass was greener. We just received our discharge, and if we have to sign over our refund to Mr. Trustee along with the 25% of our earned/not paid wages, and the balance of our bank account on the date of filing (which was nowhere near $2600, but hurt just the same) to discharge all that unsecured debt, then I am a happy camper.

[tcreegan]

Hello brtarga, and welcome !

and that one of our vehicles was only titled to one spouse so that spouse was over the exemptions by approx $600.

....this doesn't pass the smell test....you filed jointly w/ your spouse, right? The way I have always seen it done was a doubled exemption amount for both, together, not two separate exemptions. What would happen if there were 3 cars all in both names? Get Solomon and cut the third car in half with a torch?!

Was this something your attorney did or the trustee?

It has been a rocky (and expensive) road for you, I hope it smooths out and you are finally free!

Tom in Colo

[brtarga]

Thanks for all the answers and comments - I'm just like everyone else and want it all OVER.

Tom: This is what my attoney told me the the trustee decided about the car, and while we were originally a no asset, it is why we were changed to an asset. We used Federal exemptions if it makes any difference.

Another question I have, is freetobreathe mentioned that the Trustee can only come after 25% of the wages earned. Is this the case since I used Federal exemptions? I specifically asked my lawyer this, and he said that is not how it worked when you file using the Federal exemption, that the trustee can take all of it.

Another questions I have is that while we check reaffirm on both our vehicles, we were never given any reaffirmation papers to sign. One vehicle has a loan with a credit union (loan balance 15,000), the other with Toyota Financial (loan balance 7,000). Is it possible that they will come and take these vehicles? Both are even. IFso, do they give you any notice? I asked my lawyer this and he said no just keep paying, which I have done, but I am terrified of waking up some morning and my vehicles being gone.

Thanks again. I have been lurking here a long time, and it's actually nice posting!

[JEM]

Thanks for all the answers and comments - I'm just like everyone else and want it all OVER.

Tom: This is what my attoney told me the the trustee decided about the car, and while we were originally a no asset, it is why we were changed to an asset. We used Federal exemptions if it makes any difference.

Another question I have, is freetobreathe mentioned that the Trustee can only come after 25% of the wages earned. Is this the case since I used Federal exemptions? I specifically asked my lawyer this, and he said that is not how it worked when you file using the Federal exemption, that the trustee can take all of it.

Another questions I have is that while we check reaffirm on both our vehicles, we were never given any reaffirmation papers to sign. One vehicle has a loan with a credit union (loan balance 15,000), the other with Toyota Financial (loan balance 7,000). Is it possible that they will come and take these vehicles? Both are even. IFso, do they give you any notice? I asked my lawyer this and he said no just keep paying, which I have done, but I am terrified of waking up some morning and my vehicles being gone.

Thanks again. I have been lurking here a long time, and it's actually nice posting!

Curious about this as well since we will be using Federal Exemptions.

Is it EARNED but UNPAID earnings?

[tcreegan]

Hi again btarga, Hi Jem

Yup, earned b4 filing date but paid after file date. Under federal I don't see any exemption for wages, so the trustee gets it all...

...unless...you use the federal wildcard of ~1K or ~10K of unused homestead exemption to cover it.

The car situation should be ~3225 x 2 = ~6450 Add up the equity in all your cars. The trustee can go after anything over ~6450 ....

...unless...you guessed it,...use the federal wildcard of ~1K or ~10K of unused homestead exemption to cover it.

The solution to the no reaffirmation 'problem' is to call the lenders and let them know you intend to keep making payments. Remember they have restrictions on contacting you, so you need to contact them.

Hang in there all,

Tom in Colo

[JEM]

Hi again btarga, Hi Jem

Yup, earned b4 filing date but paid after file date. Under federal I don't see any exemption for wages, so the trustee gets it all...

...unless...you use the federal wildcard of ~1K or ~10K of unused homestead exemption to cover it.

The car situation should be ~3225 x 2 = ~6450 Add up the equity in all your cars. The trustee can go after anything over ~6450 ....

...unless...you guessed it,...use the federal wildcard of ~1K or ~10K of unused homestead exemption to cover it.

The solution to the no reaffirmation 'problem' is to call the lenders and let them know you intend to keep making payments. Remember they have restrictions on contacting you, so you need to contact them.

Hang in there all,

Tom in Colo

Well, once again, I'm happy we don't have any equity, because we'll be using that to make sure dh's wages don't get nabbed. LOL. So for instance, say we file on a Monday--dh's work week is Friday-Thurs., we'd "owe" the trustee Friday, Saturday, Sunday, Monday (or would Monday not count since we're filing that day? Hypothetically.)

[tcreegan]

If you are filing in TX Jem, I think wages are exempt per TX prop code § 42.001(b)(1)

Also doubt the trustee would be interested in a couple days pay....

...keep a days wage for a days honest labor, right?

[justbroke]

If you are filing in TX Jem, I think wages are exempt per TX prop code § 42.001(b)(1)

Be very careful. There are cases in Texas where "accumulated" and "prior" wages are found to be property of the Bankruptcy Estate and subject to seizure and distribution by the Trustee to unsecured creditors.

See Exempt Property under Texas Law where the precedence is that "current wages" are wages owed to an employee. Once the wages have been paid to the employee, they are not "current wages" for purposes of section 42.001 and they are no longer exempt

Additionally a Texas court found that earnings of a consultant are not wages, but accounts receivables (A/R) and subject to the Trustee's wrath. There are some workarounds to protect up to 75% of these types of earnings by declaring them commissions, but that's another can of worms.

Suffice it to say, this person's attorney messed up, big time. I might be inclined to have the attorney cover it under errors & omissions.

[tcreegan]

Hi all, Hi justbroke,

Always good to differentiate between "wages"/"income" and "cash in the bank" ...big difference there!

Of course we don't need to worry about JEM, her hubby gets paid weekly and they are filing in the middle of the week. Big whoop....

Tom in Colo

...and as a public service announcement, someone posted that the trustee saw unused vacation days on the paystub and claimed them as unpaid wages for the estate.

[justbroke]

..and as a public service announcement, someone posted that the trustee saw unused vacation days on the paystub and claimed them as unpaid wages for the estate.

Now the Texas Statute certainly protects that since it is "unpaid". I love how Trustee like to poke at people to see if they'll crumble.

[JEM]

Is it always the safest bet to exempt everything you can, just to be sure? As I said above, we have plenty of room with the unused homestead and the wildcard, so would it make sense to just cover our rears and exempt wages for the few days?