Ch 7 discharged, but still unfinished business...

[JenniG]

We received a letter saying that we are granted a discharge, as of 1/25/2011. The letter did not come with a list of discharged debt/creditors. Shouldn't we have received a list?

Also, the matter of our pre-mortgage debt has not been settled. The Trustee denied our house exemption because of that measly debt, and we have been trying to get the attorney to let us know what is happening with this, but he always says the Trustee hasn't returned his calls. Can we contact the Trustee ourselves? The attorney said he doesn't want us to, but is he isn't getting us any answers...

And, finally... the Trustee said he wanted us to send our tax refund info to him. Will he only take enough to pay that pre-mortgage debt? If we file and claim all of the credits we are allowed, our refund could be nearly $8,000. I would hate to see all of that go to the bankruptcy court. Are we able to spend a portion of the refund before it is received? We could use some of it as a down payment on a car, which we desperately need.

Thank you... I know that if anyone can answer these questions, it is the very wise and helpful folks on this forum!

[AngelinaCatHub]

We received a letter saying that we are granted a discharge, as of 1/25/2011. The letter did not come with a list of discharged debt/creditors. Shouldn't we have received a list? NO. All non-secured debt that you listed will be discharged. If you missed one that too would be discharged but you could amend your documents, depending on what it is. Usually it is no problem.

Also, the matter of our pre-mortgage debt has not been settled. The Trustee denied our house exemption because of that measly debt, and we have been trying to get the attorney to let us know what is happening with this, but he always says the Trustee hasn't returned his calls. Can we contact the Trustee ourselves? The attorney said he doesn't want us to, but is he isn't getting us any answers... Yes, you are discharged and his job for the most part is over. If you cannot get satisfaction you can call the Trustee explaining to him that you have not gotten an answer in a reasonable time. It will pizz your lawyer as it may reflect on him. Without more info, I don't know what you are talking about pre-mortgage debt and all. Any debt incurred that is non secured is discharged as long as it was before your filing date.

And, finally... the Trustee said he wanted us to send our tax refund info to him. Will he only take enough to pay that pre-mortgage debt? If we file and claim all of the credits we are allowed, our refund could be nearly $8,000. I would hate to see all of that go to the bankruptcy court. Are we able to spend a portion of the refund before it is received? We could use some of it as a down payment on a car, which we desperately need. Be careful on doing this. You are apparently an asset case??? You can be discharged but not closed until assets are disbursed and expenses as well.

Thank you... I know that if anyone can answer these questions, it is the very wise and helpful folks on this forum!

I hope I helped a bit as an asset case person. Do not hide a thing including your tax return. The Trustee can reopen your case as there are things out there not handled yet. Usually a close is a clerical thing. We did not close for a long time as we had to pay back preferential payments and purchase our nonexempt stuff back. Once distributed it was then closed. 'Hub

BTW, if you didn't get it, here is your Dance of Victory for surviving bk.

Grats to you:

http://www.youtube.com/watch?v=f9aA_fba_To

[JenniG]

I hope I helped a bit as an asset case person. Do not hide a thing including your tax return. The Trustee can reopen your case as there are things out there not handled yet. Usually a close is a clerical thing. We did not close for a long time as we had to pay back preferential payments and purchase our nonexempt stuff back. Once distributed it was then closed. 'Hub

BTW, if you didn't get it, here is your Dance of Victory for surviving bk.

Thank you!!!! It does feel good to atleast know we made it this far. I just wish the attorney would tell us exactly what will still be expected before this whole thing is really done. Am I legally required to claim all of the credits we qualify for when doing our tax return? If so, then that is just what I'll have to do... but I would feel better knowing that if we can't have all that extra cash, either will the Trustee.

[JenniG]

AngelinaCatHub,
I just realized that there was more to your post! The pre-mortgage debt I was referring to was about $3,500 in medical bills/student loans that we had prior to purchasing our house in 2007. (The student loan is not even in repayment status yet, as I am still taking college courses.) We were told by the attorney that our home was exempt, then the Trustee objected because of that debt. So... we have been waiting months to find out what we have to pay in order to keep our house. I will take your advice and call the Trustee. After all, it is our situation and our money, right? If the attorney doesn't like it, then he should have done his job.

[SunshineGal]

Hi Jenni,

Do you have a pacer account? If not, there is a sticky on the forum with how to set one up. The trustee can't really deny a homestead exemption, what they can do is object to the exemption, at which time it goes before a judge. Look on Pacer and find out what has been filed by the trustee, he/she had 30 days from the date of your 341 to file an objection. (You want the docket or history report and are specifically looking for what the trustee filed after the 341)

If it were me, I would NOT call the trustee, rather, I would demand the answers from your attorney. As for the tax return, that depends on the exemptions in your state and if your attorney has exempted it. Otherwise, the portion you were entitled to as of the date of the petition could be taken as part of your estate.

SG

[daylate]

What is pre-mortgage debt? Never heard that before.

[SunshineGal]

Iowa has some crazy law where the homestead exemption doesn't apply to debts before the purchase of the home.

[daylate]

Thanks. Just when I think that these situations can't get even more nutty (nuttier?) I find stuff like this. Good luck JenniG