Need help right away!! Notice of hearing and motion filed for turnover of property!

[npvgreg]

I filed a joint chapter 7 in St paul Minneosta on dec 31st and here is where were are at now. Need advice!

We have an older car that is in my wifes name. It doesn't run and doesnt have an engine or doors its a 1936 ford. The trustee asked us to bring a picture to the 341 so we did and gave the picture to him. He asked about our tax return and we understood we would likley have to turn that over to him.

On the 16th of Feb they sent us a letter stating that we owed wages due of half of my paycheck from dec 16-30 about 1400.00, also said we would need to turn over our return. They said they were requesting 2500 to buy back the old car.

On the 17th our atty sent a letter asking them to explain why we owed part of our income when it would normally be exempt. Also asked if they could show us how they dermined the value of the old car? Seemed innocent. Now today! Motion filed! They said we had till the 21st to make them an offer on the buyback on the car. Its the 19th and they are saying we are refusing to turn over non exempt assets?? Our attorney just asked a few questions!

What happens now? If we pay them what they are asking will this end all this? We are sooo stressed out! Can we still buy back the car? This was a dying gift from my wifes father, that we were going to fix up someday. Help!

[CoBelle]

EGAD.....sounds like MY trustee (well, actually my trustees attorney).
Of course you should fight this...it seems as if your attonrey and the trustee aren't friendly-like...that always helps.
Your attonrey should file an answer and say that you don'thave any money to buy back the car and she can have it.
I'd probably take afew things off the car IYKWIM so it looks as bad as can be. Since your lawyer has to file anyway, argue against the wages and the tax refund too...why not? what haveyou to lose?
Don't worry....and good luck

[AngelinaCat]

I filed a joint chapter 7 in St paul Minneosta on dec 31st and here is where were are at now. Need advice!

We have an older car that is in my wifes name. It doesn't run and doesnt have an engine or doors its a 1936 ford. The trustee asked us to bring a picture to the 341 so we did and gave the picture to him. He asked about our tax return and we understood we would likley have to turn that over to him.

On the 16th of Feb they sent us a letter stating that we owed wages due of half of my paycheck from dec 16-30 about 1400.00, also said we would need to turn over our return. They said they were requesting 2500 to buy back the old car.

On the 17th our atty sent a letter asking them to explain why we owed part of our income when it would normally be exempt. Also asked if they could show us how they dermined the value of the old car? Seemed innocent. Now today! Motion filed! They said we had till the 21st to make them an offer on the buyback on the car. Its the 19th and they are saying we are refusing to turn over non exempt assets?? Our attorney just asked a few questions!

What happens now? If we pay them what they are asking will this end all this? We are sooo stressed out! Can we still buy back the car? This was a dying gift from my wifes father, that we were going to fix up someday. Help!

Excuse me, you filed Dec 31, 2010, and this is only NOW being questioned? Today is Feb 19, 2011. Trust me, I understand filing at the end of the year (12/28/2007 341 Feb 7, 2008) We had to explain my 1968 Chevy Impala, on blocks for four years with no brakes, at that time. What's with this?

[discouraged]

I'm wondering if it's in part due to the vintage car show every year (can't think of what the official name is) and some of those cars are worth a ton of money. Also, because it is such a big thing here, they probably realize you will be able to find the parts and restore the car.

Work with your lawyer on this, but it does sound like they want you to pay for it.

[kjg812]

Just taking a quick look at hemmings online classifieds a 36 ford with no motor or transmission is running $7500+ and a fully restored one is 30k+. I would have to say 2500 is resaonable but absolutely understand not wanting to have to pay it.

[AngelinaCat]

This sounds 'fishy' to me because my 68 Impala was also a 'vintage' car.

At least it had it's engine, and was driven into the garage with the bad brakes before it was parked on blocks, as we discovered that 'Hub had prostate cancer.

That was 2004. We filed the end of 2007. That car had not moved in the meantime, nor had we touched it. It had green mold on it, which we truthfully said at our 341.

[AngelinaCatHub]

About the car. When you filed, you agreed by choice that all that you own belongs to the Trustee. As Mrs. C said, we had a cherry Chev. It locked brakes up. I parked it and then got sick and it set for four years, never to run, it was green and moldy (FL) and the car was blue. On 341, Trustee asked about it. We told him the truth. It does not run, it needs brakes, is moldy, and dirty and he could have it. He never looked or asked but abandoned the car. He did state it could be junk or a restored treasure and that's what we told him and it was true.

Once I regained my health, I took a month (would you believe) to change all the brake parts out, then attempted to draw the gasoline out of the tank to put fresh in. Could not suck the line hard enough so I used Mrs. junk vacuum cleaner. BOY did it flood the place with gas and with a running brush motor and I ran like hell pulling the plug on the way out of the garage. Almost became a non-member of the gene pool. Anyway, after a day and no explosion we got it started, found after failing a turn in a stall and almost getting killed, rebuilt the carb, new batt, and a real good cleaning. Sold it for twice what we paid for it. Nothing was illegal.

My opinion, take the crappiest pictures of that junk car and send it to him with a note stating that you kept it for no real reason except getting to it one day, and you have no time to do that and he can have it. LET HIM HAVE IT. Call his bluff. He will either abandon it, or you lost the bet. In all, you are still better off as it will cost you a lot to make it a show car and where are you now???? IN Bankruptcy! Give it up. 'Hub

[npvgreg]

I guess we were caught off guard with this filing. The taxes I understand, the income really don't get it, but would be willing to pay it. The car really has little monetary value, but has a ton of sentimental value. We hope to hold onto it. The trustee did say we could make an offer by the 21st to keep it, they must have been upset with the attorney and filed the motion.

My question is this...If we were to say just pay what they are asking and ask them if we can still make an offer on the car, do you think they would go for it? Is it to late?

I'd like to call the trustee myself and just get this over with. Tell them we never were trying to avoid anything and just get this resolved. I can borrow the money from family. I don't think my attorney really has a plan and am thinking of just handling this myself ? Any suggestions from my friends here? I

[AngelinaCat]

My Friend, we really need a little bit more information about your background.

Your almost very first post with us, has you in the middle of a swamp with alligators snapping all about your hindy-end, if you understand what I mean.

I will say, that if you are represented by an attorney, the trustee's office will not deal with you, and will insist that you go through your attorney.

If you are having issues with your attorney, that is another matter, and we need to know this.

Thanks

[npvgreg]

Well our attorney has done an ok job. Part of the problem is when we filed he listed the old car as 36 ford not running-no value on schedule c. I think the trustee had a problem with this and has set out to prove a point. I provided a picture and at the 341 and the trustee said he will have someone look at it that knows about cars. We Filed chap 7 no asset. Then came the letter with the 3 demands, tax return, wages as stated above and the value of the old car at 2500. They demanded the wages immediately and the tax return when it came. Then they said that they would allow us to buy back the old car by the 21st, if they didnt get an offer they would object to our exemptions. They said we listed it as an exemption but claimed it didnt have any value. Then he sent them an email asking them more or less to show him why we owed these things. The next day the trustees office filed the motion saying he was not cooperating in turning over non exempt assets. I am just frustrated and ready to do what ever I need to get this over with. Hope this helps you to see how we got here.

[AngelinaCatHub]

Well our attorney has done an ok job. Part of the problem is when we filed he listed the old car as 36 ford not running-no value on schedule c. I think the trustee had a problem with this and has set out to prove a point. I provided a picture and at the 341 and the trustee said he will have someone look at it that knows about cars. We Filed chap 7 no asset. Then came the letter with the 3 demands, tax return, wages as stated above and the value of the old car at 2500. They demanded the wages immediately and the tax return when it came. Then they said that they would allow us to buy back the old car by the 21st, if they didnt get an offer they would object to our exemptions. They said we listed it as an exemption but claimed it didnt have any value. Then he sent them an email asking them more or less to show him why we owed these things. The next day the trustees office filed the motion saying he was not cooperating in turning over non exempt assets. I am just frustrated and ready to do what ever I need to get this over with. Hope this helps you to see how we got here.

It seems this car thing is bothering you the most. IMHO, call the bluff. Take the radiator cap for the sentimentality for what it's worth. You also can be at the sale of the car if you lose your bet that it will be abandoned. Then, buy it. Or, Offer a very low price like $800, and you can still bid later. You didn't marry that thing and it will cost you two arms and a leg to rebuild it. It is worthless except to a wealthy car nut. We sold a 29 McCormack tractor with sentimentality since we could not afford to restore it. We have visiting rights though when it is finished. It would do you better to see it restored and even give the buyer it's history. He would be pleased to let you visit it. 'Hub

[shark66]

. You didn't marry that thing and it will cost you two arms and a leg to rebuild it. 'Hub

Having spent a good part of my youth restoring Classic Cars, I'm with the Hub here, 1000%...

That market has taken quite a dive compared to its heyday in the 90s, and I'd offer them $500 for the vehicle. You can't go by what it's worth to you - it's priceless. To most people it's worth its weight in scrap metal. To a very select few, it's worth something, but likely not that much at all. Hemmings is a good read, but generally overpriced IMHO. Look at the whole thing as a business decision just for five minutes while you're instructing the attorney on how much to offer and you'll be much better off.

My $0.02 only...

Good luck.

[tcreegan]

Hi all, Hi npvgreg,

Just a thought here...if you have room to exempt it, file an amended schedule B & C ?

Another thought...going for the record here...seen other people work out a payment plan w/ trustees

But I like the thought ACH and Shark thought....call the bluff. You're in Minnesota right? No auction going to happen until May at the earliest. Trustee might not want to bother w/ getting it towed, storage, for an uncertain auction price. The lowball idea is good too, the trustee might go for fast cash now vs hassle + uncertain price later.

Whatever happens, hope it comes out in your favor!

Tom in Colo

[discouraged]

I hope it turns out too, but, as I said, the old cars are such a big deal here. It could very well be that the 'person who knows these cars' could be searching for one like yours and have the funds to fix it. My ex father in law was way into this and practically had a gang of older car buffs hanging around and all they did was talk parts and restore these cars; just for that one week a year when they are trotted out to be admired.

It never has made sense to me. I admit they are nice to see but as far as I'm concerned they clog the streets and caused a lot of congestion when I was trying to get to work! (Back when I had a job that is)