How exactly does a trustee "take" assets? Send someone to your house?

[murphsmom]

Not that we have many assets, old furniture, old appliances on their last leg, but there is a snowblower in the garage that we bought used for $600 three years ago, and a 40" flatscreen TV we bought three years ago for $900. I'm pretty sure hubby can exempt all assets, as there isn't much value there at all.

Just wondering, if a trustee does take an asset, do they come and get it, or are we responsible for taking it to them?

[KevFinnerty]

I'd like to know how this is supposed to work too.

I'm an asset case, although afaik the only asset I have is my house (with equity in it - which was going to be foreclosed on prior to my declaring bk).

My debts were discharged several months ago but there is still no word as to what assets the trustee wants (again I am assuming it is the house, everything else should be exempt), but I've heard nothing at all as to what is going to happen or when.

Strangely last month I got a letter from the bank/mortgage holder saying they were "notified" that my house was vacant and that they would have to take steps to secure it (like changing the locks) if I did not verify that the property was still being maintained. I told the bank it is not vacant (both on the phone and in a letter), yet today someone unknown went to one of my neighbors and told them "we've been notified that the house next door is vacant, can you confirm this" much to their surprise (I've not told my neighbors what I am going through, nor do I want to).

I don't know what the heck is going on. My lawyer said they have heard nothing from the trustee and that the bank cannot do anything anyway, that I should just sit tight and not worry about it. But I am worried...last thing I need is to find someone has broken into the house and changed the locks one day while I'm out.

Would like to hear from anyone else familiar with this kind of situation (asset case with house that went into foreclosure etc), how things work.

[free2breathe]

If I'm not mistaken, they hire a liquidator who would most likely come to get your assets, take them to their auction house, and proceed from there. That being said, very few "household furnishings" will ever be even viewed by a rep of the trustee. I think there is one Florida district where we've heard about the trustee sending out an assessor to look at the assets of some filers, but it's rare as a general rule.

Kev, trust your attorney and try not to worry. Sounds like left hand doesn't know what the right hand is doing at the bank. Call them again to confirm that you are indeed living in the house. Tell them that your neighbors have been getting visitors asking, and that you'd like them to know, in no uncertain terms, that you are indeed still residing in the house. Then, perhaps tell the neighbors to call the cops if they see anyone snooping around while you're out.

[KevFinnerty]

If I'm not mistaken, they hire a liquidator who would most likely come to get your assets, take them to their auction house, and proceed from there. That being said, very few "household furnishings" will ever be even viewed by a rep of the trustee. I think there is one Florida district where we've heard about the trustee sending out an assessor to look at the assets of some filers, but it's rare as a general rule.

Kev, trust your attorney and try not to worry. Sounds like left hand doesn't know what the right hand is doing at the bank. Call them again to confirm that you are indeed living in the house. Tell them that your neighbors have been getting visitors asking, and that you'd like them to know, in no uncertain terms, that you are indeed still residing in the house. Then, perhaps tell the neighbors to call the cops if they see anyone snooping around while you're out.

Thanks for replying.

Is there some sort of process, or notification, or anything, that the trustee does to actually officially declare what assets he will be taking??? I've received absolutely nothing so far.

Afaik the only thing I have of value above any of my exemptions is the house. How do they "take it"?????

But if they decide to take the refrigerator, or washing machine, or TV, or clothes, or whatever, despite them being exempt, I'd like to know about it before they show up with the truck to cart the stuff away. Won't they have to have some kind of court order, or hearing or something, before that happens ?? Or am I just going to have a sheriff show up at the door one morning saying "we are coming in to take all your stuff for auction"???

[free2breathe]

I don't know all the ins and outs, but I do know that they are regulated by codes and bankruptcy rules. I'm sure that they have to file motions to sell assets, and you would get that notice. I know our assets are very piddly, just a small amount of cash, and the trustee had to submit the payment breakdown to the court (along with the proposed amounts he claimed were due him), the court had to send notices to us and the creditors involved. We were given 14 days to object, etc. On the 15th day, the motion was approved and now the trustee will distribute our assets.

[KevFinnerty]

Thanks. Sorry you had to go through that.

If you feel like talking at all about that experience, let us know how that worked - for instance, for material things, did they go through your belongings and say something like "this jacket is worth $50, we want it hand it over", "this TV is worth $80", "those CDs are worth $300", etc? And could you then object by saying things like "no that TV is 25 years old and not worth 25 cents what are you talking about", or "that jacket even if it is worth $50 it falls within my exemptions" etc??

This sounds really scary.

[daylate]

when you listed your assets you place a value on them. The value should be "quick liquidation value"-in other words what would you get if you tried to sell it tomorrow. Trustees are not interested in your clothing, furniture,appliances etc. and in all my readings here except for in Florida i have never heard of anyone being sent out to search for assets and even if they were they aren't going to be cherry picking your "new" sweater or a 7 year old TV. They are looking for antiques,valuable art,jewelery, etc-things that can be worth lots of dollars. A trustee isn't going to have the time or inclination to gather up "stuff" for his weekly flea market.

As to how they get assets that have to be surrendered i think you need to have them delivered to the trustee or at least arrange for the trustee to have them picked up.

[frogger]

The trustee will file documentation compelling you to surrender the assets within 10 days. In our area, that means that if you don't make any arrangements with the trustee, they had best be at the trustee's office by the end of 10 days.

[KevFinnerty]

Thanks guys, but I still don't understand some things...

(1) Does the trustee provide a list of what assets to surrender? Or will it mean to surrender everything that I listed originally - (all of which were listed as the flea market prices, and would involve things like clothes, tv, washing machine, refrigerator etc - nothing of big value, everything BELOW the amounts I was entitled to exempt) - many of which I have no way to transport to his "office" in the first place (a refrigerator for example).

(2) Afaik, the only asset I have of value is my house. How do I "deliver" that to him??

[tobee43]

you should also have an opportunity to be able to buy back your assets. usually a debtor is examined under oath concerning his assets and debts. ... your attorney will negotiate the buy-back for you, if possible.

in the state of florida where we filed it's like this:

Non-Exempt Property

"Any property which is not exempt under Florida law is included in the bankruptcy estate. The Chapter 7 Trustee may take and sell all non-exempt property and distribute the proceeds to the unsecured creditors. You will have the opportunity to keep your non-exempt property by entering into a "buy-back" agreement with the Trustee. If you execute a buy-back agreement with the Trustee, you will make either a lump sum payment to the Trustee or make monthly installment payments over a period of several months."

do you have a ton of equity in your house, most people don't. so if it's underwater the trustee may just pass.

[KevFinnerty]

Kev, trust your attorney and try not to worry. Sounds like left hand doesn't know what the right hand is doing at the bank. Call them again to confirm that you are indeed living in the house. Tell them that your neighbors have been getting visitors asking, and that you'd like them to know, in no uncertain terms, that you are indeed still residing in the house. Then, perhaps tell the neighbors to call the cops if they see anyone snooping around while you're out.

I called the bank - things are getting weirder (for me). They verified that yes, it was someone associated with the bank that went to my neighbors and asked if the house was vacant etc. I told the bank again that I am still living here, and have no intent to leave until I have to. They said that they have to do "home inspections" every 30 days, involving checking on the house and verifying occupancy which includes speaking to neighbors and asking if the house is vacant or not, because of some kind of regulation that has to do with "Freddie Mac", who supposedly owns my mortgage instead of the bank.

Evidently, regardless of what I tell them (that I am still living here), they will be sending someone out every 30 days to snoop around, and talk to the neighbors as well. I asked that they not speak with my neighbors (my neighbor last night was kind of freaked out and suggested that I call the police - or that he would do it if it happened when he was home) but it seems that the bank will be doing this anyway, because they have to due to Freddie Mac (??). I hope nothing bad happens because of this (a neighbor calling the police next month), but I am not going to go around now and speak to all my neighbors and tell them of my strife and what is going on and ask them to not freak out if someone is snooping around...nor do I even WANT them to know what is going on.

And in addition, to amp up the weirdness, all this time I've been waiting for the trustee to do something, assuming he was "taking/selling" the house at some point rather than the bank foreclosing, yet the bank told me today that they have no knowledge of the trustee being involved - that my bk was "closed" - and that they would be foreclosing at some point, because they were granted a relief from the stay!!! Yet that was news to me (the only notification I've received is that they filed for relief, not that relief was granted, but I guess that is no surprise), and checking pacer my bk case has not been updated since my debts were discharged 3 months ago - there is no indication of anything being "closed" or anything like that.

This all makes me wonder if perhaps my case has been "closed" though - that the trustee decided not to take/sell my house???? How do you know if your bk case has been "closed"?? Wouldn't that be in pacer??? Wouldn't my lawyer (or me) be notified??? We've heard nothing...Sorry my head is spinning, I'm probably rambling.

[KevFinnerty]

you should also have an opportunity to be able to buy back your assets. usually a debtor is examined under oath concerning his assets and debts. ... your attorney will negotiate the buy-back for you, if possible.

in the state of florida where we filed it's like this:

Non-Exempt Property

"Any property which is not exempt under Florida law is included in the bankruptcy estate. The Chapter 7 Trustee may take and sell all non-exempt property and distribute the proceeds to the unsecured creditors. You will have the opportunity to keep your non-exempt property by entering into a "buy-back" agreement with the Trustee. If you execute a buy-back agreement with the Trustee, you will make either a lump sum payment to the Trustee or make monthly installment payments over a period of several months."

do you have a ton of equity in your house, most people don't. so if it's underwater the trustee may just pass.

Thanks, yes, I have equity in the house - could be anywhere's from 50 to 150k depending on what it would sell for iin this terrible housing market. And other than that, all of my assets are declared as exempt and should not be part of the estate, as I understand it.

[frogger]

As to your house, if you have that kind of equity, the trustee will probably get with a real estate agent and get the property listed. Live there as long as you can....

[tobee43]

our property was in nj....we surrendered the house. is that your plan?? you can just surrender it and not go through all this. just stay until they foreclose and save money for your move...unless you really want to keep the house.

[murphsmom]

Kev, my advice is to NOT BELIEVE what the bank is telling you. You need to get firm answers to these questions from your attorney.