Post 341/Discharge/Closing Advice

[StrawberrySu]

My 341 is next week, and hope all goes smoothly. I have some questions for life after the 341. Don't want to do anything to get in trouble or mess up my case.

1. Can I spend on Christmas as I wish without concern of the Trustee? I would use cash from our savings, and I just plan on spending a bit more than my atty allowed for gifts.

2. When can we start reducing expenses (I.e. lower insurance costs, etc.)

3. Our plan is to take our savings that we were able to exempt by filing Federal exemptions, and buy a foreclosed mobile home, once we have saved a bit more. Otherwise we are 5 years after whenever our three mortgages are foreclosed on before getting a home loan. Not willing to pay rent for years only to take on a mortgage at retirement! If we buy said mobile home and move in, we won't be paying the rent we are now. Will that be a problem?

4. We have a former home, a rental that used to be a former home, and a rental that was a home we bought for our kids. No income from them at present, but plan to rent out when it is safe to do so. When would that be? Post 341 .... post closing/discharge .... 3 months ... two years ... I have read time lines that are all over the place.

Essentially, we want to know what we can do and when we can do it, without getting into any trouble, and without hiding things and hoping we don't get caught. Thanks everyone!

[buzzstpoint]

Your trustee will tell you that you have to notify him/her of any changes in income, employment or any other big ticket items or property you get.
I would assume within the 60 days of your 341 if you start renting, you will have to notify the trustee. After your discharge is complete, you should be safe to start renting.

As for lower your monthly expenses, Go ahead and do that after your 341. You are doing nothing but making life easier for yourself.

As for Christmas.. I wouldn't go overboard. Your trustee would probably pitch a fit if they found out you bought a 70" plasma tv for 4000 dollars.
Lets say a family member gives you 40 acres of valuable land for an X-mas present.. You would have to notify the trustee.


Just a side note. Not knowing your situation, I wouldn't go overboard this Christmas, Over indulging is how most of us came to be here. Buy presents that are reasonable, not outrageous.. A 30 dollar pair of ice fishing gloves is reasonable, 150 dollar designer gloves isn't.

[StrawberrySu]

Buzz, thanks for the advice. As far as Christmas goes, we will only buy for our four granddaughters, no one else, not even each other. And to me $30 for ice fishing gloves (or any gloves for that matter!) is way out of my comfort zone. I have read different post from posters getting in trouble with trustee over Christmas expenses tho, so I was worried.

[AngelinaCatHub]

Your trustee will tell you that you have to notify him/her of any changes in income, employment or any other big ticket items or property you get.
I would assume within the 60 days of your 341 if you start renting, you will have to notify the trustee. After your discharge is complete, you should be safe to start renting.

As for lower your monthly expenses, Go ahead and do that after your 341. You are doing nothing but making life easier for yourself.

As for Christmas.. I wouldn't go overboard. Your trustee would probably pitch a fit if they found out you bought a 70" plasma tv for 4000 dollars.
Lets say a family member gives you 40 acres of valuable land for an X-mas present.. You would have to notify the trustee.


Just a side note. Not knowing your situation, I wouldn't go overboard this Christmas, Over indulging is how most of us came to be here. Buy presents that are reasonable, not outrageous.. A 30 dollar pair of ice fishing gloves is reasonable, 150 dollar designer gloves isn't.

Excellent advice. For Christmas I would suggest purchasing exempt clothing, things you can use and of course (some) toys for the kids. Mrs. and I are beyond the kids so we simply put what we got during the year into envelopes and open the envelopes in thanks giving for what we needed. Perhaps a token but inexpensive gift or two at the most. We are happy with this. 'Hub

[StrawberrySu]

Excellent advice. For Christmas I would suggest purchasing exempt clothing, things you can use and of course (some) toys for the kids. Mrs. and I are beyond the kids so we simply put what we got during the year into envelopes and open the envelopes in thanks giving for what we needed. Perhaps a token but inexpensive gift or two at the most. We are happy with this. 'Hub

Thanks, 'Hub. Will do. Now hoping for advice on the rest of my questions, lol.

[GIn]

If you filed Chapter 7, you can spend your money on whatever you want after your filing date. It's none of the Trustee's business and the Trustee is not going to ask about it. You do not have to notify the Trustee of any changes in income, as long as you were truthful when you filled out your original schedules. You do not have to notify the trustee if you decide to rent something. The Chapter 7 looks at ONE DAY in time. After that date your life is yours again, unless you receive an inheritance within six months of filing.

[StrawberrySu]

GIn, this is also what my attorneys says ... I am just leary of doing anything! Maybe if I can get my attorney to put it in writing...lol

[IamOld]

Strawberrry, just wanted to wish you all the very best for next week!!!!!!!!!!!!

[StrawberrySu]

Strawberrry, just wanted to wish you all the very best for next week!!!!!!!!!!!!

Thanks, Iam! It's bizarre, I can barely worry about it, because the next day I am having my second cataract surgery (on the other eye), and will be able to see 20/20 without glasses for the first time in 40 years, lol. I am diabetic, so even tho I am under the double nickel (just), my eyes grew cataracts. I thought my glasses just really sucked! Anyhow, surgery is painless and quick with minimal recovery time. I know cause I had it last month for the first eye. Luckily we have Tricare insurance which covers it all. So all I can think of is that ... hope I don't screw anything up because my focus is not where it needs to be ....

[IamOld]

hELLO! Believe it or not I just got off the phone with one of our retirees who is about 20 yrs your senior...the whole surgery was TWO hours TOTAL!!!!! In and out...

SO - BEST WISHES FOR THE SURGERY!!!!!!!

And yes, tricare is excellent.

Thanks, Iam! It's bizarre, I can barely worry about it, because the next day I am having my second cataract surgery (on the other eye), and will be able to see 20/20 without glasses for the first time in 40 years, lol. I am diabetic, so even tho I am under the double nickel (just), my eyes grew cataracts. I thought my glasses just really sucked! Anyhow, surgery is painless and quick with minimal recovery time. I know cause I had it last month for the first eye. Luckily we have Tricare insurance which covers it all. So all I can think of is that ... hope I don't screw anything up because my focus is not where it needs to be ....

[nohoneymoney]

4. We have a former home, a rental that used to be a former home, and a rental that was a home we bought for our kids. No income from them at present, but plan to rent out when it is safe to do so. When would that be? Post 341 .... post closing/discharge .... 3 months ... two years ... I have read time lines that are all over the place.

We filed BK7 non-consumer due our failed real estate investments. I don't recommend renting out the house until after you know what the trustee will want to do with the house. S/he may want to take it and sell it to pay creditors. I don't know your details. We have not changed anything in our real estate properties until the trustee rules on them, ie are they assets s/he can sell. I don't believe there is any realizable equity in any of them but s/he may want to try to sell them. If the real estate properties are abandoned by the trustee in the discharge and the BK7 closed you can do whatever you want with the properties as soon as you want ie no waiting period beyond the BK7 closing. So to be safe/safe wait until discharge and closing to rent it but I am only waiting until I hear on the trustee's determination on assets, which is shortly after the 341. Hope this helps.

[StrawberrySu]

NoHoney,

The houses are all seriously underwater in a depressed area, so I doubt the trustee wants to have anything to do with them, lol. Our plan is to wait until discharge/closing just to be certain. I guess I am looking at after the closing .... once we are no longer paying the rent we were paying in our Schedule J, (if we buy a mobile home), could the trustee say "well now you can fund a 13"? I would assume he would figure out the rent situation by the purchase of a mobile home. I have no clue if they follow that sort of thing (probably their minions, not them) after you are closed. But the renting of the properties is the only thing that will enable us to purchase something. There are at least 50 mobile homes, some fairly new, prolly all foreclosures, under $50k, where I live. Now we don't plan on spending anywhere near that, but I have seen a few in that price range sell for $15k. That we could swing. So I want to be able to jump if the right property comes along, but don't want to do it too soon. The other homes in that price range, condos and regular construction, are for the most part in undesirable areas, so it's a mobile home for me.

[jst4f]

What ever you are left with post-BK (discharged and closed) is yours to do as you please. The trustee knows that you could rent them so you are not hiding anything.

[StrawberrySu]

What ever you are left with post-BK (discharged and closed) is yours to do as you please. The trustee knows that you could rent them so you are not hiding anything.

I hadn't actually thought of it that way, thanks!

[StrawberrySu]

Heard back from attorneys office. They said items 1, 2, & 3 (from first post) are all fine after 341 and closing. Item 4, renting out the properties, is a concern only in the fact that they said once we have surrendered the rentals through BK, the foreclosure process doesn't follow a normal route. That it would go much faster, since we are not objecting to the foreclosure. Anyone have any experiences in this? Rentals are in Ohio, and banks are Chase, Citibank and Wells Fargo. We know we are responsible for them until foreclosure, and insurance has been quoted at $400 a month for all three. If I pay that, I need them rented to pay for it. If they are rented, I want to get enough income to cover repairs, because it will cost more long distance. Or should we just take our chances on not being sued for liability?