How do you let the trustee know you want to buy back asset at filing?

[cubanito72]

Let me explain what I mean, when you're filling out your petition and you list a free-and-clear car which is not going to be exempt, how do you let the trustee know that you want to keep it by buying it back from the estate? Do you just file the petition, let the trustee file the Motion for Turnover of Property.....object to that and get a hearing...and then offer to make payments at the hearing? OR is there a way of indicating your intention to buy back the asset on your initial filing? Is there anything like the "Statement of Intentions" for free and clear non-exempt assets? Or does the trustee HAVE to file the motion for turnover and then I object? Just seems like such a waste of the courts time since I already know I want to keep the car and make payments.

Thanks for you answers everyone...This site is really helping me do my homework before filing.

[despritfreya]

You must understand that you do not have the right to direct how the trustee administers the estate. In a Chapter 7, the Trustee has a duty to sell the non exempt asset for the "highest and best offer". He does not care if that offer comes from you or John Doe. If you wish to make a bid you have two choices:

1. Show up at the bk auction and bid just like John Doe.
2. Make an offer to the Trustee, usually after the 341 meeting, and hope that he accepts it instead of using it as the opening bid for the auction.

Unless the Trustee agrees, you would have to quickly pay off the estate. Quickly could be 24 hours after being the successful bidder. It could also be 30 days. Some Trustees will agree to payments over a short period of time, say 6 to 8 months. Just depends upon the Trustee.

The Trustee will communicate with you. He usually says something at the 341 meeting like, "How do you want to handle the non-exempt value in the vehicle - please think about it and give me a call within ten days. And, so long as you have possession of it you must make sure it has full insurance coverage."

Now, if you get a Trustee who is a jerk (some are), he can demand the immediate turnover of the vehicle. If such a demand is made, do not force him to file a Complaint for Turnover as if you do, kiss your discharge goodbye. You have a duty to cooperate with the Trustee.

Des.

[cubanito72]

Thanks for the replay. I'm in the middle district of Florida. From what I've gathered, in this district the trustee's will allow the debtor to buy any unexempt assets for their value. They give you a discount if you pay it within a short amount of time.

From your reply, I'm going to assume that the best way to try to avoid a Motion for Turnover....having to object....hearing....is to just bring it up at the 341. The trustee will either ask me about the assets OR I should mention it if he doesn't. Tell him that I would like to buy back the car over 12 months. He's either going to tell me to take a hike, or tell me to get some agreement sent to his office within 10 days or so.

That sounds like the way to go.....don't leave the 341 without mentioning it.

[AngelinaCatHub]

We too are in the middle district. Our Trustee was most kind. He lowered the price to an even amount and gave us 12 monthly payments, no interest, and we paid it, case over. It takes a long time to close an asset case but we did not care. Our Trustee was pretty nice. 'Hub

[AngelinaCat]

Let me add to what 'Hub said. We had several non-exempt items. We also had three cars. One, a VW Jetta, still had about 10 months to go before it was gully paid off. The other cars were a 1993 Pontiac Grand Am, valued at about $300-500, and a 1968 Chevy Impala that had been sitting at least four years, valued at ?????? The trustee decided to Abandon the cars as being either 'fully encumbered and/or exempt' (the Jetta), or 'too old and of little to no value' (the other two cars).

The other non-exempt items included 'Hub's computers for his consulting business, (Florida doesn't allow 'Tools of the Trade'), a couple of pistols, a couple of clocks, a cypress slab table, and a few other things. Plus a deposit to FPL for $790.00, as a penalty for paying late, that we had to muster up to keep the electricity on. [I still do not see how that is viewed as an 'asset' as that was a hardship.]

But as 'Hub said, the trustee offered us the chance to buy these back from the BK estate, before putting them out for auction to the general public.

I hope this helps. BTW, our courthouse is Jacksonville.

[cubanito72]

We too are in the middle district. Our Trustee was most kind. He lowered the price to an even amount and gave us 12 monthly payments, no interest, and we paid it, case over. It takes a long time to close an asset case but we did not care. Our Trustee was pretty nice. 'Hub

Thanks Hub,
In your case, when and how did you let the trustee know you wanted to keep the car and make payments? That's really my question. Did the trustee file a Motion to turnover property, or did you let him know you wanted to keep your car and make payments at the 341 meeting?

[AngelinaCat]

In our case, the trustee formally Abandoned Interest in the three vehicles, so they were no longer in the picture. It is possible that your car may not be worth as much as you think, or it is too old. The trustee may decide to abandon it.

Edit to add: I went back and found your January post where you said your vehicle was worth 5K. Justbroke asked some questions there that you have not answered.

http://www.bkforum.com/showthread.php?75007-how-to-redeem-free-and-clear-vehicle-if-there-s-no-exemption-left

Knowing some of those things would help us to answer....

In our case the trustee sent a 'Motion for Turnover of Property' to the court and to us through our attorney. This motion also contained a proposal to us to buy back our stuff at a price of $450.00 per month for 12 months, which totaled 5K. We expressed our consent to those terms and the Motion was granted. Then we sent a money order with the case number for the set amount to our trustee for next 12 months...