Back at the end of September my husband got a letter saying "The trustee has reported to the court the recovery of assets which may permit the payment of partial/additional dividends to creditors." Goes on to say they have until 1/3/13 to file a claim. We have no clue what assets the trustee is referring to. We will be getting about $4,000 for a tax refund but I thought that went to the trustee anyway. We don't own much. Is the trustee talking about the things we have that we were paying on before the bankruptcy? I thought that if the lender wanted they can reposes whatever is included in the bankruptcy that we stopped paying for without filing a claim. I'm so confused.
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Hi Bignes, welcome to the forum.
It appears that the valuation that you put on your items such as household furnishings, clothing, perhaps the automobile(s) exceed your state's exemptions, and the trustee can go after the difference. The trustee may also be referring to your tax refund. The letter you got, should list the non-exempt items.
Your 60 day period for creditors to object to the discharge of their particular claim--which should have come sometime this month--has been extended to January 3, 2013.
There also may have been a follow-up notice from the trustee offering you the opportunity to buy your non-exempt items back from your BK Estate, before they are offered for sale to the public at a public auction.
Did you use an attorney to file, or did you do this on your own? Did both or you file for BK, or was your husband the sole filer?
I just looked at the Kansas state exemptions, and they aren't very generous. We had the same situation here in Florida, when my husband and I filed BK in 2007, and we ended up buying our non-exempt items back from the BK estate.
If you can fill in some details, that will help the members to answer your questions with more detail.
Good wishes to you.
"To go bravely forward is to invite a miracle."
"Worry is the darkroom where negatives are formed." -
My husband is the only one who filed. He is using a lawyer. There were no non-exemptions in the letter. Only other thing it stated was saying how creditors can go about filing a claim. That is the last letter he has received. Well, besides the reaffirmation agreement for our vehicle that his lawyer sent. We are not signing it and hoping since the payments are up to date they won't take it. No letter offering to buy back any items. All we own outright is the couch, coffee table, end tables, china cabinet, kitchen table, washer, dryer, kids beds and dressers, our dressers and of course all of our clothes. He has a few tools but nothing significant. That's pretty much all we actually own. Everything else we were paying on.Comment
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The tax refund is an asset subject to exemptions, just like your furniture. So, it doesn't automatically go to the trustee.We will be getting about $4,000 for a tax refund but I thought that went to the trustee anyway.
If the refunded was not exempted, that is probably the asset the trustee refers to.
Does your husband's schedules show any assets other than the tax refund that are not exempt? If not, for the trustee to recover any assets your husband claimed as exempt, he'd first have to file an objection to exemptions and get a ruling in his favor.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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I looked at his schedules and all I seen were exempt assets. There isn't a non-exempt schedule, should there be. Only part that a tax refund is mentioned is at then end. But it just says a $1,000 goes to the attorney and that's it. I don't know much about any of this so I forgive me if I'm leaving out things that would be more helpful in answering my question.Comment
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Then it appears that only part the tax refund was exempted, and that this $1,000.00 was not covered by the exemptions.
Since your husband is the one that filed, why not have him sign up for an account here?"To go bravely forward is to invite a miracle."
"Worry is the darkroom where negatives are formed."Comment
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Ok, thanks. He is more of the type to go with the flow. I like to know what's going on and like to ask questions.Comment
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All assets, exempt or not, should be listed on either Schedule A or B.
Exempt assets are also listed on Schedule C. Non exempt asset are not listed again.
So, the tax refund should be on Schedule B. If all or part of it is exempt, that exemption should be shown on Schedule C.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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Schedule B has household goods and furnishings, banking (overdrawn the day he filed),clothing and personal effects,jewelry,camera and life insurance and our vehicle. Then on schedule C it says property claimed as exempt and on the table underneath that it says schedule B personal property and lists all of the above things I mentioned again. Does that mean everything that was listed on Schedule B and then relisted on schedule C is the assets the trustee is talking about? If so, that's absolutely everything we have. That would really suck.Comment
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Did you attend the 341 meeting with your husband when he had his? If not, does he remember any comment from the trustee regarding your Income Tax refund?
At our 341, several people ahead of us were cautioned about not cashing their refund checks until they had checked with the trustee..."To go bravely forward is to invite a miracle."
"Worry is the darkroom where negatives are formed."Comment
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While searching for something else, I found this thread:
This may help you understand the process a little better--especially Justbroke's responses."To go bravely forward is to invite a miracle."
"Worry is the darkroom where negatives are formed."Comment
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No, that means that everything on schedule B is claimed as exempt on Schedule B. If the trustee has not objected to exemptions, he can't recover those assets. It must be the refund. The refund really should have been listed on Schedule B. It sounds like it was disclosed somewhere else though.Originally posted by Bignes View PostLadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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Ok. Thank you all for the help! It's been very helpful in understanding everything.Comment
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Another thought, is it possible that there were payments made to a creditor prior to filing bk, that were considered preferential, and the trustee recovered those payments from that creditor in order to redistribute.
The fact that the letter says that something was "recovered" would lead me to believe that this letter means that the trustee has something in his hands to distribute as opposed to something future (ie tax return).
But I could be completely off base, I am far more familiar with ch13 than ch7Comment
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