Objection to Exemption on Schedules

[rjroyse]

Hi All.

We received ( our lawyer did) a letter from the trustees attorney today.

Yes - they want us to turn over the mutual fund - saw that coming
They list a couple other non exempt items that they asked if we wanted to make an offer on (knowing that if we are not the highest bidder that we lose out. they did make an interesting comment on that one though, that they disagreed with my claimed amount on the purses. I am guessing she thinks they can get more. My answer is go for it.

Final thing. they stated that we had a contradiction between the testimony at the 341 and our schedules. I have camera equipment - I am being trying to make it more than a hobby for several years. take xmas photos of friends. I am the staff photographer at work, etc. in the testimony she asked if that was my job - photography. I answered no - because well, it is not my 8-5 job. I am hoping for some day but not at the moment.

So after wards my attorney got a little upset at me because we were trying to say it was a tool of the trade - that I am working towards that. We sent them a letter and a letter from my employer, etc.

In the letter we received today. She stated that since there was a contradiction that she was going to file an objection to the claimed exemption of the camera equip.

what exactly does that mean and what is going to happen?

I am guessing that they will want the camera equipment, if I want to make an offer etc, then put it in auction. Am I correct? is there anything else that this will mean? trip to the judge?

and now I have to some how politely tell the people I have scheduled for photos that I can no longer do it. what a nice feeling.

thank you for your help on this on..

[AngelinaCat]

they stated that we had a contradiction between the testimony at the 341 and our schedules. I have camera equipment - I am being trying to make it more than a hobby for several years. take xmas photos of friends. I am the staff photographer at work, etc. in the testimony she asked if that was my job - photography. I answered no - because well, it is not my 8-5 job. I am hoping for some day but not at the moment.

So after wards my attorney got a little upset at me because we were trying to say it was a tool of the trade - that I am working towards that. We sent them a letter and a letter from my employer, etc.

In the letter we received today. She stated that since there was a contradiction that she was going to file an objection to the claimed exemption of the camera equip.

thank you for your help on this on..

Talk to the attorney and have him draft a letter to the trustee, explaining exactly what you have said here. It may be that the 'Tools of the Trade Exemption' may be disallowed. Have the attorney write that if necessary you are prepared to make a 'reasonable offer'.

You are not going to be required to turn the cameras over immediately, so go ahead and take your pictures as planned.

Now if you are told something different by your attorney, you will have to go with that.

[rjroyse]

THank you. The attorney I think was trying to do that in the letter she sent a few weeks ago, and this was the response that we got.

In the letter it also stated to turn over the other assets as soon as possible - the check, purses, etc. I assumed that meant the camera equip also.

I guess I am also assuming that once you make your offer, you do have to turn it over before the auction? that you would not actually have the goods until the auction is over and you have the highest bid? maybe I am not understanding.

thank you.

[AngelinaCat]

Your district and trustee may run things differently in Arizona, than its done here in Florida.

When we had our 'sale' we did not have to turn anything in. Our trustee made us an offer first, before anything ever went to public auction. And we accepted the offer, so we never had anything go to public auction.

[rjroyse]

I am hoping Des chimes in. But in AZ as I understand it - all goes to auction. regardless of your offer to them. they even stated that in the letter. that we can make an offer to buy back , unless they get a higher offer at the auction. So I am hoping he can tell me how soon I will have to turn things over - or if I get to wait until after. I dislike talking to my attorney as they are completely condescending.

I cannot image that they would, but I would be pleasantly happy if that was the case.

[AngelinaCat]

I hope Des does too.

[bcohen]

What kind of camera equipment are we talking about? I would have just put "digital camera: $50" on the petition, unless we are talking some super high-end stuff. Even if you paid $500 for a camera several years ago, it's unlikely to be worth more than $50 today, anyways.

[despritfreya]

rjroyse,

Let me guess. . . your Trustee’s initials are DA??? If so, she is one of the more aggressive Trustees in AZ.

Anyway, if I recall correctly from an earlier thread, you do not use the camera equipment at your place of employment and indicated that the use of the same is more or less a hobby. I will assume you do not depreciate the equipment on your tax returns or have any associated business write-offs. If I am correct then the equipment may not fall under the Arizona exemptions as “tools of trade”. I don’t have my hands on the specific Statute that was in place when you filed and I am not sure if the current language (which includes “development” of a business) was part of that Statute. Regardless, once the Objection to the Exemption is filed, there will be a “controversy” over whether or not the camera equipment is exempt.

Hopefully your attny understands the ramifications of dealing with a “controversy” as opposed to the simple sale of an asset. Once a "controversy" has been created the parties are now set for “settlement” and such settlements are not subject to “higher and better offers”. Settling a controversy is not the same as selling an asset of the estate. Assuming your attny understands what this means, you will begin the process of negotiating a “settlement of the controversy” to “buy back” the camera equipment without the need for the items to go up for auction. This would amount to a “Compromise Settlement” under what is called the Woodson test. We do this all the time and it works - saving the debtor from having to worry about others trying to buy the item at an auction.

Please discuss this with your attny. This would eliminate the need to turnover to the trustee the camera equipment.

As to the 341 testimony, get a copy of the tape. There is a form supplied by the US Trustee that you fill out and you supply the form and a CD to the UST to obtain a copy. If there were incorrect statements you can submit an Affidavit to correct the record. Again, your attny should know how this works.

Des.