My 341 is tomorrow Santa Ana, CA--Trustee's questionnaire goes beyond the bk laws

[vee1]

The trustee asked me to bring my last years taxes and my bk forms. I paid on time. I am also bringing bank statements, income documentation, last mortgage statement for upside down house and property sales in the area. I don't live in the house, can't rent it but don't want a foreclosure. I live in another house--that's exempt--and bringing property sales for that, in case he asks--I'm trying to be prepared.

Trustee's questionnaire is more far reaching than the bk laws--wants to know if I transferred real property in the last FIVE years--I thought it was only two (I haven't) and if I made personal property transfers in the last FOUR years--I sold stock shares in 2010--reported on my tax return and sold at a loss. What's up with going back farther than the law requires?

[justbroke]

It is not overreaching! Trustees have broad powers and responsibility to investigate assets! The real problem is that you live in California where under California State (non-bankruptcy)law, the look back is 4 years. (There is some question whether the additional 1 year "newly" discovered time can be included in that 4 years for real property -- making it FIVE years.) Please remember that the bankruptcy law coexists with the underlying non-bankruptcy laws.

Reference: California Uniform Fraudulent Transfer Act (UFTA) 3439-3439.12

[vee1]

Thanks for the info. With respect to stock shares--I spent the money on living expenses in 2010--how can the trustee get the stock back or the money from it???

[justbroke]

Thanks for the info. With respect to stock shares--I spent the money on living expenses in 2010--how can the trustee get the stock back or the money from it???

You would be surprised at what they can claw back. In any event, they would not go after you, they'd go after the purchaser. The other thing that the Trustee is looking for is pure fraud. For example, you sold stock to a friend or family member (to technically hold) for $1/share when they were worth $100/share. The Trustee could sue that person and get them back. Yes, it's a lot of what ifs, but this is what the Trustee is looking at.

The Trustee is trying to make sure you received fair market value (FMV) for the items AND that you did not try to hide assets through a "sale" to an insider (family, friend, business partner, etc).

[vee1]

Well I wish I could get them back--they've more than doubled. They were on the stock exchange.

[AngelinaCat]

Please try to get a good night's rest tonight. Notice I didn't say SLEEP! Yes, it is stressful, but you have prepared as much as you can.

Make sure you leave PLENTY early before your appointment, in case there are traffic or parking problems. Have a bunch of quarters in hand in case you have to feed a parking meter.

Let us know how it goes....

[vee1]

I will let everyone know. Thanks for the encouragement. Just my luck, my coffeemaker broke. Maybe I'll just boil water tomorrow. Don't want to search the stores for a coffeemaker on sale.

[jst4f]

As previously noted the TT has far reaching powers. The advise I was given by my lawyer was to only bring to the meeting what was asked for and nothing else. Anything you bring can be collected by the TT and may open new issues. I realize that you must be fully honest in your application but random documents not part of the petition can be confusing and raise issues that aren't there and/or cause the TT to suspect fraud. Not worth it. You will have plenty of time to provide documents later. Take only what has been asked for.

Not breath in and out , again, slowly... Relax. Get some sleep. Get to the court early. You will have to park several blocks from the court house.

Best of luck and it will be over before you know it.

[vee1]

Okay. Do they usually ask for further documentation later???

[vee1]

Had my 341 meeting. It went okay. He had a few questions because I have two houses, but he seemed satisfied. Said good luck--he said that to everyone.

[dischargedbk]

Sounds like you are clear. Check PACER in a couple of days or so to check the Trustees filing. Congrats and best of luck with your fresh start!

Had my 341 meeting. It went okay. He had a few questions because I have two houses, but he seemed satisfied. Said good luck--he said that to everyone.

[vee1]

Thank you!