Getting through the wait....

[brtb]

It's been two weeks from my 341 meeting. It was a little iffy on whether or not the trustee thought I'd get a discharge. I'm a little above the income level and then there was the issue of my grandfather's trust.

Haven't heard a thing from anyone, so I guess no news is good news. How am I going to make it through the next 6 weeks or so? The waiting is torture....

[TXskyblue]

It's tough, but there's zero for you to do. What's done is done and you can't change anything so do your best.

If you're anything like me, you are checking pacer about twice a day.

No news is good news.

[brtb]

It's tough, but there's zero for you to do. What's done is done and you can't change anything so do your best.

If you're anything like me, you are checking pacer about twice a day.

No news is good news.

I'm not on Pacer. Should I be? You have to pay right? I fear that if I get on there I would obsessively be checing it.

[LadyInTheRed]

I'm not on Pacer. Should I be? You have to pay right? I fear that if I get on there I would obsessively be checing it.

You do not need PACER. Your attorney will keep you informed.

Try to focus on other things. Find something to keep you busy that will help you keep your mind off your BK.

[brtb]

Right at the 30 day mark my aunt (the trustee of my grandfather's trust) got a letter from the Ch. 7 trustee asking for 1099s from 2011-now. Uncertain what this means for me.

I still don't understand how the "No Alienation" clause isn't helping. It clearly states that funds are not to be used to pay creditors.

[LadyInTheRed]

The extent to which those clauses are enforceable varies by state.

1099s? K-1s are what trusts usually issue. In any case, a 1099 or K-1 would show the income distributable to the beneficiary. The trustee may be checking to make sure you have reported all your income.

[nioka]

It's been two weeks from my 341 meeting. It was a little iffy on whether or not the trustee thought I'd get a discharge. I'm a little above the income level and then there was the issue of my grandfather's trust.

Haven't heard a thing from anyone, so I guess no news is good news. How am I going to make it through the next 6 weeks or so? The waiting is torture....

I don't know what to tell you to make it any easier. I can tell you that you are not alone. I am 30 days plus from my 341.
I am living in my house that I am surrendering without any idea of when the foreclosure will come. I agree that the wait causes much stress. If the stress gets to be to much you could always see your MD for something to calm you down.
One way or the other we will make it through this. Good luck.

[brtb]

Here's what my atty had to say about the trust issue. Sorry for the caps, but that's how he wrote it and I didn't feel like retyping it.

THERE ARE 2 ISSUES IN CHAPTER 7 BANKRUPTCY: INCOME AND ASSETS. INCOME IS NOT AN ISSUE AND BASED ON INCOME YOU ARE ENTITLED TO A CHAPTER 7 DISCHARGE.

AS FAR AS ASSETS GO, THE TRUST IS THE ONLY ASSET IN PLAY. AT THIS POINT SHE IS TRYING TO FIGURE OUT IF YOU WILL BE GETTING THOUSANDS AND THOUSANDS OF DOLLARS PRETTY MUCH INDEFINETELY, AND –MORE IMPORTANTLY- IF THERE IS A POTENTIAL BUYER OUT THERE WHO WOULD BE WILLING TO PAY HER X NUMBER OF DOLLARS FOR THE RIGHT TO “TAKE OVER” THIS ASSET. AS IN, SOME THIRD PARTY WOULD BUY THE RIGHT TO RECEIVE THESE DISTRIBUTION FOR THE FORESEABLE FUTURE. MIND YOU, WHEN I SPOKE TO THE TRUSTEE THE OTHER DAY, SHE HERSELF ADMITTED THAT SHE HAS YET TO ASCERTAIN IF LEGALLY SPEAKING SHE CAN EVEN SELL YOUR DISTRIBUTION RIGHT. AFTER ALL IT IS NOT LIKE YOU INHERITED A HOUSE OR A CAR OR SOME OTHER TANGIBLE ASSET. FINALLY, BOTTOM LINE, ASSUMING THE WORSE YOU MIGHT STILL DECIDE THAT YOU ARE FINE WITH WALKING AWAY FROM THIS TRUST AND NOT RECEVING ANY MORE MONEY FROM IT IN EXCHANGE FOR A CHAPTER 7 DISCHARGE. OTHERWISE, YES, YOU WOULD GO BACK TO 13.

[LadyInTheRed]

I would be tempted to respond by saying, "Thank you for the explanation. I hope you didn't mean to shout at me and just don't realize that all caps is the electronic equivalent of shouting."

So, the 1099 or K1 is to determine the value of the trust to a third party. Sounds like the trustee will be doing some research before she decides what to do. Do you receive significant income from the trust?

[brtb]

I get approx $4000/year. I'm one of 5 beneficiaries. My mom passed away so I get my portion and her portion.

My whole thing is that if I had access to that money I wouldn't be filing for bankruptcy.

[brtb]

60 days have passed and still waiting. The trustee was stilling asking for more documents on the trust (tax returns, etc). I want this to be over so I can get started on my divorce!

[brtb]

Update: I got my DISCHARGE today!!! BUT, still no resolution on what's going to happen to my portion of the trust. I'm a little confused and was shocked when I got my discharge notice. I don't want to get too excited.....

[LadyInTheRed]

Update: I got my DISCHARGE today!!! BUT, still no resolution on what's going to happen to my portion of the trust. I'm a little confused and was shocked when I got my discharge notice. I don't want to get too excited.....

It is not unusual to get a discharge before asset issues are resolved. The non-exempt portion of your interest in the trust is an asset of the BK estate until the BK trustee abandons the asset, the court orders the asset be abandoned or the case is closed.

Congratulations on the discharge!!

[brtb]

It is not unusual to get a discharge before asset issues are resolved. The non-exempt portion of your interest in the trust is an asset of the BK estate until the BK trustee abandons the asset, the court orders the asset be abandoned or the case is closed.

Congratulations on the discharge!!

LadyInTheRed, thank you so much for your reply. I have an email out to my atty, but in the meantime I was wondering what does the discharge mean for me as far as the joint mortgages I have with my husband go? Is my name automatically removed from both mortgages? Can they come back later to sue me for the unpaid debt?

I so happy this part is over so now I can focus on hiring a divorce atty. The only thing left to resolve is the house.

So, where do I go from here as far as rebuilding credit?

Thanks!

[LadyInTheRed]

I was wondering what does the discharge mean for me as far as the joint mortgages I have with my husband go? Is my name automatically removed from both mortgages? Can they come back later to sue me for the unpaid debt?

I assume you did not reaffirm the mortgages. Your name will still be on the mortgages and you will receive foreclosure notices if there is a default. But, you have no personal liability for the loans and the creditors cannot attempt to collect from you if there is a deficiency after foreclosure.