Schedule C Error,

[avalance]

In my 341 today the trustee kicked back my schedule c. He said I was exempting too much. I have to provide an amended one. I guess I screwed up the numbers. I have it narrowed down to the house and our cars. We are in Michigan filing jointly.

For the house, we owe 118,000 on it, its only worth 85,000. Do I even list this, or do I list the exemption amount, then the value?

Cars, same question. Owe more than they are worth.

[BobMango]

If the trustee is objecting to your exemption amounts, did they state which exemptions you were over on? There are specific limits and you need to make sure you don't claim too much in any category.

On my Schedule C, my house is listed at $370K, exemption amount $10K

Basically you list the value of the asset and the amount you are exempting.

In regards to my cars, I had one with a loan, the others are owned free and clear. I listed the value of the vehicle and for those that are owned, the exemption amount matched the value. I used the Federal exemptions so used my unused homestead exemptions to add to the usual 2 car exemption amount to protect them.

On the vehicle that I had a loan on, I have about $8K or more in equity. So the value of the vehicle was $20K, the exemption amount then was the difference between the value and my loan balance of $12K, leaving equity of $8K that needed to be protected. If you are underwater on them, your exemption amount would be $0.

Hope that helps.

[avalance]

Ahhhhhhhhhh, He mentioned, not very directly two 85,000 dollar exemptions, 1 on my Schedule C and one on my wifes. Looking at my copies I listed the claimed amount as 85,000 as well as the value, so I think thats it.

Now, I don't even have my car or my wifes car listed on the Schedule C's, so my last question, is do they have to be if I am keeping them, and yes, I owe more than they are worth.

[justbroke]

You do not need to exempt anything that doesn't have equity. The purpose of exemption is to protect equity in the property. My cars are not listed on Schedule C, as I have no equity in them. Neither are my homes.

The only thing on my Schedule C are my household items, clothing, household electronics, pension plan, and checking account.