Trustee's motion for turnover of property

[beachymama]

[backtoschool]

That pacer report means that the trustee considers all of the items listed as assets that can be sold to pay creditors.

Trustees will usually negotiate a deal for you to buy back anything on the list that you want to keep. It is easier for them to do that than sell the items at auction.

Child support is exempt in Florida, if it is court ordered child support that you are receiving, but you will have to prove that that money is child support, and I am not sure if it is exempt if it just sits in your bank account as a cash asset. Someone else will have to chime in on that one.

[justbroke]

Strange the Trustee is asking for Turnover without previously having filed an Objection To Exemptions. I think the Objection is required first, to establish that your exemptions are bunk.

You should work with your attorney to fight this, if the Trustee is misapplying your exemptions. You first need a ruling on the exemptions before the Trustee can even think about requesting turnover on items that you exempted?

If you filed pro se, looks like you did some things wrong and you still need to challenge the Exemptions and update your Schedule "C" items. Also, you may have overvalued some things. In any event, reads like you're in Florida and some Trustees are known to quickly attack assets because of teh extremely low $1,000 wildcard for all "household goods" (unless you don't have a home or are surrendering it).

As an aside... unless this motion is a Motion for Turnover and Objection to Exemptions. If it's an objection to exemptions, I personally feel that the Trustee is too late, as there is a bar date for filing an objection to exemptions. The bar date for filing an objection to claim of exemptions is 30 days after the concluded 341 Meeting of Creditors. If the Trustee is just getting to this, something is really wrong. Or, did the Trustee file an objection to exemptions and prevailed?

If you filed pro se and the Trustee never filed any objection to exemptions, your affirmative defense in this Motion to Turnover is that the Trustee failed to bring forth an action challenging the use of the Exemptions within the time period permitted under FRBP 4003.

(Note: that there is an exception where the Trustee can claim an objection to exemption within one year of closing, if there is actual fraud.)

[beachymama]

I do get court ordered child support and I have the receipts and check copies.

I have an email and call into the attorney. I need to prove that the money was child support or a majority of child support funds. I pretty much spend my paycheck only for my expenses.

How long before a list of what they think my stuff is worth comes? I did not see anything on PACER listing stuff.

So household goods means ALL? How do I handle a car that I still owe the bank money? I bought the car when Nissan had 40% off MSRP when gas was $4.00 a gallon summer of 2008. No money down. I remember at the 341 he asked me about the car, and if I had put any money down and I said NO.

[backtoschool]

Strange the Trustee is asking for Turnover without previously having filed an Objection To Exemptions. I think the Objection is required first, to establish that your exemptions are bunk.

You should work with your attorney to fight this, if the Trustee is misapplying your exemptions. You first need a ruling on the exemptions before the Trustee can even think about requesting turnover on items that you exempted?

If you filed pro se, looks like you did some things wrong and you still need to challenge the Exemptions and update your Schedule "C" items. Also, you may have overvalued some things. In any event, reads like you're in Florida and some Trustees are known to quickly attack assets because of teh extremely low $1,000 wildcard for all "household goods" (unless you don't have a home or are surrendering it).

As an aside... unless this motion is a Motion for Turnover and Objection to Exemptions. If it's an objection to exemptions, I personally feel that the Trustee is too late, as there is a bar date for filing an objection to exemptions. The bar date for filing an objection to claim of exemptions is 30 days after the concluded 341 Meeting of Creditors. If the Trustee is just getting to this, something is really wrong. Or, did the Trustee file an objection to exemptions and prevailed?

If you filed pro se and the Trustee never filed any objection to exemptions, your affirmative defense in this Motion to Turnover is that the Trustee failed to bring forth an action challenging the use of the Exemptions within the time period permitted under FRBP 4003.

(Note: that there is an exception where the Trustee can claim an objection to exemption within one year of closing, if there is actual fraud.)

I am thinking that what the OP posted in her post is the objection to exemptions justbroke.

Florida has a very low vehicle exemption amount and a very very low household goods amount as you mentioned. My guess is that there is another pacer entry that has the objection to exemptions or that this is part of the objection to exemptions.

What I am not sure of, is whether the child support will still be exempt if it is sitting in the OP's bank account as a cash asset. My guess is that it would be exempt once, the receipts, checks, court order were shown.

[beachymama]

The Trustee did object the exemptions in October right at the last minute or deadline.

I remember contacting my attorney and asking her what that meant. She said she would get back with me and I don't think she did. I just remember telling her he was sending someone out to my house. Then in December he hired a lady to come check out my stuff and she asked me about electronics mostly and nothing was newer than 2005 except my laptop & a printer/copy machine combo that with was purchased in 2008 and are tools of the trade (I am a teacher).

Nothing on PACER until I checked today and saw this. My attorney is very HANDS OFF and now I am regretting my choice.

I do not know how much over the exemptions I am.

[justbroke]

The Trustee did object the exemptions in October right at the last minute or deadline.

Well, there's the problem. You, by and through your counsel, didn't oppose the objection to exemptions? If the Trustee got a default judgment, then s/he is now entitled to Turnover of all that property.

I mean, that's a real bad thing if your attorney did nothing, and exposed your Child Support and home furnishings.

I do not know how much over the exemptions I am.

You really really need to go to your Attorney's office and sit there with your attorney and review all this junk. There is no reason that you shouldn't know and understand what's going on.

[beachymama]

This sucks.

On pacer I see this:

Filed & Entered: 10/06/2009
Terminated: 10/07/2009

TRUSTEE'S OBJECTION TO DEBTOR'S CLAIM OF EXEMPTION
(This Objection is solely regarding valuation)
The Trustee objects to the Debtor's claim of exemption and states as follows:
1. The Trustee objects to the Debtor's claim of exemption concerning the following
property: All property on Schedule C, EXCEPT retirement accounts and vehicle.
2. As the basis for the objection, the Trustee reasonably believes that the value of the
personal property exceeds the statutory exemption allowance. The property has been or
will be appraised.
3. Exemptions should be limited, by law, to the amounts permitted within the appropriate
exemption scheme that is applicable to the Debtor's.
WHEREFORE the Trustee requests that a hearing be scheduled on this objection and that
the Clerk give notice of such hearing to all parties of interest.

Filed & Entered: 10/07/2009

ORDER SUSTAINING TRUSTEE'S
OBJECTION TO PROPERTY CLAIMED AS EXEMPT
THIS CASE came on for consideration on the objection to the Debtor's claim of exemptions ("Objection to
Exemptions") filed by the Chapter 7 Trustee ("Trustee"). It appears from a review of the Objection to Exemptions
that it solely relates to the value of the property claimed as exempt ("Property") only to the extent that such value
exceeds that amount allowed as exempt under Florida law. It is, therefore, appropriate to sustain the objection for the
purpose of preserving the Trustee's right to contest the valuation of the Property in the context of a motion for
turnover. Accordingly, it is
ORDERED:
1. The Objection to Exemptions is sustained to the extent the value of the Claimed Property exceeds the allowable
exemptions under Florida law.
2. To the extent the Debtor has claimed personal property as exempt in schedule C under article X, section 4(a)(2)
of the Florida Constitution or section 222.25(1) and (4), Florida Statutes, the Debtor shall be limited to the amounts of
the aggregate personal property and vehicular exemptions provided for by those exemption provisions, and all
property that exceeds such amounts shall be deemed property of the estate and subject to administration by the
Trustee.
3. In the event there is a dispute as to the value of the Property claimed as exempt, the Court shall determine the
value of the Property in connection with a motion for turnover filed by the Trustee.
4. This Order is without prejudice to the Debtor's claim that personal property is exempt or immune under any
provision of the law other than article X, section 4(a)(2) of the Florida Constitution or section 222.25(1) and (4),
Florida Statutes.

I don't see anything stating that I objected or that my attorney sent in anything. I will go in and see her this week.

[justbroke]

I don't see anything stating that I objected or that my attorney sent in anything. I will go in and see her this week.

This is one of those Motions that are AUTOMATICALLY granted by the Clerk of the Court (under Authority of the Presiding Judge). Basically, the Trustee doesn't trust the prices that you used to value your property. If you were only using the $1,000 wildcard, and said you only had $1,000 of personal property... I can see the issue clearly!

This means that your Motion for Turnover will need to be fought as to the valuation. Your attorney will need to file an Opposition and/or let the Trustee appraise the property. You may also need to modify the exemptions claimed on Schedule C since you should have, if you surrendered your home or don't have one, claimed the additional $4,000 available under Florida Statute 222.25(4), to give you a total of $5,000 in wildcard and $1,000 for your automobile (if necessary).

You need to get a meeting with your attorney and sit down and chat! That old order was from October. I hope you didn't get rid of anything.

[beachymama]

My attorney came up with a letter dated from December that shows that my furniture was valued at $8900. Yes, I did put down $1000 but that was because I thought we were doing garage sale values. The estate appraiser has prices that are not garage sale values. I mean some of the stuff she appraised stuff for more than I paid for it 5-7 years ago.

I mean who pays $200 for a used sofa at a garage sale or $80 for a Gamecube I bought used on Ebay back in 2000? Its not gold.

So do I have some bargaining power or I am willing to give it up except my work stuff I need like my laptop, copier and printer (I am a teacher and use that stuff daily).

Evidently I was supposed to pay $833 a month for the next 14 months beginning February 1, 2010, but nobody told me.

[justbroke]

So do I have some bargaining power or I am willing to give it up except my work stuff I need like my laptop, copier and printer (I am a teacher and use that stuff daily).

Now you, through your counsel, will file an Objection to Turnover and Opposition to Trustee's Exemption Values. Then you present your evidence that the Trustee's appraiser used values that are not commensurate with the brand, age and quality of the items. Documentation is key!

Evidently I was supposed to pay $833 a month for the next 14 months beginning February 1, 2010, but nobody told me.

Makes sense why the Motion to Compel Turnover was issued!

[beachymama]

Will this piss off the trustee? Make my life even worse than it is already?

I am ok with giving up the furniture. I am moving out of state and that will save me from having to pay to move it. I would like to negotiate with some of the stuff but the majority of it can go.

I am just hoping to make it though the school year.

[justbroke]

Will this piss off the trustee? Make my life even worse than it is already?

No, it's a game. The Trustee is the pitcher, and you are currently at bat. Hit one out of the ballpark now!

I am ok with giving up the furniture. I am moving out of state and that will save me from having to pay to move it. I would like to negotiate with some of the stuff but the majority of it can go.

Depends on what your preference is However, I would challenge the valuation!

[beachymama]

I am sure my "do nothing" lawyer will be asking for more money right!?!?!? Ugh.

[backtoschool]

It sounds like your lawyer dropped the ball on this one.

If you challenge the valuation you will probably win, but it will cost you money.

Then again, if you call the trustee's bluff and tell him to come get your used sofa then he will probably end up abandoning those items anyway since he will not get much for them in an auction and he knows it.

But, since you have to file a response anyway to show that the child support sitting in your bank account is court ordered child support, then you might as well contest the furniture and anything else that your lawyer overvalued.