Trustee's motion for turnover of property

[backtoschool]

I'm probably wrong, but from what I've read and from what I know, this is a State law issue, so you're right to ask about Florida specifically.

I think the key to it is the "reasonably necessary". If you haven't spent it yet, then it probably wasn't "necessary" for your support at that time. The reason doesn't appear simple, but Congress could have left the words "to the extent reasonably necessary" in order to cover it 100%, as they did in the other parts of 11 USC 522(d)(10).

I think you only need look to (d)(11) to see how it (d)(10) would have been written if it were for anything that came from support. For example, (d)(11) starts with "debtor's right to receive, or property that is traceable to"... which is a big difference. Right to receive means future, and traceable implies something that already occurred in the past.

I really, just don't know. You may have to just settle with the thoughts that your lawyer is probably right.

Justbroke, wouldn't the solution be to spend it on necessary items for the children like clothes, check-ups, etc? It seems to me that the OP should not be penalized for not spending the money immediately, but I did have a question about that in my first post on the thread. I think it would considered a cash asset if not spent, but if the OP spends it on necessary items for the children and retains receipts, the trustee will not have an argument.

[justbroke]

Right. If the OP had spent it prior to filing, on necessities, this would certainly have reduced or eliminated the balance in the bank. With a smaller balance, it could be argued that there was a need (medicine, food, clothing). I just hope the attorney can work magic, but it reads as if the attorney is now saying... turn it over.

[backtoschool]

Right. If the OP had spent it prior to filing, on necessities, this would certainly have reduced or eliminated the balance in the bank. With a smaller balance, it could be argued that there was a need (medicine, food, clothing). I just hope the attorney can work magic, but it reads as if the attorney is now saying... turn it over.

Couldn't the OP spend in now on necessary items and then contest the objection?

[justbroke]

Couldn't the OP spend in now on necessary items and then contest the objection?

Could only exacerbate the situation. The Trustee could then, state that you spent/liquidated property that was not exempt, and move to dismiss for bad faith. personally, I wouldn't play games. I'd listen to my attorney, or look for other opinions from attorneys practicing in that District. Maybe a specialist who comes in Pro Hac Vice.

[gunner01]

I see you are in the Middle District of Florida as well. Did the trustee send an appraiser to your house? What kind of dollar value did they place on your non exept assets? It looks as if I am having an appraiser visit my house soon. On pacer I was able to see where the trustee has made the request. I am so confused because she also filed a 707(b) motion. Why send an appraiser if you are trying to dismiss my case, convert it, or grant my 7...

Please share..

Gunner01

[justbroke]

gunner01... who are you asking that question? For what it's worth, no appraiser came to my home and the value of my personal belonging was listed at $4,700.

[backtoschool]

Could only exacerbate the situation. The Trustee could then, state that you spent/liquidated property that was not exempt, and move to dismiss for bad faith. personally, I wouldn't play games. I'd listen to my attorney, or look for other opinions from attorneys practicing in that District. Maybe a specialist who comes in Pro Hac Vice.

Yes of course you are right justbroke. I just think that if the child support was exempt before it was in the bank account that it is wrong of the trustee to take it.

[justbroke]

Yes of course you are right justbroke. I just think that if the child support was exempt before it was in the bank account that it wrong of the trustee to take it.

You're thinking like a Debtor, not a Trustee. As I've written before, many of them will just do blanket oppositions to transfers and exemptions, just to see if you'll fight. I think that's just as wrong as the Middle District Trustee who sends the appraiser to 99% of all Chapter 7 debtor's homes. It's all about the Benjamins.

[gunner01]

gunner01... who are you asking that question? For what it's worth, no appraiser came to my home and the value of my personal belonging was listed at $4,700.

It was for beachymama.. I am sorry but, I am new to this hole forum posting thing. I wish I was so lucky.. The trustee on my case is known for sending an appraiser out. I would love to know what kind of value that find in used furniture and house hold stuff.

[beachymama]

Did the trustee send an appraiser to your house? What kind of dollar value did they place on your non exept assets?

Yes, the trustee did not tell me at the 341 that he was going to send an appraiser out. At the 341 in September, he asked me about my vehicle and did I put any money down. I said no. He asked me if I sold any assets within the past two years. I told him some land and a timeshare (2008). He asked me if I put any money down on my houses (I have two). I said 20% down each.

I checked PACER and saw that he objected to my exemptions in October. Then the trustee paid himself money to hire an appraiser to value my stuff. She came in December. She was here about an hour to hour and a-half. She asked me only about electronics. I gave her the age of my computers, laptops and TVs. She asked if she could look in my kitchen cabinets after asking about china or silver, etc. I said I had none and she could look. She asked about jewelry, I told her I had costume stuff, very little to no gold or silver. She looked in my garage and my back deck, etc.

In my BK filing, I put down $1000 or so to exempt my personal household property using garage sale prices, like $5.00 lamp, $50 sofa, $20 dresser, etc on my BK papers.

The appraiser appraised lamps $20, sofa $150, $400 headboard, footboard, queen sized mattress/boxspring, $200 for rug, bird cage and lamp, $350 for the stove in my kitchen that came with the house in 2005 (not even stainless, it is black), $460 for the 2004 G3 iMac computer (pre-Intel chip!).

Needless to say, I don't understand this. Why should I value at garage sale prices when the Trustee gets an appraiser to inflate prices? Well, of course he wants me to buy my furniture back using these inflated prices and he gets paid 25% of whatever the appraiser gets.

This is common with the Ft. Myers trustees evidently and this is sad. But you know, they can have my furniture. It will save me the $7000 to move it to wherever I may land after my job ends in June.

I did pay my attorney $250 to appeal the valuation (I think that is what I am paying her for). The hearing is next week on the 26th.

Hope this helps!

[gunner01]

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.)

What is the additional dollar amount in the "wildcard" since I am not keeping the house?

[justbroke]

What is the additional dollar amount in the "wildcard" since I am not keeping the house?

I don't understand your question because the original poster is beachmamma, and my response was to her. The exemptions are State specific, so I can't quantify what you're asking. If you are in Florida, the additional amount is $4,000 and is granted to you from Florida Statute 222.25(4).

[gunner01]

I don't understand your question because the original poster is beachmamma, and my response was to her. The exemptions are State specific, so I can't quantify what you're asking. If you are in Florida, the additional amount is $4,000 and is granted to you from Florida Statue 222.25(4).

Hello Justbroke,

I am in Florida..Thank you for the fast reply, it is very helpful.

[justbroke]

I am so confused because she also filed a 707(b) motion. Why send an appraiser if you are trying to dismiss my case, convert it, or grant my 7

I am so sorry for not havnig answered this earlier. There are two different "Trustees" involved in your case. The panel trustee (which we commonly just call the "Trustee") is respnosible for administering your Estate. They are the person who you see (or are represented) at the 341 Meeting. They are the one that are trying to appraise your property.

The other "trustee" is the United States Trustee (UST). This person is the "legally" responsible person for your whole case. They determine whether your case is filed in bad faith and should be dismissed. They have to file a Motion , usually a 707(b) motion, in order to do that.

They are two different people, with two distinct jobs. One is to liquidate your estate (panel trustee), and the other to determine if you are entitled to discharge (UST).

If you are in fact challenging a 707(b) dismissal... what's going on with that? Did the UST actually file the motion or threatened to?

[gunner01]

I am so sorry for not havnig answered this earlier. There are two different "Trustees" involved in your case. The panel trustee (which we commonly just call the "Trustee") is respnosible for administering your Estate. They are the person who you see (or are represented) at the 341 Meeting. They are the one that are trying to appraise your property.

The other "trustee" is the United States Trustee (UST). This person is the "legally" responsible person for your whole case. They determine whether your case is filed in bad faith and should be dismissed. They have to file a Motion , usually a 707(b) motion, in order to do that.

They are two different people, with two distinct jobs. One is to liquidate your estate (panel trustee), and the other to determine if you are entitled to discharge (UST).

If you are in fact challenging a 707(b) dismissal... what's going on with that? Did the UST actually file the motion or threatened to?

Hello Justbroke,

The motion has been filed. The 707(b) meeting is being held on 3-26 with my attorny. He explained that we do not have to attend this meeting. Not sure what to think about that??? We had to submit all of our documentation again along with additional stuff. We are converting from a chapter 13 to a chapter 7. Do you think this has something to do with it? The reason for the convert is because of a change in income.

Do you have any other info you can share? Please do

Gunner01