Exempt Items Stored In House Before Discharge But Pending A Foreclosure Sale

[Dorsey]

I have filed a Chapter 7. My 341 Meeting is on June 1 and the 60 day deadline for objections ends on Aug. 1.

The home lender has filed for relief from the stay so they can proceed with a foreclosure sale. I was 90% of the way through the foreclosure process prior to filing my bankruptcy petition. I have no interest in contesting the auction. So when the stay is lifted, a sale will occur quickly...certainly before the discharge date of my bankruptcy case.

Of course, the belongings in my house are currently owned by the bankruptcy Trustee. I am, however, unable to afford the cost of moving these belongings (e.g. large beds, some non-fixture appliances, desks, etc.) from my home (other than those items I wish to keep post-discharge and that will fit in my car), what are my options?

The bank would own the home post-auction, but the goods inside are owned by the Trustee, and I have no financial wherewithal to store or move those items.

Help!!

[AngelinaCatHub]

I have filed a Chapter 7. My 341 Meeting is on June 1 and the 60 day deadline for objections ends on Aug. 1.

The home lender has filed for relief from the stay so they can proceed with a foreclosure sale. I was 90% of the way through the foreclosure process prior to filing my bankruptcy petition. I have no interest in contesting the auction. So when the stay is lifted, a sale will occur quickly...certainly before the discharge date of my bankruptcy case.

Of course, the belongings in my house are currently owned by the bankruptcy Trustee. I am, however, unable to afford the cost of moving these belongings (e.g. large beds, some non-fixture appliances, desks, etc.) from my home (other than those items I wish to keep post-discharge and that will fit in my car), what are my options?

The bank would own the home post-auction, but the goods inside are owned by the Trustee, and I have no financial wherewithal to store or move those items.

Help!!

Worse than that, if the stuff is left once they repo, it may be considered abandoned. The best I could suggest is to ask someone to store it for you, or ask the Trustee to abandon it, so you can sell it. Explain your circumstances. Of course if you are represented, do this through your lawyer. Best I can tell you in your situation. 'Hub

[Dorsey]

Hub...thanks. Your response leads me to another question. Can the Trustee declare items abandoned and allow me to sell them prior to the discharge (i.e. can I ask him to do that at the 341 on June 1?) The hearing for the motion to lift the stay is on June 2 ... so there would be a few weeks in which I might be able to sell an item or two and use that money to finance the storage or removal of the remaining items.

And if the lender has knowledge of the bankruptcy, can they safely declare anything abandoned? That seems like a risk for the lender since they are in the thick of this bankruptcy with me, no?

[AngelinaCatHub]

Hub...thanks. Your response leads me to another question. Can the Trustee declare items abandoned and allow me to sell them prior to the discharge (i.e. can I ask him to do that at the 341 on June 1?) The hearing for the motion to lift the stay is on June 2 ... so there would be a few weeks in which I might be able to sell an item or two and use that money to finance the storage or removal of the remaining items. NO. That is not the appropriate place to ask. You might ask your lawyer to conference him after the 341 meeting if he is not too busy.

And if the lender has knowledge of the bankruptcy, can they safely declare anything abandoned? That seems like a risk for the lender since they are in the thick of this bankruptcy with me, no? Once you lose the house, and it changes Title, you will have a time frame I'm confident, in getting your stuff out. If you fail to do so, it is abandoned or storage fees could apply.

Hope this helps a bit. Perhaps it is good to get rid of bigger old stuff and throttle down to a simpler lifestyle. This is what we have had to do. 'Hub

[Dorsey]

Hub, thanks. I'm pro se...so I'll have to speak to the Trustee after the 341 if he has time. As for the items that are still in the house, I have no interest in keeping. If it was costless to have it taken to Good Will (and it was not owned by the Trustee), it would be gone by now. I totally hear you about the benefits of downsizing.

[AngelinaCatHub]

Hub, thanks. I'm pro se...so I'll have to speak to the Trustee after the 341 if he has time. As for the items that are still in the house, I have no interest in keeping. If it was costless to have it taken to Good Will (and it was not owned by the Trustee), it would be gone by now. I totally hear you about the benefits of downsizing.

Well this news changes much. Since you are an active lawyer, you are also an officer of the Court. ONCE the Trustee says "good luck" you are free to go, or the likes, ask his permission for a question. He will allow it. Tell him your situation and that you wish to give it away to Good Will or whomever and will give him a receipt of this so that it no longer mentally burdens you. I'll bet he smiles and says to go ahead. I am sure you can find a party to take on these items or put it in the yard, have a sale (since you stated exempt stuff) and what does not sell, leave. By morning trust me, they'll be gone. 'Hub

[Dorsey]

Well this news changes much.

You mean that I'm an attorney? Hmmmm...you mean he would speak to me out of professional courtesy? That seems gratuitous...that he should give me that chance and not others.

[justbroke]

You are the attorney of record (period). Filing pro se can be challenging, especially where issues, such as these, occur. Hub gives you good advice. Just ask the Trustee about the disposition of those "exempt' assets.

[AngelinaCat]

You mean that I'm an attorney? Hmmmm...you mean he would speak to me out of professional courtesy? That seems gratuitous...that he should give me that chance and not others.

Since you filed pro se, that is without an attorney, you ARE in fact, your own attorney. Yes, the trustee will talk with you, as there is no other person that that he/she can discuss matters of your case with.

If 'the others' that you refer to ARE represented by an attorney, then it is wrong for them and the trustee to speak directly. Remember, the trustee is working in the interest of the Creditor, not you.

Also, in the event that you have an attorney that was MIA much of the time, as in our case, he/she WILL contact you directly.

I hope this helps to ease your mind a bit. Good luck!

[Dorsey]

justbroke and Angelina and Hub....thanks for the help!

[Dorsey]

One last question, I mentioned above that the hearing on the motion to lift the stay is being held on June 2. Is that typically a hearing that I attend even I am not contesting the motion and I do not intend to submit any response to the motion prior to the May 26 deadline for such responses?

[AngelinaCat]

Probably, if you were represented by an attorney, he/she would tell you not to bother, that it is a formality.

However, since you are pro se, and therefore representing yourself, I would go, if I were in your place. If for no other reason than to watch the process. Once you are there, if something SHOULD come up that you know to be blatantly WRONG, you can object. This likely won't happen, but for the 1% out of 99 chances, I would go. I am obsessive-compulsive that way.

Do you have any of the NOLO press guides for doing it yourself? If not, it would be worth your while to check out what they offer.

[Dorsey]

Do you have any of the NOLO press guides for doing it yourself?

Yes, I have the Chapter 7 NOLO book. Book chapter 7 deals with issue, but doesn't make much of a suggestion either way. I have a 30-minute meeting with a pro bono attorney via a debtor assistance program through the Maryland District that occurs next Thursday. I'll get his/her opinion, and attend the hearing if there's any question as to whether I should or not.

Thanks for your input!

[AngelinaCat]

There is a guide for representing yourself in court. But I don't really think that this would be worth the expense of purchasing that guide, since this is essentially a 'one-time' issue.

ETA: Try going online and see if your BK District has a website. There may be enough information posted online there as to what your Local Rules are, what your Judges' requirements are, and other useful information. That is only as good as your local court and their webmasters are.

Florida Middle District (Jacksonville) has done very well with theirs and it was very helpful to us.

[Dorsey]

Angelina, thanks for the suggestion.