My Story.. (long and rambling)

[DSIG]

your beating yourself up too much about the title. How would you know in 2003 that you would be filing for bankruptcy 3 years later. How far in debt were you then? Although you transferred the title to your mom at less than what the trustee would consider to be the market value, she probably sold it at market value, correct? The improper property transfers which the trustees watch out for are the ones that occur close to bankruptcy filing, when someone knows they are insolvent and they trying to protect their property by transferring it in the short term with the intent of recovering the property after the dust settles. These conditions dont seem to apply here. Do you have any documents on how much the property sold for so you can demonstrate that it was, I am assuming, sold at market value? You have to list in your schedule the transfer amount. This will raise an eye-brow but if you explain to the trustee what you explained here it will be clear.

[BrokenBrklyn]

Thanks DSIG, you're making me feel a little better.
The transfer and sale was in 2006. I had around 10,000.00 in debt and making hardly anything, but that amount at the time didn't seem unmanageable. I was building my portfolio and getting started with my business so going into 10 or 20k of debt didn't seem like all that bad for something that was supposed to end up more lucrative than it has been. I didn't even realize I was going to have to file until early this year.. until I realized I just couldn't manage... and even if work was to turn around, it would still be impossible to dig myself out.

I transfered the title to my mother for no monetary value. The 7k was a misc. pay out at the end of her escrow from the sale and she did sell it at market value. for around 220,000.00. I found this out when I managed to get a hold of the closing document from the escrow agent.

I have heard however, the trustee can go back 10 years on property transfers.

[DSIG]

yes, the trustee can go as far back as 10 years. Its best to be forthcoming with what property you held title to rather than have him stumble across it. I co-titled a vehicle I never drove, but I listed it. Listing it is the most important thing because it shows you are not concealing assets. The trustee has ways to find out what the property sold for but if you have the documentation bring a copy of it with you at your 341 meeting, and provide it to him when he asks, as I provided market research/appraisals of the the two vehicles which I transferred. If your mom did not sell it, for example, and its still in her name, the trustee may have reason to believe that she may re-title it to you. But she sold it, so this type of scenario is not feasible. This money has gone poof, correct? IF, if he drags your mom to court, which I see as unlikely, she will have to - under oath - explain where the money went IF the trustee thinks that she stashed it to give back to you. Then the spotlight is on her, and quite frankly, who wants to perjure themselves?

List the title transfer as zero on your schedule and bring a copy of the paperwork and the value at which it was sold and explain that your mom sold it but coerced you to re-title it to her so she can sell it. That is the truth. It may not even come to that because the trustee will realize he has on interest in this property since its proceeds have been spent.

My trustee asked for the market research on the value of the automobiles which I transferred. I provided this at the 341 meeting and that was the end of it. When he saw that he had no interest in the vehicles (one had a salvage title and one had prior body work which resulted in less than market value), he did not reverse the titles. Also, my ch 13 plan will pay him more at the 14 month mark than what the vehicles would pay if the transfers were reversed.

[BrokenBrklyn]

Thanks DSIG.
In the scheme of things, the money I did ask her for from the sale, on top of a repayment of a loan she did give to me and I asked for it to pay off some of my debts at the the time (at the time I asked for the full amount of my credit card debt, somewhere close to 10K but when that didn't happened I settled with her for the 7k because I was sick of arguing about it.

I'm still worried and my 341 meeting is tomorrow...

[DSIG]

If you spent the money received there is nothing the trustee can do about that, kind of like spending your tax return you receive before you file. Keep the truth in your back pocket although I think you may not even need to bring all this up. The trustees are busy these days, so he may just gloss over it. Good luck and let us know how your 341 meeting goes

[BrokenBrklyn]

I'm bringing copies of invoices and checks with me from 11/01 to present. I do have business expenses out of this $$ though.

How about work that I did and received payment for that I didn't know about at the time of filing?

I haven't spoke to my lawyer since signing the petition, supposed to be speaking with him today but he hasn't mentioned this at all.

Would the trustee go off of what I have in my bank account tomorrow and invoices I have out currently?

[DSIG]

I filed a ch 13, so what I had in the bank was not important as it was all exempt. Leave in your bank enough to pay for your bills over the next month. Is your balance exempt on your schedules? If so, he wont touch it. I think for a ch 7, they will take what is not exempt. So, if you exempt 1000 and actually have 1500, the trustee may take the difference. All districts are different so I cant say conclusively what will happen to your account.

If you get a chance go to one of my earlier posts back on the general forum--I posted about how to organize your documents for your 341 meeting. IF you have time, put all your documents in a binder with some tabs...nothing fancy. It sure makes you look like you got your finances together. It worked for me AND the binder came in handy. When the trustee asked for certain documents I pulled the copies from the binder and handed them over on the spot.

[BrokenBrklyn]

In all honesty, I don't remember what was listed as exempt on the schedules. My attorney handled all of that.
In NY state it's up to 2500.00 and worked, but unpaid wages they can only take 10% of.

But what I'm unsure of is, is that 10% of unpaid wages at the time of filing, at the time of the meeting or inbetween?

Seriously, after I get a cashier's check to pay my rent, I'll have about 200.00 in the bank.

[DSIG]

post-filing and the post-341 period was a rocky time with my bank account. I, too, wanted to leave just enough. You will eventually build your cash flow back. You should review your schedules. It may not be late, you can get a pacer account and view everything online. I dont remember if I had to wait to get a username/password or if it was automatic. Regarding you wages, the trustee will go with what is on your paystubs, not with what was forecasted or anticipated. My trustee zeroed in on my paystubs and what my husband made (I only brought 1 of his paystubs). Take 6-months worth of paystubs with you and dont forget your income tax returns.

[BrokenBrklyn]

All of my documents for the case were already submitted to the trustee at the time of filing. Except everything related to payments from November 1st to the present (I filed nov 6th)

Also, at the time of filing November 6th I had 242.00 in my bank account

The trustee I was told goes back 6 months prior from Oct 31st backward.

On Nov 1st I received $3000.00 in payments (all of it went to back bills,business expenses, and to pay rent for November and to pay my lawyer an addtional 500.00 and pay 200.00 to my accountant)

At the time the case was filed, I had 242.00 in the bank and I had an additional 1500-1600.00 out in invoices. which would probably fall under unearned but unpaid wages...

Now, I've been paid on all of these and about 1400.00 additionally...

[BrokenBrklyn]

I don't get pay stubs. I get personal checks..

and honestly, I'm so stupid it didn't occur to me to keep copies of checks the last six months.. and then i realized i probably should have considering not everything was going directly into my bank account like before!

[DSIG]

you'll be fine if you can show the accounting. Whatever you gave your trustee, try to reproduce it and bring your own copy. My trustee required advanced submission of some documents, which for some reason my attorney forget to submit. The trustee gave him the benefit of the doubt at the 341, but I had to cough up my documents from my binder.

[BrokenBrklyn]

I submitted an income statement from the prior 6 months to the trustee that was done by my accountant and a notarized statement from me.
I think moreso I'm worried about the invoices out at the time and the money received since..

[DSIG]

if your trustee asks you about any other income then you can offer up what you have. If he doesnt then those things are not important to him. For some reason, the 6-months of income prior to filing seems to be what most trustees use, not what is forecasted or projected. I received a small employee of the quarter bonus which I forgot to list and which my attorney advised not to revise the schedules to list. Its not a steady source of income, thus not important. Are the invoices considered a steady source of income? Or just, unanticipated? At the time of filing, you did not have that information so how were you able to represent it on the schedules? I think the trustees know that things may change from the time you file to the time you report to your 341 meeting. Its not as if you won the lottery.

[BrokenBrklyn]

It's always unanticipated. As of Nov 1st about 4000.00 was expected at some point I was just unsure as to when.. I didn't expect it all to come in at once.. Some of it I wasn't expecting until at least Feb.

So if he does go off of this income at all, he can take 10% of it.. so like 400.00 which I don't have right now at all..