Attended 341 meeting yesterday

[smoothdaddy]

I filed chapter7 on 09-16-1010, attended 341, on 10-22-2010. The trustee stated that since im not a resident of Missouri I cant use their exemptions. (I filed in Mo). Im a resident of Alaska. So I have 10 days to ammend the schedule I. I filed pro se? My ?? is if I dont have a lien on a vehicle, still making payments can I list it as an exemption?

[justbroke]

I'm going to say something that may be received wrong, but when you have assets and you have issues with the exemption scheme -- in order to protect those assets -- I never recommend filing pro se.

Having wrote that, you have not provided enough information to determine which exemption scheme you should be using. If you haven't live in Missouri long enough, then you use the place within the last 2 years where you spent most of the time. If you live only in Alaska prior to Missouri, you would use Alaska, if and only if Alaska allows a non-resident to use their exemptions. Otherwise, you must use the Federal Exemptions in 11 USC 522.

I know it sounds confusing, but even "some" attorneys have trouble with this issue when the person has moved and is not entitled to the exemption scheme for the State (venue) in which the petition is filed.

The first is to figure out what is your proper exemption State (Alaska, maybe). Second, to figure out if the exemption State that you should be using, actually allows a non-resident to use that exemption scheme. Third, to find the right exemption statues and re-do your Schedule C.

[ryan]

The first is to figure out what is your proper exemption State (Alaska, maybe). Second, to figure out if the exemption State that you should be using, actually allows a non-resident to use that exemption scheme. Third, to find the right exemption statues and re-do your Schedule C.

THats a very useful, and I'll bet seldom understood, technicality. For instance, I had just assumed if you recently moved you used the prior state's exemptions. ...good to know, JustBroke!

[justbroke]

Yes, not all States allow the exemptions to be used by a "non-resident". This is why Bankruptcy law is tough to practice. It is different in each State because the Bankruptcy laws must co-exist with the underlying State bankruptcy and non-bankruptcy laws! This intersection of the two is what causes a great number of contested matters in the courts between debtor-attorneys and the UST/Trustee.

If a State bankruptcy exemption law reads that it is for "any resident of this State", then that automatically precludes it from being used by someone who "just" changed domicles to another State. Then the affect of being "too" new to the new State means you can't use that State's exemption scheme either.

Then it's back to the Federal Exemptions as the catchall. Sometimes that's not a bad thing.