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Trustie challenge to exemption

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    Trustie challenge to exemption

    After my 341 meeting...I received a letter from what appears to be my trustee's lawyer challenging exempt money that was in our account when we filed. I mistakenly cited the wrong state law for the exemption (I cite the correct overall law...but referenced the wrong sub paragraph). The law I think covers me basically says monies from insurance claims for otherwise exempt property is exempt. I deposited the check from the insurance claim (stolen car) a few days prior to filing. Do I simply go to court and explain this or do I need to amend my filing to reflect the correct law that covers the exemption? I called the trustee and asked what he thought I should do, but haven't heard back yet.

    Thanks all.

    #2
    The Trustee can't give you legal advice. This is the downside of filing pro se. You will need to amend your Schedule(s), pay any appropriate filing fee (could be $26 depending on what is changing), update the summary schedules and file them all with the court. You will definitely need to serve this amendment(s) on the Trustee. Then, this will almost definitely go to a hearing. You will need to present evidence that the proceeds are exempt.

    Since you are saying this was for a vehicle which would otherwise be exempt, make sure you claim both the vehicle exemption and the insurance proceeds exemption for "otherwise exempt property". While I won't list the actual statutes, you should be able to list BOTH the statute for the vehicle exemption and the statute for insurance proceeds of "otherwise exempt property"
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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