Trustee objection to property claimed as exempt---help!

[LCozy]

Had my 341 on 6/19 in Washington State...Trustee had many questions for me, cuz ex-boyfriend called in to say many untrue things about my assets...anyway, I got through that ok. At the end of 341 he said he'd have to send a real estate agent out--he almost said it under his breath. I told him that I had 2 CMA letters from real estate agents and I left him with those. On 6/20, pacer showed " ...trustee is investigating the existence and location of property of the estate not subject to exemptions or security interest." Then I got an official letter from him.

1st question, did I do my exemption claim correct?
Description of property--my address
Statute Cited-- RCW 6.13.030
Exemption claimed--125,000
Petition value--500,000
Trustee estimated Value--Pending trustee determination

I owe 562,000. Really don't think value could be higher than 687000. RE agents thought 450-500,000. Tax assessment is 437,000.

Here is the rest:
The Trustee is objecting, in part, to preserve his rights to object pending receipt of more information about the debtors' assets.
The Trustee is also objecting to any attempt to claim an exemption which is in excess of the value allowed by federal or state law where circumstances require more time or information to make a final determination.
the Trustee objects to the exemption of any property where no exemption is permitted under federal or state law.
The Trustee objects to the exemption if or when the actual value of an asset exceeds the value given by the debtor.
The Trustee objects to the exemption in any asset if the debtor has failed to provide information or documentation to the Trustee or has failed to cooperate with the Trustee regarding the investigation of the debtor financial affairs or has concealed any property.
The Trustee reserves the right to assert any other basis for an objection regarding any exemption or otherwise amend his objections to any exemption as may be determined appropriate at a later date or to set the Objection for later hearing.

Freaking out this Friday night!!!!

[justbroke]

Trust me when I say this... Panel Trustees, the one you see at the 341 Meeting and in charge of liquidating the Chapter 7 estate, typically don't like to "fool" around with cases where there is no money. The Trustee thinks that your property is worth more. That is all the Trustee is saying. It's too hard to speculate, because they seem to only be questioning your valuation. Are you surrendering the property?

Let the Trustee determine the value and then decide what the Trustee wants to do. I can't tell what the Trustee is specifically looking at, and it may be standard in your area for the Trustee to actually check the records and determine a.) ownership, b.) value, and c.) right to claim a homestead exemption!

I assume that you have always lived in Washington State and are entitled to the homestead exemption -- and have filed the appropriate claim with the State to declare your residency your homestead.

[LCozy]

I am not surrendering the property. I'll check into the filing with the state to declare my homestead...I didn't know to do this. Hope I haven't really scuttled this.

[justbroke]

I am not surrendering the property. I'll check into the filing with the state to declare my homestead...I didn't know to do this. Hope I haven't really scuttled this.

Look at RCW 6.13.040 on "automatic" homestead declarations. It's automatically homestead if you occupy it as your primary residence. Perhaps the Trustee sees something or a technicality.

[LCozy]

Thanks, I just think that ex boyfriend is blowin in the trustees ear. Ex is believable too! Bastard.

[justbroke]

Well, they must look into all allegations. Usually, disgruntled family members, neighbors, even ex's are the best place to find "hidden" assets and money. Trustees don't take the allegations lightly.

[AngelinaCat]

We had an Enemy that anonymously tattled many untrue things to our trustee, so we were scrutinized more than normal. Also we made many unwise mistakes in the course of our BK both before and during it, due to lack of proper preparation by our attorney. She assumed we knew many things that we did not, then screamed at us after the fact. *Sigh*

[LCozy]

So I have not seen anything more from my Trustee after he objected. He has not contacted me for more information and I do not see anything in Pacer that shows he has made a final determination. What should I be looking for? Shall I contact him to find out? Do I sit and wait? Does he have until 60 days after 341 to file for a hearing? It will be 60 days on Aug 19.

I did notice at the top of my pacer it now says Asset--yes. (its possible it was always there and I did not see it before). Everything should be exempt that I have. Does that mean that he has not accepted my exemptions or what? Just starting to panic again! ugh!

[justbroke]

So when you say he objected, do you mean that he told you he is going to object, or did he actually file an Objection to Exemptions (which would be in PACER)?

For objections to exemptions, the Trustee only has 30-days from the concluded 341 Meeting to file it with the court. If it's been more than 30 days from the concluded 341 Meeting, then the Trustee can't object to the exemption.

[LCozy]

He objected the next day after 341. It was filed in Pacer. But there has been nothing else from him. The objection says he wanted to check out more fully the value of my residence which I am retaining. He also is preserving his right to object to all of my exemptions pending receipt of more information about my assets.

He has not asked me for any more information about my assets. So if he does not ask me, shall I ask him?

[justbroke]

Seems strange that it has been over 45 days and nothing has happened. Have you responded with an Opposition to the Objection? Or, are you just waiting to see what the Trustee decides?

Since you are pro se, you need to take the initiative. You could call the Trustee or file an opposition claiming that the Trustee hasn't actually claimed that ANY exemption is wrong and that the court should rule on the original objection. That might "force" the issue to the court.

If you were really trying to protect actual equity, you may want to see if you can consult with an attorney on the issue. I do not give out any advice on exemptions specifically because you could lose property with the wrong advice -- besides, I am not a practicing attorney.

Now that nothing has happened in 45 days or so, I'm thinking that objection was just smoke since it pointed to no specific exemption claimed. You'd expect it to read something like "objection to claim of exemption in homestead under RCW XX.XXXX". To me, it reads that it's just generic "I object" with no basis! The Trustee has the burden of proof.

I will say, though, that the timeline for the Trustee to look for assets and make other determinations related to assets (and closing) are a little more flexible. I suppose that the Trustee may think that you have hidden assets and the Trustee is "looking" for them. Your ex's comments may have led the Trustee down this path and the generic objections to exemptions may be for any discovered assets that you didn't schedule.

[LCozy]

He did say in the objection "the Trustee is hereby objecting to all of the Debtor's exemptions for the reasons more fully stated below: Description of property (my actual residence addess),
Statute Cited, RCW 6.13.030, Exemption Claimed 125,000, Petition Value 500000, Trustee's Estimated Value, Pending Trustee Determination

So Since I had not seen a determination of his value I am wondering what course to take.

I do not want to force this to court. I do not have $$ to hire attorney.

Thanks for telling me about the Opposition to the Objection. I will look into that tomorrow and probably call the Trustee.
Thanks again and Goodnight!

[justbroke]

Okay, that makes more sense that it was specific. I suppose that the Trustee doesn't like your valuation or valuation method. Some Trustees don't like CMAs and prefer and actual appraisal. Unfortunately, the Trustee needs to pay for an appraisal and perhaps that's the holdup.

You may still want to oppose the Trustee's objection to the exemption. You are entitled to an exemption if that's your homestead. Perhaps the Trustee is just objecting to your valuation and not the actual exemption.

[LCozy]

justbroke, 4 more days until my 60 days are up. Pacer says awaiting discharge. There has been no hearing set by TT about his objection to my exemptions. Do you know if TT has a time frame in which he has to do something with his objection?

[HHM]

Note, the discharge does NOT end the investigation of the assets. Discharge simply discharges you from your debt. A case will stay "open" for the trustee to liquidate assets and that case can stay open for months and sometimes years after discharge.

You need to check your courts and (judges) local procedures. My sense is, unless you file an opposition, no hearing will be set. The trustee will simply keep the case open until he gets his valuation. And actually, the trustee can sit on his objection. So long as the objection itself was timely filed (and even if it wasn't, if you didn't object, the court will not usually on its own, dismiss the objection). Keep in mind, as a pro se debtor, no one is on your side in the BK system. The trustee is against, the court clerk cannot give legal and procedural advice, and the judge is simply an arbitrator. The burden is on your to LEARN the rules of the game. And I hate to say, based on reading this thread, it sounds like you are woefully under prepared.

My speculation is that the trustee is simply objecting to preserve his right to keep the case open, and because you are a pro se debtor. After all, you are pro se with a 500,000 house. The picture your petition probably presents is of someone who was, at some point, successful, and is now filing BK without an attorney? What are you trying to hide? Doesn't really add up, so the trustee is letting his suspicions play out.