Questions right after 341

[mack14]

What is the name of your state? IN

I just had my 341 meeting and things went well. I reafirmed (spell check) the house and car and I am able to pay those on time. I was declared a no asset case. Basically I shook the lawyers hand right after the meeting and he was off to another client. What happens now? I know they say in about 4 months you recieve a discharge, but how does the trustee veiw me or my financial affairs now? I have read here before that the trustee can take any "windfalls of $" you recieve in the next 6 months after the 341 (or was it the discharge date?) Anyway, I don't have anything to hide and definetly don't forsee any windfalls of $, but I do have a used car (that was listed in the BK under assests, but exempt) that I was wanting to isell it even before the BK filing, but was told not to by the lawyer due to it looking odd that I may have tried to hide an asset. We aren't talking big money here, I might be able to get 1200 for it. Can I sell it now or should I wait, and if I should wait, how long? I guess my bigest questions are: What can the trustee do now and for how long, and how closely is he watching you? I have kept reciepts for literaly EVERTHING I have bought since the first day I talked to the lawyer and stopped paying the credit cards. It would be nice to stop doing that at some point. Thanks in advance

 

[Ladynred]

Trustees don't watch you, they don't have the staff or the funds.

Once the 341 meeting is done, the next 60 days is the time allowed for creditors to object to your discharge or file complaints. Most never do and on day 61, you get your discharge.

The Trustee likely asked if you were expecting any inheritance, settlements from lawsuits, etc. They CAN go after some 'windfall' $$ for up to 6 months from your FILING date.

I'd wait at least until your discharge to be asolutely certain nothing comes up during the next 60 days before selling the car. I think is pretty safe to stop saving every single receipt

 

[BK4ThisDummy]

Receipts

Question: Did the trustee actually ask to look at any of your receipts? Just curious...

 

[maurand]

Prior to my 341, the Trustee sent me a letter asking that I have all sorts of documentation ready for him at the meeting(bank statements, tax returns, vehicle titles, etc...) and never once asked to look at them at the meeting. He didn't even ask me to turn them in to him after the meeting. Also, at the advice of my attorney, I spent down about $2500 from my savings account on "neccesities" before I filed and that wasn't questioned either....

 

[mitgr5200@yahoo]

spending down, huh?

spending down.....another phrase for stealing, it sounds to me. Obviously you are not only financially irresponsible, but morally as well

 

[chris7]

I am not sure of the previous posters financial and moral history, but clearly they feel comfortable standing in judgement on the little information available. Our attorney also gave us the "spending down" advice. We took that to mean that the months following bankruptcy would be very lean and to plan accordingly by purchasing the necessities like food, diapers, medications.... Many "do it yourself" bankruptcy books also give advice along similar lines. On the whole, I think this board is phenomenal in the help and guidance it gives people going through a tough time in their lives. I have no problems with being blunt and telling it like it is, but that last post was just flat out holier than thou and judgemental.

 

[mack14]

IN

No, the trustee never asked to look at any reciepts, titles or anything. I was just told at the initial meeting with the lawyer to keep records. I think it was because of a tax return I had received and it was spent on catching up the house and car and then groceries.

 

[Shrike1070]

Holier than Thou

Just a heads up for you all that there ARE shills and other representatives of collections agencies and collection lawyers who do frequent and post on this board. Most of the time you can spot 'em from a mile away.

Most are able to articulate important points (from their side of the fence) in a courteous manner, and then there are others like the above poster who has a serious axe to grind and has no problem shooting off a troll bait-type post.


Just ignore 'em...

 

[bigun]

Spending down is not fraud. It means that you are taking assets that are not exempt and converting them to items that are exempt. {wouldn't use the word assets when talking about food, medical expenses, auto or home repairs,etc.} Or, spending on resonable expenses like, medical exam, new glasses, dental work,etc. This is why not using a lawyer may well cost you a lot of money if your state has some pretty generous personal exemptions.
And of course, you want to be sure to pay your lawyer!

 

[maurand]

to mitgr5200@yahoo: a pretty ignorant response. You want "stealing" ? How about credit card company's deceptive lending practices, outrageous interest rates, tricky billing scams and predatory solicitation? My case hasn't even been discharged yet and I'm already receiving solicitations from banks and CC companies to open new accounts or apply for car loans. Ah, the promise of the new disgraceful BK laws are simply too much for some to ignore.....

 

[jadedone24]

AMEN TO THAT maurand

I'll second that!

 

[mitgr5200@yahoo]

Legal and/or suggested by a lawyer has nothing to do with moral.

When you "spend down", you are intentionally spending money that you know you owe to someone else. I can make comments, consider it judging if you want, if that helps you feel like more of a victim. Of all the people I know that have filed banckruptcy, all of them have filed because of irresponsible spending. They get into trouble, and think it's OK to leave others holding the bag. These are the type of people I am referring to. Well I don't think it's all right....so shoot me! They knew it was happening, and did nothing to stop themselves. While I realize that there are people who have had to file because of high medicals bills, or some other understandable circumstance, the vast majority of people seem to file because of their own stupidity or ignorance. I only spend the money I have, why should I have to make up someone elses shortfall? I do without many things, because I don't have the money. Blaming the credit card company's for your problem is pathetic. It's always someone else's fault? Do the credit card companies hold a gun to your head in your state?

To restate: some people have a legitimate claim. I have no problem with that

It is irritating to me when people just spend, spend, spend and then walk away from their obligation. Maybe these are the people that are running our government, huh?

go back and read my post, I did not mention fraud!

 

[rockobuster]

OR

If the trustee did not look at your receipts that he had asked you to bring, then what did he look at? What questions did he ask you?

I'm asking because I have my 341 meeting in 2 weeks and I received a form letter from the trustee requesting bank statements, retirement accounts, titles, etc., and thought he would look these over at the meeting.

 

[Ladynred]

Pretty standard letter. He MIGHT look at those things at your 341, then again, he may not. Many people have taken all that stuff to their 341 and the Trustee never asked to see any of it !! The point is, be prepared with what he's asked for, if you don't need it great, if you do, you're prepared.

 

[rockobuster]

I was wondering if I had been contributing 10 - 20% of your paycheck to my state retirement system, via payroll deduction, and I filed chapter 7, would the trustee consider this amount (currently $575 a month) disposable income? This retirement account has penalties for early withdrawl and has been going into my retirement account for 8 years.

If so, would this amount possibly send me into a chapter 13, at which time the US Trustee would have me discontinue contributing to my retirement account, and send this amount (and the $300 currently considered disposable) to my creditors for 3 - 5 years?

I'm asking this question because I don't know if my attorney listed the $575 as disposable income? Even if he had, my credit card bill payments were $2,200 a month (minimum amount) and if the $575 was not be taken out of my pay check, along with the $300 disposable, I am still $1,325 short each month.

Do you think this would only matter in a chapter 13 case?