QUESTION

Filled Chapter 7.At the 341 meeting trustee objected to a backhoe we sold 2 months before Bankruptcy used business. Sold for $26000 what can we deduc

Asked on Jun 08th, 2012 on Bankruptcy - Colorado
More details to this question:
What are things we could have purchased with that money or pay off with it so we do not get it taken away from us?
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1 ANSWER

Bankruptcy Attorney serving North Andover, MA
2 Awards
After filing bankruptcy, you can not do anything to affect its legal status. Upon filing bankruptcy ,the cash proceeds belong to the bankruptcy court to the extent you can not claim them as exempt .   If it was before , there are many things you could have done but there is no point dwelling on the past.   You have two options at this juncture. I have often used both when I have been successor counsel in these type of situations. The first is to amend your exemptions so that you can protect as much as you can. Second, you may be able to convert to Chapter 13 and pay the money over five years. I have found if you agree to turnover to the Chapter 7 trustee sufficient funds to cover his fees and expenses, the recognition that the Chapter 7 trustee is just doing  his job and is entitled to get paid, not withstanding your wish he did not his job so well,  is appreciated and it will increase the likelihood of them not objecting to conversion
Answered on Jun 11th, 2012 at 12:56 PM

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