Personal Bankruptcy Bk Chpt 7

[hkcon]

hi guys and gals,
I am currently pro se in a bk chpt. 7 where I listed the mortgage as an unsecured non priority debt and exempted the house on my schedule C. The bank filed a proof of claim, which I have objected to, and did not show up at the 341 meeting. At the meeting the trustee asked me about a payment I receive from my dad's retirement account ($1,290.00 a month death benefit), I listed it as income, and he has now sent me a letter requesting that I give it to him since I did not exempt it. I have a couple of questions:

1. what is he paying off with that money? The arrears on the mortgage? I have no other debt. If not that then what?
2. is it now too late to exempt it?

Any help you can give me would be appreciated.

 

[army judge]

Ask the trustee for an explanation as to why he's asking you for the $1200 death benefit.

I don't think that money can be touched or used for these debts.

I don't think those types of benefits have to be declared.

You need to research the BK statutes or ask the trustee.

You can amend anything until it has been finalized.




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[despritfreya]

1. "I am currently pro se in a bk chpt. 7 where I listed the mortgage as an unsecured non priority debt and exempted the house on my schedule C."

Why do you think the lien holder is unsecured? Are you trying to argue some sort of "show me the note" defense. If so, don't hold your breath.

Liens pass through a Chapter 7 unaffected. The lender is secured and will eventually take back its property if you are not paying for it.

2. "The bank filed a proof of claim, which I have objected to."

On what theory did you object?

3. "and did not show up at the 341 meeting"

Irrelevant. Creditors are not required to "show up".

4. "At the meeting the trustee asked me about a payment I receive from my dad's retirement account"

Are you saying you are receiving an annuity from your deceased father's retirement plan? Are you the "beneficiary"? Is there an exemption in your jurisdiction - this is not YOUR retirement plan. You need to find out.

If this asset is exempt you can amend Schedule C. If it is not exempt you have no right to collect ANY of the funds as of the day you filed bk. Every penny needs to be turned over to your Trustee.

5 "what is he paying off with that money?"

In the following order, himself, his lawyer - if he hired one- and then nobody if you do not have creditors. The Trustee does not pay secured creditors and your mortgage holder, assuming it has a valid lien, is a secured creditor. If for some unknown reason it turns out that the mortgage holder is unsecured, then, yes, those funds will go to that creditor. If this asset is not exempt you will not receive a dime of it until all administrative and unsecured claims have been paid in full.

By the way, if this asset is not exempt and you do not turn it over you will be facing severe penalties.


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From what you describe (you state you have no debt but the mortgage) you should never have filed bk. You have a two-party dispute. If the lender's lien is not valid under State law you should have filed suit in State Court.

My recommendation, since it appears you are in over your head, is to find a good bankruptcy attorney fast.