How do I know what the Trustee will take?
First remember that the Trustee only wants things to sell. Sometimes, without your debts, you could pay the Trustee to get something out of the Bankruptcy.
At the time of your 341 Meeting, the Trustee will tell you and your lawyer what he wants to do about possessions and property. If he abandons property, you will not lose it to the Trustee in the case. Sometimes the TRUSTEE will want to have items valued. If you have a car that is paid for and not exempt, you may be required to take it to the Auto Auction for appraisal, and if its worth enough, the TRUSTEE may try to have it sold.
Sometimes the TRUSTEE will allow a debtor to make a bid on such items.
IF YOU PAY FAMILY or your favorite bank right before filing your case, the TRUSTEE can get a court order and make them give up the money. This is called a "preference action" and the law authorizes the Court to enforce the Judgment against those people, including taking property, to be sure the money is paid back. Its another reason you cannot try to outsmart the law to protect your friends, because all the tricks have been considered over the history of the Bankruptcy Code, and it won't work!
TRUSTEE policies may differ some from one District to another, so you should find out what the practice is in the District where you reside. The information here is specific to the Western District of Louisiana.
G. Paul Marx, A Professional Law Corporation 337 237 2537
850 Kaliste Saloom Road, Lafayette, La. 70508
NEW LAW- OCTOBER 17, 2005 BANKRUPTCY REFORM ACT
Chapter 7 Topics: THE DEAL THE TRUSTEE EXEMPT PROPERTY
MORTGAGES, SECURED CREDITORS TRUSTEE ACTIONS
THE U.S. Congress and President Bush have authorized us by law to state that as to our Bankruptcy Work at this Law Firm, WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE.