Do I have to return proceeds from the auction of my to the Chapter 7 Trustee?
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Do I have to return proceeds from the auction of my to the Chapter 7 Trustee?
Our chap 7 has been discharged (back in 10/10) but is still open because trustee wants to see our 2010 tax return. We just got a check in the mail from our old lender from our truck that was repoed. The lender wanted us to pay $8000 up front to start making our regular payments again. We told them we couldn’t do that. This was happening while we still were paying them our regular monthly payment and the case was discharged. They repoed it a month ago and now we got a check in the mail from the auction of the truck. We really need the money to help us catch up on utilities and mortgage.
Asked on January 4, 2011 under Bankruptcy Law, Ohio
Answers:
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 13 years ago | Contributor
The answer depends in part on when the truck was repossessed and when you gave them the $8,000 "up front" payment. If it occurred prior to you filing your bankruptcy case then you may need to return some or all of it to the Trustee. This will depend on whether you have any exemptions available under your state's laws to protect it, as well as other factors.
If it all occurred after your bankruptcy case was filed, then there would be no need to turn over the funds to the Trustee.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 13 years ago | Contributor
The answer depends in part on when the truck was repossessed and when you gave them the $8,000 "up front" payment. If it occurred prior to you filing your bankruptcy case then you may need to return some or all of it to the Trustee. This will depend on whether you have any exemptions available under your state's laws to protect it, as well as other factors.
If it all occurred after your bankruptcy case was filed, then there would be no need to turn over the funds to the Trustee.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
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