Trustee Objection to Schedule C Exemptions

By Beverly Bird

When you file for bankruptcy, Schedule C is the part of the paperwork that helps provide you with a fresh start. It lists the exemptions you're claiming. These are dollar values in property you want to keep; by exempting them, you prevent the trustee from selling them to pay off your debts.

When the Trustee Objects

When you file for bankruptcy, the trustee will review your Schedule C. Your case is then scheduled for a 341 hearing, which is also called a meeting of creditors. The trustee may ask you some questions about your exemptions at the hearing. He has 30 days after the meeting to notify the court that he objects to one or more of them. The objection is then set for a hearing and a judge will decide whether to allow the exemption.

Why the Trustee Might Object

The trustee might not object to an exemption itself, but rather the dollar value you're assigning to certain property. For example, if your state offers a $4,000 automobile exemption and you claim that your late-model luxury vehicle is only worth $4,000 so you can keep it, this might raise an eyebrow. Or, you might have used your homestead exemption to protect a residence you don't actually live in. The trustee is paid a percentage of the value of the property he sells, so he might put your Schedule C under a microscope to make sure you can legally keep every asset you're claiming.

Get a free, confidential bankruptcy evaluation. Learn More
Get a free, confidential bankruptcy evaluation. Learn More
How to Fill Out a Bankruptcy Schedule C
 

References

Related articles

Three Options to Protect Your Car in a Bankruptcy

If you're facing Chapter 7 bankruptcy, you may lose your car. However, depending on where you live and your personal circumstances, you may be able to keep your car even if you file Chapter 7. In other instances, filing Chapter 13 may be a better option if you want to keep your car.

Do I Have to Reopen an Asset Chapter 7 for an Unlisted Creditor?

Bankruptcy can give you a fresh start financially by erasing certain debts, but federal bankruptcy law gives certain protections to creditors, too. Under Section 523 of the U.S. Bankruptcy Code, you are required to give notice of your bankruptcy case to all your creditors. If you forget to list a creditor, you may have to reopen your bankruptcy case if you had assets in your bankruptcy estate that could have paid that creditor.

Can a House Be Sold If You Are Going Through Bankruptcy?

Your house is usually your most valuable asset, especially if it is worth far more than you owe. Depending on the type of bankruptcy, you might have the option to keep your house or voluntarily sell it. On the other hand, the court-appointed bankruptcy trustee may force the sale. However, bankruptcy may even allow you to keep your house if you are facing foreclosure.

Bankruptcy

Related articles

What Does a Chapter 7 Statement of Intention Mean?

Unlike Chapter 13 bankruptcy where you repay most of your debts to your creditors, most debts are forgiven under a ...

What Happens If I Don't Pay My Chapter 7 Overages?

Under Chapter 7 bankruptcy, your assets are valued by a court-appointed trustee and sold to pay your creditors. You are ...

Submitting Taxes to a Trustee After Bankruptcy in Florida

When you file for bankruptcy in Florida, you are required to provide the bankruptcy trustee with a copy of your latest ...

Can They Take My Car in a Private Bankruptcy in the US?

The vast majority of consumers file for bankruptcy under Chapter 7 or Chapter 13. Chapter 7 bankruptcy allows the court ...

Browse by category
Ready to Begin? GET STARTED