Does the bankruptcy trustee need to abandon an exempt asset on a reopened bankruptcy case?

Asked 7 months ago - Los Angeles, CA

I reopened my bankruptcy to include on Schedules B and C an exempt asset. Does the bankruptcy trustee still need to abandon the asset or is it automatic given that it is exempt?

Attorney answers (4)

  1. Shaye Larkin

    Contributor Level 20

    6

    Lawyers agree

    Answered . The trustee needs to have their opportunity to object to the exemption of this asset - even if the asset is exempt. Because you did not list the asset when your bankruptcy was filed, the trustee did not have that opportunity the first time around. If the asset is truly exempt, in all likelihood the trustee will abandon the asset and your case will close again. This is accomplished by the trustee filing a revised "report of no distribution".

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  2. Robert J Adams Jr.

    Pro

    Contributor Level 20

    3

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    Best Answer
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    Answered . I am assuming it was an oversight and neither the trustee nor the court will want to investigate, the answer is "No."

  3. Richard D. Granvold

    Pro

    Contributor Level 18

    4

    Lawyers agree

    Answered . Because you already reopened your case which was the proper thing to do, your question I will assume you already did file the amended Schedule B and C to list and exempt. Contrary to one answer herein, you can exempt any asset listed, if the trustee wants to object, he can do so..but must do so by a date certain which the rules provide for so he has an opportunity to do so if there is a legal basis to do so (like you intentionally omitted it originally to hide it, etc.). In most cases of good faith, your trustee has no valid objection, and after the time period of 30 days after the amendment is filed, if he did not object, then you can proceed with the exempted property if all exempt to do as you desire. There is NO doubt that after your case is once again closed, then any listed assets are abandoned back to you also as a matter of law. Good luck...and you may want to just wait and see what happens and not have to incur any legal fees..but most attorneys would all state to speak to a good bankruptcy attorney as we want to see and ask about all the facts to make sure you are doing what we suggest once we know all the facts! Good luck.

  4. Michael Glynn Busby Jr.

    Pro

    Contributor Level 19

    3

    Lawyers agree

    Answered . It is exempt 30 days after the final 341. Since you reopened and amended, I would suggest you hire a lawyer. The property as it was not disclosed at first, is property of the estate and non-exempt.

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