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Why would I owe the Trustee after filing for Chapter 7?

Roy, UT |

We filed Chapter 7 on November 11, 2012. Our bank accounts had $6ish in them, we had 2 accounts. The trustee said we need to turn over our tax refund, $783, which we expected. He also claims that there was $56 in our accounts the day we filed, there wasn't. He is also asking for "wages earned but not received as of the day you filed". Our attorney did not mention anything about this and now the trustee wants $1870.00. We do not have that.

Attorney Answers 4

Posted

You really need to discuss this with your lawyer. That is who knows about your case, has the documents, and who got paid to handle the case for you.

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Posted

How much of these assets the trustee can take is partly dependent on the exemptions (protection) you are allowed in Utah.

Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662. Please be aware that each answer on this website is based upon the facts, or lack thereof, provided in the question. To be sure you get complete and comprehensive answers, based upon the totality of your situation, contact a local attorney who specializes in the area of law that involves your legal problem. Diane L. Gruber has been practicing law in Oregon for 26 years, specializing in family law, bankruptcy, estate planning and probate. Note: Diane L. Gruber does not represent you until a written fee agreement has been signed by you and Diane L. Gruber, and the fee listed in the agreement has been paid.

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Posted

The Utah bankruptcy trustees have recently started asking for "wages earned but not received as of the day" a person files. Since this is new, many attorneys have not know to mention anything about that. You need to talk with you attorney and see if the trustee will take payments or work some other arrangement. I'm sure your attorney can help you work with the trustee.

The items I discussed above are for information and not to be relied upon. You should talk with an attorney.

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1 comment

Diane L Gruber

Diane L Gruber

Posted

In Oregon the Trustee can take 25% of earned by unpaid wages. Standard procedure for all trustees here is to allow 10 monthly payments, which would be $187 per month for you. Surely you have that much, now that all your debts are about to be discharged.

Posted

Discuss with your retained attorney. Property that was not exempted must be turned over to the trustee for disbursement to your creditors.

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