[CLBS] If the trustee does not object ot a claim of exemption within 30 days after the 341 meeting isn't the property automatically deemed debtor's property to do what he will with it?

[Jeremy Gugino]

You should always inform the trustee of information like this.  You would be
well served to get confirmation from the trustee that they are not making
claim to this money before advising your debtor to spend it.

-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Rocky Wixom
Sent: Friday, June 14, 2013 11:26 AM
To: clbs
Subject: [CLBS] If the trustee does not object ot a claim of exemption
within 30 days after the 341 meeting isn't the property automatically deemed
debtor's property to do what he will with it?

Question:



Client filed a chapter 7 bankruptcy case and properly exempted a vehicle
worth under $7,000. Approximately 45 days after their 341 meeting, debtor
was in an accident whereby the vehicle was totaled.
Insurance company has informed him he will receive a check for around
$6,000. Are these proceeds property of the bankruptcy estate? At this point
in time what is my obligation, if any, to inform the trustee?
Can I ethically advise my client to use the $6k to got get another vehicle
since they are driving a rental car they must return shortly.

If the trustee doesn't object to an exemption isn't the property deemed to
be the debtor's property thereby excluding as property of the estate?


--
Rocky L. Wixom, Attorney at Law
(208) 542-5298

Wixom Law Office, Inc.
PO Box 51334
Idaho Falls, Idaho  83405

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