[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?

[Randal French]

You should inform the ch 7 trustee, in my view.  If there was no timely objection to the exemption, and you valued the vehicle and exempted at least $6,000 of value, then the debtors should be free to use the proceeds to replace the vehicle.  If the debtors exempted less than a $6,000 value, I can see the possibility of as problem.  If so, amend the schedules immediately and rely on the vehicles exemption and the exemption for proceeds under 11-606, which is good for only 3 months after receipt of the proceeds.  

The Trustee will likely agree with you or will let you know if there is any reason to hold the funds pending any action by the trustee.  Your facts seem pretty clear cut that the exemption is good so the trustee should not cause you a problem.

Randy French
www.bauerandfrench.com


Bauer & French
Attorneys at Law
1501 Tyrell Lane 1P.O. Box 2730 PBoise, ID 83701-2730
(208) 383-0090 ( Fax: (208) 383-0412
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-----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

The contents of this message and any attachments are protected under the attorney-client privilege and are intended for the designated recipient only.  If you have received this message in error then please delete it and contact Wixom Law Office at (208) 542-5298 immediately.
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