I filed for Chapter 7 bankruptcy about 15 months ago, using Upsolve.org. My case was discharged, but it’s not permanent yet because the trustee is waiting for my tax return to determine if I owe any money. I received a few thousand dollars back, but the trustee has filed a motion to claim my two vehicles for auction to pay creditors. I used some of my tax refund to buy a work vehicle. The trustee is now hiring an attorney to pursue the tax return issue. What should I do to mitigate this situation?
First of all, make sure you provide the tax return information as soon as possible. The longer you delay, the more complicated it could get. Even though you’re worried about the vehicle purchase, transparency is key here.
@Graydon
Thanks for the advice. I’ll send the info immediately and hope for the best.
I’ve been in a similar situation. What helped me was explaining that the vehicle was necessary for work. Document everything about how it impacts your ability to earn a living. That might help the trustee see it as a valid expense.
@Reese
That’s a great idea. I’ll make sure to document everything clearly. Thank you!
It’s important to consult a bankruptcy attorney at this stage. They can help you understand your rights and possibly negotiate with the trustee on your behalf. Even if you filed pro se, having professional help now might make a big difference.
@Farley
I wasn’t planning to hire a lawyer, but I see the value now. I’ll look into it. Thanks!
Don’t panic. If your state allows exemptions, you might be able to protect the vehicle from being seized. A bankruptcy attorney can help evaluate whether the vehicle is exempt.
Brooke said:
Don’t panic. If your state allows exemptions, you might be able to protect the vehicle from being seized. A bankruptcy attorney can help evaluate whether the vehicle is exempt.
I wasn’t aware of that. I’ll definitely check with an attorney about exemptions.
Transparency is key! The trustee might be understanding if you explain the necessity of the car for work. Just make sure to be honest and provide all the information. It could help avoid worse outcomes.
@Ira
I’ve been so stressed about this, but I’ll follow your advice and be honest. Thank you for your help!
I appreciate all the advice! I’ll act quickly and try to mitigate the situation as best as I can. I’ll also look into hiring a bankruptcy lawyer for help.