The Trustees Meeting

It was a very interesting experience. I arrived to the big bad city where my Trustee hearing was to be held about an hour early. Remember, I have turned into a country bumpkin, cities are not places I go to on a regular basis anymore, concerns about traffic, finding parking, etc made me leave home really early. I live in a town with just as many cows as people. I used to actually live in this city (about 19 years ago for about 13 months) so I was sort of familiar with it. I was nervous; I did not want to be late.

I got a cup of overpriced coffee (the local Dunkin Donuts was nasty looking) from a little coffee shop around the corner from the building I was to have my hearing in. I walked around, sat for a bit on a window ledge in the sun and tried not to imagine the worst. I tried not to break down and cry. I really felt alone.

My mind was racing, what questions would the Trustee ask? Would any of my creditors show up and dispute my petition? Would I lose my house and my retirement account? I had no idea and listening to the cases before mine, I was a bit panicked.

When you file for Bankruptcy, you are called a Petitioner. Several of the Petitioners had creditors show up looking for money, answers, anything. One couple were declaring bankruptcy because their business went under, yet the Trustee had a bunch of questions, what happened to funds when you refinanced your house, why do you have another business that has some income and expenses, why did your brother buy you out, who owns the new company,what exactly did the bank take, what do you really owe? Three creditors (including the bank in question) were there to find out where the money was. The bank attorney was annoyed; he even wanted the old phone system from the now defunct company. He was out for anything he could get. The Trustee had lots of questions, to me it looked like these people were trying to hide assets and I think the Trustee had the same doubts as well. That is a big No No in the Bankruptcy world.

One Petitioner had filed Bankruptcy 10 years ago and was filing again. The Trustee had a lot of questions for this Petitioner about retirement accounts, property owned, businesses and pretty much said to that person, see me in a month with these questions answered. Another Petitioner had her meeting in less than 2 minutes, literally, less than 2 minutes. The Trustee ran down his list of questions and she was out the door.

These meetings are held in a large room at a conference table. Pretty much whatever you say and discuss is open for anyone to hear and people are in and out of the hearing room during each session. It's really public, but then again, Bankruptcy becomes public knowledge and is part of the public record.

I was nervous about what was going to happen and it did not make me feel any better that when the Trustee took a break, he had a file of Petitions on his desk. Some very tall attorney looking person took a stroll up to the table while the Trustee while was out of the room, and took a look at the list read the list and nodded. Was this a creditor of mine, was this someone to contest my case? Actually no, it was none of the above, but my mind and my heart were racing at this point.

My attorney showed up at 10:15 for my 10:30 hearing. We talked briefly, my attorneys only comment was about my jewelry (no one mentioned it to me earlier) and my HSA. He said the Trustee might ask about them (which he did).

As I discussed in my previous post, the Trustee only had three real questions for me about my so called "Assets" . His only other question was about why I was filing for bankruptcy. I honestly told him being underemployed and unemployed for several years all added up. He also asked if I wanted to/intend to keep my house and I told him I really wanted to keep my house. More than anything, I wanted to keep my house. I kinda wonder if he was actually listening to me (despite the fact that the entire session was being tape recorded.)

Once I answered the questions, we were done. I spoke to my attorney after the hearing and said, What's Next? He said, take your on line course, get your jewelry appraisal and that's all she wrote. He was more concerned that he might have a parking ticket as he parked at an hour only parking meter (I splurged on the parking garage, cost me $8 total).

What happens now? I take my jewelry to be appraised this weekend, I take my on line course this weekend and I send documentation of both to my attorney and the court and I wait another 60 days.

I am officially declared Bankrupt until it is discharged and that projected date is December 16, 2007. I can't apply for any credit until my Bankruptcy is discharged, that's ok by me, all I want to do for the next few months is to put my life in financial order, get an emergency fund up and running, work on paying down my student loan, work on saving for a new car. If for any reason I win the lottery or get an inheritance or some other huge lump sum of cash within the 6 months from the date of my filing I am to immediately contact my attorney and the Trustees office. Since I don't have any relatives who are planning on leaving me oodles of money in their wills and the most I've ever won in the lottery was $75 on Powerball, I'm not worried. If I won the big jackpot, I'd be very happy to pay back all my creditors, very happy to pay them. I can them move on with my life with a clearer mind.

I get to keep my house as long as I pay my mortgage on time every month and keep insurance currant on it. I get to keep my house (and for the record, I paid my October mortgage on October 2nd).

For all intents and purposes, the only debts I currently have now are my mortgage ,my student load and my current bills. I don’t have a car note, I don't have credit cards, I made an effort prior to my filing to pay off as many other debts as possible (medical, loans, etc). I will need to find a way to get a new car next year, my current vehicle has 224,000 miles on it and is starting to show it's age. Despite being paid off, it will need to be replaced.

My plans are to open an ING account and use that as my car fund account. I just took on a contract position taking photos of properties for a mortgage company and it looks like I will be photographing two to five properties per week, it's not much, but its anywhere from $45 to $75 a week that I can earmark for my car fund. $180 to $300 per month all for taking photos of houses. I

I don't make that much money and the money I do make will have to be carefully earmarked. I am working on my new household budget. I am working on my list of needs and wants. I am going to take a small break and figure out how to find a second job that will actually pay me something, be close to home and let me take care of my animals.

The only unplanned for post filing splurge is I've booked myself in for a haircut and color in my favorite salon. It may be my last session there, and the streaks of grey have gotten on my nerves. At least I can start my new life with my old hair color back.

I Can Now Breathe and Move On

I'm officially Bankrupt pending my final on line credit management course and an appraisal on some jewelry.

I am mentally exhausted and will write more later, but the Trustee only had a few questions for me:

1) Why did I open an HSA during my filing period? (Because my work was not paying 100% of my health insurance premiums and this was reccommended to me to help offset medical costs)

2) Can I get an appraisal on my three pieces of jewelry and send to his office, as I was right at/over the personal exemption on jewelry?

3) Was I expecting a tax refund ? (Not as much as last year)

I have three pieces of jewelery that are what I consider "good pieces". My grandfathers gold pocket watch, my mothers diamond/sapphire wedding band and my grandmothers pearl necklace. I explained to the trustee that I used a very old appraisal I had on file and I was not sure if the pieces would appraise out now to the same price. Truthfully, I lost two of the stones in the wedding band and the watch has not worked in years. He seemed to be sympathetic to me as I told him these items were left to me by my now dead relatives, but if I still needed an appraisal done and sent to his office, I would do so.

Other than that, he asked for my bank balance as of the filing date, he said the meeting was over, gave me a sheet on bankruptcy and moved on to the next case. My attorney told me send in the appraisal,take your last class and good luck.

Good luck, I'll need it, that's for sure.

Frustration Factor 2

I called my attorney's office today and finally got a hold of the paralegal doing my filing. She now tells me that she can't accept my faxed copies of items I sent early last week and I need to give her all the originals. Two weeks ago, she told me faxed copies were fine, she never told me the copies did not scan well. Now I totally understand they moved offices last week and moving is difficult enough, but still, she has my home, work and mobile numbers, what the F&(C()?

UGUGHG

I am very frustrated for a couple reasons

1) I used this particular law firm because I have used them in the past. I used the other partner for both my personal real estate transactions and my office has used the firm. No complaints, very prompt, very efficient. Not the case with this attorney and his paralegal in the firm.

2) They were not cheap compared to other attorneys, but I was relying on my past experience with this firm for prompt professional service and telling me what I needed to do and when, that has not happened at all. I can't help myself unless I'm told things.

3) Time is of the essance and time is slipping away. I had the majority of my paperwork into them by the beginning of June. I was told at the end of June/beginning of July that the process was started, but both the attorney and paralegal would be on vacation for 10 days. No problem. I was told all I needed to get to them was my CMA on my house and a copy of my retirement account statement. It did take longer than anticipated to get the CMA, a freind of mine did it for me as a favor and that took a few weeks, but this is just making me crazy.

I feel like I am being stymied at every turn this week. I am desperaterly trying to move forward, make concrete plans and get my life back on track.

The realization here is the court could tell me I need to sell my house, or sell it out from under me (I hope not, I pay less in my mortgage for my small house than most people pay in rent and I can have my dogs), I could be ordered to dispose of my retirement account. I have no other asessts other than those two items.

These things scare me, scare me a lot. When I had my second consultation with said firm, they pretty much assured me that the court would probably let me keep my house as I've been able to afford it, was not behind on my mortgage and my income showed I could keep making the payments. The way this is being handled does not thrill me, impress me or instill any sort of confidence in this whole procedure.

I can't cry, I'm at work, I can't scream, I'm at work. I will probably go home and eat my way through this. No wonder I have to buy new pants.

I feel like it is three steps back and no steps forward this week.

The General Ramblings of The Week

OK, so the plan yesterday was to work on my budget, but I did not. Shame shame on me. I did make a start, I balanced my check book, looked at my incoming cash flow, looked at my outgoing cash flow. At least faced up to it a bit. I just have to plug in the numbers.

I'm waiting for a payroll summary to arrive from my payroll department. Then that goes to my attorney (or I should say, his paralegal) and then I sign the forms. I did look at my ever growing file on the bankruptcty and realized I have to take classes. I think I can do them on line, so if that is the case, I'll try and start this weekend. I want to just get this done and over with.

What has been frustrating about this whole experience is I feel like I'm being told a bunch of things I need to do sort of after the fact. Hum, I thought I took very good notes in my two meetings with the legal office. Guess I did not or was soo overwhelmed I did not hear everything. The paralegal must think she is dealing with an idiot.

For those in a money crunch and you don't want to end up where I am. Here are a couple tipsI strongly suggest you do the following things AFTER YOU CUT UP AND SHREAD YOUR CREDIT CARDS.

1) Take a serious look at your credit card balances. Open those envelopes, write down the TOTAL amount owed and the percentage rate. Remember, I told you to organize your files so you can find your bills? This is one reason why.Then take a deep breathe and exhale.

2) If you are not deliquent, call your credit card company and ask for a lower interest rate. Make some phone calls. If you are having trouble paying the minimum, tell them, work with them see if they will work with you. Many will, they'd rather work with you than spend tons of their time and money sending you to collection.

3) If you are deliquent and are having problems, call Consumer Credit Counseling Services. They are a not for profit agency that will evaluate your financial situation and help you set up a repayment plan. Word of warning, these are no nonsense folks, they cut up your credit cards, you pay them, they pay your creditors and if you fall behind with them, you are on your own! Check your phone book for an agency close to you. Make sure they are licensed to do business in your state. I wish I had found them sooner, I did not.

4) DON'T fall prey to these other credit agencies that claim they can help you. Do your reasearch before you committ to any agency. There are agencies that claim they can clear your credit and give you a fresh start within months.

5) Be prepared to give up the extra's in your life, meals out, tons of new clothes, travel, etc. Remember, the goal here is to pay down, pay off your debt and get out of trouble.

6) Find a way to pay off a little extra on the minium balance to each credit card.

7) Keep a running total of what you owe and what you have paid off. Track your progress.

Karyn Bosnak eliminated her debt with her on line grubbling via her web site. Excellent idea, got her on the Today show, a book deal, and she is debt free and donated the money she got from folks to charity as well once she was debt free. I'm four years too late stealing her idea, I'm not reccommending you set up a web site for the sole purpose of getting out of debt, but she does have some excellent tips for budgeting, etc.

DISCLAIMER:The information given here is not to be in place of or in lieu of any professional advice you get from a financial advisor or other legal entity. These are some tips I have researched from other blogs and web sites and are tips based on my own personal experience. They are not the be all end all to financial planning. Every person and situation is unqiue and I strongly reccommend that you seek professional advice when dealing with your financial situation.