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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 16006
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Hello Wallstreet. Another question

Customer Question

Hello Wallstreet. We went to our hearing yesterday. The trustee asked the question if anyone owes us money and I told her if you count Accounts Receivables for our business, then yes. The Lawyer said I need to go back and find out what my Account Recievables were through Aug 22 (the date of our filing). Anyway, I got to thinking last night and I want to ask you if Accounts Recivables counts as a an assest since we weren't paid yet at the time of filing or does it count as income? The Lawyer made it sound like it will be counted as an asset, but I'm not sure.

Submitted: 11 months ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 11 months ago.

WALLSTREETESQ :

did you file a Chapter 7 or 11?

WALLSTREETESQ :

If you filed a chapter 7 the accounts receivable could be considered an asset, and the trustee can take the money to pay creditors. However, if the amount is small or limited, the trustee will abandon it, and allow you to be discharged, Section 544(a) of the Bankruptcy Code allows the trustee to abandon any property of the estate that is burdensome to the estate or is of inconsequential value and benefit to the estate.

WALLSTREETESQ :

If you receive the discharge, and the trustee abandons the accounts,

WALLSTREETESQ :

you can receive the accounts,

WALLSTREETESQ :

if the money is received after 180 days,

Customer:

Ok, that sounds good. I was so nervous yesterday that I thought I was going to cry. When she asked me about people owing us money, I thought she was talking about right then and there but she was talking about as of the time we filed. At that moment we have people who owe us about $5,000 or so but cost of goods has be deducted before it would be an asset. The Lawyer was worried we would go over our exemptions so he was trying to get us to get an estimate of the cars from carmax to see if we could bring the vaues down.

WALLSTREETESQ :

With that small amount, I would not worry, you do have to show the trustee what happened with the money and any deductions,

WALLSTREETESQ :

Bank statements, and a letter showing what was done with the accounts,

WALLSTREETESQ :

and the expenses, it should not be a major issue.

WALLSTREETESQ :

Good luck, and if you have any further questions please do not hesitate to ask.

Expert:  WALLSTREETESQ replied 11 months ago.
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Expert:  WALLSTREETESQ replied 11 months ago.
WALLSTREETESQ : With that small amount, I would not worry, you do have to show the trustee what happened with the money and any deductions,
WALLSTREETESQ : Bank statements, and a letter showing what was done with the accounts,
WALLSTREETESQ : and the expenses, it should not be a major issue.
WALLSTREETESQ : Good luck, and if you have any further questions please do not hesitate to ask.
Customer: replied 11 months ago.

Oh, also. My lawyer said that we have $12,500 each for exemptions, which totals $25,000. I don't know if you remember our earlier conversations or not, but I do not like my Lawyer so I don't trust what he is telling me. Anyway, I thought the exemptions for Maryland were $22,000 for a couple? Can you tell me?

Expert:  WALLSTREETESQ replied 11 months ago.

From my research, I see a $22,000 wildcard exemption if doubled, the $6,000 cash could be used for the accounts, as it would be doubled to $12,000

http://www.thebankruptcysite.org/exemptions/maryland.html

Maryland’s wild card exemption allows bankruptcy 7 debtors to exempt up to $6,000 in cash or other property AND up to $5,000 in personal property. Either or both parts of this exemption can be applied toward vehicles or any other personal property, including boats and big-screen TV’s, for a total of $11,000. Couples may double both for a total of $22,000, though to apply that amount to a single item the item must be jointly owned.
Customer: replied 11 months ago.

Oh my goodness. So where in the world he is getting 12,500 each then? I even tried to correct him and tell him it was only $11,000 each, but he argued with me.


 


 

Expert:  WALLSTREETESQ replied 11 months ago.
Unless the exemption was raised some time this year, I do not see any increase from what is listed above. He may be adding some unused exemptions as well.

Good luck, either way your $5000 should be protected.

If satisfied please provide us with positive feedback.

Customer: replied 11 months ago.

What do you mean he may be adding some unused exemptions?

Expert:  WALLSTREETESQ replied 11 months ago.
he may be adding some exemptions from the wages


Below is a list of commonly used Maryland bankruptcy exemptions. Unless otherwise indicated, all references are to the Maryland Code Annotated.
Homestead
Up to $21,625 of equity (if your home is worth $120,000 and you owe $60,000 on the mortgage, you have $60,000 of equity in your home) in any real property (house, condominium, or co-op) that you use as a residence. The Maryland homestead exemption may only be claimed once every eight years and married couples may not double the homestead exemption. Md. Code Ann., [Cts. & Jud. Proc] § 11-504(f)
To learn more, see The Maryland Homestead Exemption.
Personal Property
Up to $5,000 in tools of your trade, including clothing, books, tools, and inventory. Md. Code Ann., [Cts. & Jud. Proc] § 11-504(b)(1)
Professionally prescribed health aids. Md. Code Ann., [Cts. & Jud. Proc] § 11-504(b)(3)
Appliances and furnishings, clothing, pets, and books for use by you or your dependents. Md. Code Ann., [Cts. & Jud. Proc] § 11-504(b)(4)
Burial plot. Md. Code Ann., [Bus. Reg.] § 5-503
Maryland does not have a motor vehicle exemption, but you may use your wildcard exemptions to protect equity in your vehicle.
Public Benefits & Support
Court-ordered child support payments. Md. Code Ann., [Cts. & Jud. Proc] § 11-504(b)(6)
Alimony, to the extent that wages are exempt from attachment under § 15-601.1(b)(1)(ii) or (2)(i) of the Commercial Law Article. Md. Code Ann., [Cts. & Jud. Proc] § 11-504(b)(7)
Public assistance benefits - Human Services § 5-407(a)(1),(2)
Retirement Benefits
ERISA-qualified benefits and IRAs. Md. Code Ann., [Cts. & Jud. Proc] § 11-504(h)(1)
State employees retirement accounts and benefits. Md. Code Ann., [State Pers. & Pen.] § 21-502
Wildcard Exemptions
Cash or property up to $6,000 in value. Md. Code Ann., [Cts. & Jud. Proc] § 11-504(b)(5) and an additional $5,000 of value in personal property. Md. Code Ann. [Cts. & Jud. Proc] § 11-504(f)(1)(i)(1)
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 16006
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you
Customer: replied 11 months ago.


What do you mean when you say he could be adding some exemptions from the wages? I have never heard of that. Can you explain it to me?

Expert:  WALLSTREETESQ replied 11 months ago.
he may be adding the wild card exemption with the personal property exemption, that may be possible however since this is for account receivables, he would only be able to use the wild card exemption.
Customer: replied 11 months ago.

So by doing that increases our exemptions to $12,500 each, totally $25,000?

Expert:  WALLSTREETESQ replied 11 months ago.
if it is $25,000 the only way I see it is possible is if he added exemptions or the wild card exemption increased recently.

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