Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
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.
did you file a Chapter 7 or 11?
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.
If you receive the discharge, and the trustee abandons the accounts,
you can receive the accounts,
if the money is received after 180 days,
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.
With that small amount, I would not worry, you do have to show the trustee what happened with the money and any deductions,
Bank statements, and a letter showing what was done with the accounts,
and the expenses, it should not be a major issue.
Good luck, and if you have any further questions please do not hesitate to ask.
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?
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.
What do you mean he may be adding some unused exemptions?
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?
So by doing that increases our exemptions to $12,500 each, totally $25,000?
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