Starting a Business

After filing bankruptcy, what does it mean when the trustee files a motion requesting denial of exemptions?

I filed for bankruptcy, attended a meeting of creditors, paid my attorney and am now waiting for discharge.
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In a bankruptcy matter, the trustee has the right (and the responsibility) to review the bankruptcy petition--ensuring that the rights of the debtor (you) and the rights of creditors are fairly balanced.

Among the things the trustee will look at is the listing of certain property that a debtor claims is "exempt" and therefore not available to pay the claims of creditors. It's entirely possible that information came to light during a meeting of creditors that made the trustee want to reconsider some of the property you listed as exempt.

As a result, the trustee's motion will probably point out the property that you claimed was exempt, argue to the court that it should not be exempt, and therefore should be available to pay the claims of your creditors.

As you are represented by counsel, make sure the counsel fully explains to you these procedures and their ramifications should the trustee win the motion.

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