US Trustee Present at 341 - worries

[just_hoping]

First Time poster - we filed Chapter 7 - no presumption of abuse - we pass the means test by ok margin. Had 341 and all went smooth. But US Trustee was present taking lots of notes. Is this normal? Any worries - can their be an innocent reason for their attendance? Thanks.

[Help!]

Glad I saw your post. UST was present at ours, too, and was extremely aggressive in her questioning. It was clear at our hearing she felt we did not meet the means test. We are way above the median and attempting to discharge a lot of debt. After posting to this forum, I learned that my nightmare 341 was not the norm. I was handed a six page list of documents to provide, the depth equivalent to an IRS audit. Our hearing was continued, also not a good sign. It turns out that that is exactly what this is... an audit! It may not be the case in your situation, but you may want to check out this thread:

http://www.bkforum.com/showthread.php?t=24183

If your hearing went smoothly and the UST didn't say, "I am sure I'll have more questions for you at the next hearing" I'd say you're in much better shape than we are!

Good luck!!

[2confused]

This is not a good sign. What did your attorney say?

[just_hoping]

Actually our attorney told us before hand that the US Trustee is in their on occassion - typically just to verify stuff - do their due diligence. He told me it was not unusual though I wanted to hear from others on this.

[Help!]

My attorney said nothing. He walked into the courtroom about two minutes before our hearing and dropped the six page document in front of me and said, "Oh, I forgot to give this to you. The UST emailed this to me a couple of weeks ago, just some documentation you need to provide." We were already so nervous and this made it much worse. He had not told us anything about the UST, only that there might be creditors at our hearing. We had no idea who she was or what this was about until we googled "US Trustee" after our hearing. So, in answer to your question... our attorney did *nothing* (as usual).

The UST did have questions for the Ch. 7 ahead of us, but it sounded more like she was just verifying a few things. When we sat down the tone was more of an interrogation. This does not seem to be the case with you, so I would guess that the UST is really only doing due diligence.

[trytosavemyself]

I don't think that it is a good sign that they showed up. Yes it is true that they show up sometimes to do like a routine thing. In my case when they had questions with my filing, they simply send a letter asking for documents (about one page letter with 8-10 questions ) and never show up for 341. Let me ask you this, is your 341 concluded or its continued ? If it is concluded I would say that there would be a good chance that UST will not go forward unless they have investigated something funny from you. They usually have a lot of cases and shouldn't have a lot of time dealing with your filing unless it looks suspicious to them. So ask yourself, do you have any thing hidden? If not then I would just relax and wait.

[monkatom]

I had the UST and mine because I was discharging 125K of debt. he asked a few questions and that was it. I should be discharged this weekend so we shall see.

[sunshine mary]

I had the UST there too and he listened and asked a few questions about some payroll deductions I have but my attorney talked to him and he said he wasn't going to pursue a presumption of abuse...My attorney said they are always at the "borderline cases" because we were over the median. I think it's just part of it for some cases. I look at it like this, we were 100% truthful and didn't attempt to hide anything so whatever happens, happens. Anything is better than the way we were living under a mountain of debt with constant phone calls etc...Good luck to you and to the poster "help"

[just_hoping]

Thanks. To answer trytosavemyself, there was no continuance of 341. Trustee just asked basic questions for 5 minutes. US Trustee did not ask anything. Trustee was very nice and just asked for documents at end regarding income and tax returns. We have been very forthcoming with everything, have nothing to hide, have been very honest in our dealings and that is why we were surprised that a US Trustee was there. Our case has just been listed as NDR - no assets by the Trustee. I assume that has no bearing on what the US Trustee was reviewing. It is good to hear that others had a US Trustee appear and nothing came of it. Sorry to hear HELP's story - I hope all works out well. I just wait now . . .