Question about US Trustee and Creditors

[Confused14]

[Help!]

Good question. An attorney for the U.S. Trustee is present at certain 341 hearings that interest them. Certain things seem to catch the UST's eye, such as high income, high debt, repeat filers, potential non-exempt assets, recent relocation from out-of-state, creditor objections, to name a few. In our case, the UST's attorney was at our 341 hearing because our means test gave a result that allowed us to check the "presumption of abuse does not arise" box, but the UST disagreed with our income calculation (asserting that a one-time bonus received for relocation should be counted as income).

Our 341 hearing was continued and the UST filed a statement of presumed abuse. We reached a sort of compromise in which we offered to "un-exempt" personal property to repay our creditors, and the UST filed a declination which allowed our Ch. 7 to proceed. We were discharged, but those were very stressful months trying to prevent dismissal or conversion to Ch. 13.

It is not always possible to tell that the UST will be represented at your 341, however, if you see any of the following flags on the summary page in PACER it is extremely likely: "MEANSYES", "707(b)", "AUDIT", "707".

[Confused14]

Wow, great info, thank you! So far the flags on my pacer account are DebtED, MEANSNO, Repeat and PRVDISCH. I had to do a chap 7 in 2000 due to my no good ex-husband. Now I have to file again due to being too trusting of friends and their using my name and credit. My debt now is about 165K, mostly mortgage debt. I'm hoping since I have a previous discharge, they won't automatically deny me this time. I'll just have to keep my fingers crossed. Thanks again.

[Help!]

The filing date in 2000 is what really matters. "DebtED" means you need to complete the financial management course (this is different from the credit counseling course you took before filing). "MEANSNO" means that your case is noted as "means test passed" according to you - this flag can change if the case trustee or UST disagree. "Repeat" and "PRVDISCH"... check your filing date in 2000.

[Confused14]

[mongoose]

On what document can I find these?/ where are they listed?

Thanks.

[Help!]

On what document can I find these?/ where are they listed?

Thanks.

If you log on to PACER and go to your district's BK court, there should be a link that says "Court Information". The PACER flags are defined there. The flag abbreviations may vary slightly from district to district.

[Cali]

My attorney told me that I would know before the 341 if the UST would be there or not. I thought the UST would show up because of the high debt and over median, but no one showed up for me.