341 over!

[AnnieG]

Had the 341 this morning. Thank God it is over!
The judge asked us the usual questions. And then he asked us how we could have gotten in such debt (we have ~$140K in unsecured debt). I tried to explain about me losing jobs and getting lesser paying jobs and then using the credit to live off of. And he kept saying that he "just didn't understand it". He finally said that basically, we lived beyond our means and budget. And I agreed. Then he said that he had no more questions.
The US Attorney did not show, but did send a question, and that is to see if my husband had a job yet.
No creditors showed up. And he didn't question any expenses.
Is that it? It worried me that he kept saying that "he didn't understand it.....he didn't understand it." I tried as best as I could, but I was so nervous at this point that I could hardly speak!
Any thoughts?

[herekitty]

I'm glad it went pretty well, wow - that was over pretty quick.

He may not necessarily understand, but that's what bankruptcy is for - because half the time we don't even know how we got into this mess either!

Good luck and keep us updated!

[edwards2]

My guess is he kept repeating that he didnt understand it because that is a LOT of unsecured debt. You have to admit that amount is staggering. I would be unnerved too if he kept repeating that same phrase. We filed on $83k but a portion of that was medical bills. Did you husband get a job or did he have a job during that time at all? The debt covered how long a period of time? I also think the trustee was probably trying to determine how much of that debt was used for necessities. I know, and in fact we all know, about using credit cards to pay for essential items. Desperate times call for desperate measures. The fact is too though that some of the trustees are playing hardball now over consumer debt in anticipation of the new law. Do you have an attorney?

[AnnieG]

My guess is he kept repeating that he didnt understand it because that is a LOT of unsecured debt. You have to admit that amount is staggering. I would be unnerved too if he kept repeating that same phrase. We filed on $83k but a portion of that was medical bills. Did you husband get a job or did he have a job during that time at all? The debt covered how long a period of time? I also think the trustee was probably trying to determine how much of that debt was used for necessities. I know, and in fact we all know, about using credit cards to pay for essential items. Desperate times call for desperate measures. The fact is too though that some of the trustees are playing hardball now over consumer debt in anticipation of the new law. Do you have an attorney?

This debt spans 20-years. And we did spend a lot on the better things in life (vacations, nice clothes, eating out)...but that was when I was making over $100K and really didn't think there was a chance that I would make less. I am in information technology, and when the dot com bubble burst, we took a hit. I have had 4-jobs in two years, with salaries swinging =/- 25%. We've had two children---did not budget appropriately for costs associated with that. My husband is a teacher, and he has stayed home with the children most of the time. Due to the pitiful amount we paid teachers, he really wasn't making much more than it cost us for daycare.
Yes, I do have an attorney, but they are not in Nebraska. I had an appearance attorney, who really didn't say much at all. I asked him how it went and he said "fine" and that was it!
Up until we were defrauded by a debt termination company last November, I was NEVER late for a payment. We had a lot of credit, and always paid on time, but only made the minimum (Oh yeah, the judge did ask that if we only made the minimum payments.)
Also, the total debt includes my student loans ($20K, which are not dischargeable). And the fraud by that debt termination company caused the debt to rise almost $18K over a six month timeframe, due to not paying the cards, late fees, over limit fees, interest rates increases to 26+%.
We have been living on cash for the last six months...it has been really hard, so it is really apparent that I have relied on credit in a VERY unhealthy way.
We have learned a powerful lesson.

[stressedinmi]

We had ours today too, and it did NOT relieve any of my worries. We filed in May, and just had our meeting today. A few weeks ago, I got a higher paying job, and so he kept asking questions, about income and expenses. On the spot questions that we weren't really prepared to answer. I'm really bummed, because if we had had our 341 meeting in a more timely fashion (i.e.. 20 - 40 days), it would not have been an issue. We don't really have any additional disposable income because I owe withholding/self employment taxes on about 6 months of contract work that I was doing until I got my new job.

So does anyone know how long before we find out if he has an issue? The whole 60 days, or sooner? If he was going to ask us to convert to a 13, would he have asked us today to redo an income/expense worksheet? He did not ask us to do that.

[hhou812hh]

Had the 341 this morning. Thank God it is over!
The judge asked us the usual questions. And then he asked us how we could have gotten in such debt (we have ~$140K in unsecured debt). I tried to explain about me losing jobs and getting lesser paying jobs and then using the credit to live off of. And he kept saying that he "just didn't understand it". He finally said that basically, we lived beyond our means and budget. And I agreed. Then he said that he had no more questions.
The US Attorney did not show, but did send a question, and that is to see if my husband had a job yet.
No creditors showed up. And he didn't question any expenses.
Is that it? It worried me that he kept saying that "he didn't understand it.....he didn't understand it." I tried as best as I could, but I was so nervous at this point that I could hardly speak!
Any thoughts?

The judge asked the questions or the ch7 trustee? I'm surprised that they didn't frown at the living off the credit with less income. When I spoke to an atty they said that it doesn't look good if you spend on credit with a job loss or lower income since they may feel you intentionally charged with no intent on paying. I guess since it was living expenses you used it for they didn't care. If you took a vacation I guess they would cry fowl.

Anyway good luck!!

[AnnieG]

The judge asked the questions or the ch7 trustee? I'm surprised that they didn't frown at the living off the credit with less income. When I spoke to an atty they said that it doesn't look good if you spend on credit with a job loss or lower income since they may feel you intentionally charged with no intent on paying. I guess since it was living expenses you used it for they didn't care. If you took a vacation I guess they would cry fowl.

Anyway good luck!!

It was the trustee, he was the only one there. And as for the spending, it has been over a year since we done any "leasure" spending on credit.

[marko56]

I guess he doesn't have to understand, just apply the law. iIgot in over my head too. Now that I've recently been discharged I will build back and lord willing won't get myself back in the same situation.

Good luck

[4inga]

It was the trustee, he was the only one there. And as for the spending, it has been over a year since we done any "leasure" spending on credit.

Can anyone explain what they consider "leisure"?

thanks-

[StaciMM]

StressedinMi-
Why did it take so long to schedule your 341?

[StaciMM]

I would describe 'leisure' as unneccessary items.

[ndbigler]

We filed in May, and just had our meeting today.

StressedinMi-
Why did it take so long to schedule your 341?

No kidding. Does it vary from state to state? I filed in May also, and my 341 was July 5th.

[sunshine08]

We filed in May and had the 341 in June. Maybe the trustee was trying to figure out how you went that long without having to file sooner.
We also got stuck with the debt consolidation thing. Paid them quite a chunk of change. They adviised us not to make more than the normal program or we could be kicked out of the program. DUH?

[TatteredInTexas]

I guess he doesn't have to understand, just apply the law.
Good luck

I concur. While they are "trustees" of the court, they are not GOD.

Unfortunately, some people in positions of authority, seem to get a "high" from exercising their powers over others. But, as marko56 said... "he doesn't have to understand, just apply the law."

All the best,
Ronnie
TatteredInTexas