Time for Objections being extended

[Becky C]

Got a copy of "Trustee's Application to extend time for objecting to discharge" in the mail today --

We filed Aug. 3, had our 341 Sept. 16, today got this notice that the Trustee is extending the time for filing complaints for 60 days, until Jan. 15, 2006 "to allow an adequate investigation into the Debtors' affairs."

So our anxiety continues for a couple more months...

[robivi3]

They did this to us. It could be one of two things, standard practice or bad news. That is how you have to take it. For now do not read into it more than that. However, prepare answers for any questions that you suspect may arise. Try and save a little in case extra hearings come about.

I had a terrible BK and the Trustee could have skewered me, everything worked out OK. Please TRY to cast aside some of the anxiety, you will age considerably if you do not. I can tell you, it is not worth it.

[Becky C]

Well, we have two situations that are ususual --

We sold a house with a seller financed mortgage 3 years ago -- our attorney told us the trustee may sell the mortgage to an investor and split the proceeds among the creditors that object, or it may be returned to us if he cannot find an investor to buy it, so that the trustee's office doesn't have to administer monthly payments for the next 7 years while the folks pay off their house. (We bought this little house for rental property for 16,000 and ended up selling it to some friends for 35,000 2 weeks later.) But our debt is way bigger than the balance on the mortgage, so we decided to go ahead with ch. 7 anyway, and take our chances.

The other thing is, dh receives monthly income from his mother's estate trust. It is worded so that creditors cannot touch it, dh cannot take anything except interest each month without a court order, so we feel certain that it is safe, but I'm sure the trustee wants to investigate, since there is a sizable amount of money in the trust.

Thanks for your concern. I'll be glad when this is all over and we can get on with our life!

Becky

[edwards2]

They did that to us too and robivi3 is right - it is either bad news or you just have to explain an expense or income, etc. In our case it was an expense. I truly feel your pain about the anxiety but if you have an attorney ask him. Typically the lawyer has a general idea what the trustee is questioning or looking for so you can be prepared with an explanation, paperwork, etc. The trustee makes money when the creditors are paid so they are all looking for conversions. Try to be calm. If you can substantiate what you submitted you will be okay. We had to also explain 3 checks we had written...they were for mortgage, taxes and medical. Once we told her the whole sordid story she was okay. You will get your "day in court" if they require a 2004 exam with you and the trustee and believe me it the best way to plead your case. Let us know if you hear anything.