CH7 341's in Oakland, CA
So I borrowed a page out of gman’s book and took this morning off work to go watch Chapter 7 341’s at the Northern California District-Oakland courthouse with the trustee assigned to us.
My initial impression is that we are lucky with the trustee that we drew. He was very professional, took his job seriously, respectful, but at the same time he liked to crack the occasional joke and provide a light atmosphere. I felt very much at ease watching him interact with filers and attorneys. The one thing he did not do even once was announce his decision right there. He ended every meeting with “meeting concluded, you’re excused and thank you for coming.”
For the specifics, I watched 28 meetings. The vast majority of them were the standard gamut of questions that have been posted here an infinite amount of times; did you read this, sign it, changes in job or income, expect inheritance, anyone owe you money, etc.
In most cases, he actually ended up asking one or more questions about what was filed, showing that he does read everything sent to him, even bank statements.
The problem ones: A woman, filing pro se, had gone on a trip to Vegas 3 weeks ago for the funeral of a family member where she proceeded to then spend over 7K at luxury stores and dining out. The trustee actually went through the bank statement out loud reading off the multiple charges (stuff like 3 charges on different dates at Charlotte Ruse, Hard Rock café almost 700, etc.). He looked at her implying “how do you expect me to let this through”, and her justification was that it was probably part of her grief therapy, but she didn’t recall, although she admitted to the purchases. He jokingly asked her if her bank card hadn’t broken since she used it so much. He concluded the meeting, but told her to expect more to come.
A gentleman who required an interpreter (which in our district they use a speaker phone and conference in an interpreter) had two issues even though he had an attorney. He listed a property in Central America for 8K and, being a major cultural difference in how business is conducted, the trustee wanted to know if he arrived at the price by comps while the debtor did not understand, and kept saying a friend who lives there and sometimes sells property. Having lived in South America many years, I understand exactly and know that there is no such thing as comps in most countries there. But that seemed to fluster the trustee a bit. Additionally, the debtor, upon questioning, indicated that he had paid a friend almost 4K in May. The trustee admonished the attorney since the information was not in the SOI. He collected the friend’s name and address and told the attorney he had one week to weave some SOI magic to see if there was any way that he (trustee) would not be requesting that money from the friend.
Another gentleman filed with his business and his attorney listed an inventory that was 10K over the exemptions. The trustee asked point blank if the man was going to liquidate the excess inventory and pay him 10K, to which the man, looking confused, answered yes. Trustee asked him again, same answer with hesitation, but look of abject confusion. Trustee said I don’t think you understand what I’m saying, let’s try math. Inventory is 30K, your exemption is 20K, so are you giving me 10K….lightbulb went off and replied no, no I can’t, I don’t have. Trustee looked at attorney and told him to amend and file revised schedule, but that he did not think it would help. After all, it was inventory that could be sold and was in excess of the exemptions. And he confirmed the minimal value estimate at least 4 times with the debtor.
Funny note on one attorney. The meeting was one of those 60 second uneventful ones. However at the end, the trustee grabbed a stack of over 80 pages, gave them to the attorney, and asked him if his law firm would be joining the digital age at any time in the foreseeable future so that they could start scanning and emailing the documents to him instead of mailing…he also highlighted the significant cost savings and benefits to the environment of such a move…lol.
All in all, a very fair trustee. Always gave debtors and their attorneys the opportunity to explain away something before making any determination. Always ready to crack a one liner to ease the tension. I certainly feel very much at ease now. I know I will be questioned regarding my future-looking tax withholdings and am ready to not only explain, but prove that they have been implemented; I’ll be asked about my own Vegas trip in July, where I went to a bachelor party (can't deny the gentleman's club cash withdrawal...lol...and yes, my wife is aware) but only spent a total of $240 plus $289 airfare; I’ll be asked about a large 5K deposit into my account post filing that is part of a class action settlement listed and exempted in our schedules as an asset, since it was received after the filing. I feel ready.
I would recommend to anybody who can to go and observe a few 341’s with the trustee you drew and understand his/her line of questioning vs. your filing. You’ll understand what you’ll likely be asked beyond the standard, if any, and be ready for it.
Hope this helps.
My initial impression is that we are lucky with the trustee that we drew. He was very professional, took his job seriously, respectful, but at the same time he liked to crack the occasional joke and provide a light atmosphere. I felt very much at ease watching him interact with filers and attorneys. The one thing he did not do even once was announce his decision right there. He ended every meeting with “meeting concluded, you’re excused and thank you for coming.”
For the specifics, I watched 28 meetings. The vast majority of them were the standard gamut of questions that have been posted here an infinite amount of times; did you read this, sign it, changes in job or income, expect inheritance, anyone owe you money, etc.
In most cases, he actually ended up asking one or more questions about what was filed, showing that he does read everything sent to him, even bank statements.
The problem ones: A woman, filing pro se, had gone on a trip to Vegas 3 weeks ago for the funeral of a family member where she proceeded to then spend over 7K at luxury stores and dining out. The trustee actually went through the bank statement out loud reading off the multiple charges (stuff like 3 charges on different dates at Charlotte Ruse, Hard Rock café almost 700, etc.). He looked at her implying “how do you expect me to let this through”, and her justification was that it was probably part of her grief therapy, but she didn’t recall, although she admitted to the purchases. He jokingly asked her if her bank card hadn’t broken since she used it so much. He concluded the meeting, but told her to expect more to come.
A gentleman who required an interpreter (which in our district they use a speaker phone and conference in an interpreter) had two issues even though he had an attorney. He listed a property in Central America for 8K and, being a major cultural difference in how business is conducted, the trustee wanted to know if he arrived at the price by comps while the debtor did not understand, and kept saying a friend who lives there and sometimes sells property. Having lived in South America many years, I understand exactly and know that there is no such thing as comps in most countries there. But that seemed to fluster the trustee a bit. Additionally, the debtor, upon questioning, indicated that he had paid a friend almost 4K in May. The trustee admonished the attorney since the information was not in the SOI. He collected the friend’s name and address and told the attorney he had one week to weave some SOI magic to see if there was any way that he (trustee) would not be requesting that money from the friend.
Another gentleman filed with his business and his attorney listed an inventory that was 10K over the exemptions. The trustee asked point blank if the man was going to liquidate the excess inventory and pay him 10K, to which the man, looking confused, answered yes. Trustee asked him again, same answer with hesitation, but look of abject confusion. Trustee said I don’t think you understand what I’m saying, let’s try math. Inventory is 30K, your exemption is 20K, so are you giving me 10K….lightbulb went off and replied no, no I can’t, I don’t have. Trustee looked at attorney and told him to amend and file revised schedule, but that he did not think it would help. After all, it was inventory that could be sold and was in excess of the exemptions. And he confirmed the minimal value estimate at least 4 times with the debtor.
Funny note on one attorney. The meeting was one of those 60 second uneventful ones. However at the end, the trustee grabbed a stack of over 80 pages, gave them to the attorney, and asked him if his law firm would be joining the digital age at any time in the foreseeable future so that they could start scanning and emailing the documents to him instead of mailing…he also highlighted the significant cost savings and benefits to the environment of such a move…lol.
All in all, a very fair trustee. Always gave debtors and their attorneys the opportunity to explain away something before making any determination. Always ready to crack a one liner to ease the tension. I certainly feel very much at ease now. I know I will be questioned regarding my future-looking tax withholdings and am ready to not only explain, but prove that they have been implemented; I’ll be asked about my own Vegas trip in July, where I went to a bachelor party (can't deny the gentleman's club cash withdrawal...lol...and yes, my wife is aware) but only spent a total of $240 plus $289 airfare; I’ll be asked about a large 5K deposit into my account post filing that is part of a class action settlement listed and exempted in our schedules as an asset, since it was received after the filing. I feel ready.
I would recommend to anybody who can to go and observe a few 341’s with the trustee you drew and understand his/her line of questioning vs. your filing. You’ll understand what you’ll likely be asked beyond the standard, if any, and be ready for it.
Hope this helps.
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