341 Hearings - I observed 35 of them - here are my notes

[gamama]

I live in Cherokee County (Woodstock), Georgia
Not sure how we got so 'lucky' with this trustee.

My biggest concern is the sloppy bookkeeping I have.

We have high income and small business - which is probably why the trustee asked for all the stuff. We don't have 'assets' (house w/mortgage and value being equal, 2003 yukon, 2006 hyundai both are paid off). I'm concerned that our budget maybe questioned. We seem to spend above the median.

mortgage is about 50% of take home pay - this is after a reduction of income.
3 teenagers - we probably spend a lot on extra curricular activities: baseball, band, football, soccer, etc
Housing utilities are high too. Electricity over the summer peaked at 500.00
We also had health care costs in 2009- May 2010 @ 624.00/month

We lived on a budget since 2008 using Dave Ramsey plan; trying to work through our debt. We have about 75k in unsecured debt, boat that is upside-down on loan that we will surrender, 40k in taxes due and $130k income (down from 170k in 2008). No matter how you work the numbers - we can't seem to get ahead of this debt and is why we are trying to file Chapter 7.

[jetsfan2010]

excellent info...thanks!

[gman]

thanks Gman for this thread! I live in the Northern District of GA; we had our 341 today. I've followed this thread throughout!

The trustee was a real jerk - he did made every one require something else they didn't have on them...ie: tax return, ex-spouses address, etc... This trustee even asked one debtor how many books and CDs they owned and to privide that on schedule j when he comes back next month. Everyone before us was required to return a few days before Christmas - nothing like being a scroog.
My husband and I was no different. He is requiring us to come back 12/21 with 2 years worth of all bank statements (personal & business), bank registers. Our lawyer was shocked that he asked for so much! I can't wrap my head around this task!

The trustee that held today's cases last name is Andersen - our lawyer commented that he is the toughest trustee in GA.

Wow. That's crazy. To date, the only thing the Trustee asked me for was my SS card and my 2009 tax return. I did not see him ask for a single reset unless the debtors inexplicably showed up missing one or the other. Most people were literally in and out in 2 minutes.

What CITY is your Trustee located in? Posting it may help others.

[gamama]

thanks Gman for this thread! I live in the Northern District of GA; we had our 341 today. I've followed this thread throughout!

The trustee was a real jerk - he did made every one require something else they didn't have on them...ie: tax return, ex-spouses address, etc... This trustee even asked one debtor how many books and CDs they owned and to privide that on schedule j when he comes back next month. Everyone before us was required to return a few days before Christmas - nothing like being a scroog.
My husband and I was no different. He is requiring us to come back 12/21 with 2 years worth of all bank statements (personal & business), bank registers. Our lawyer was shocked that he asked for so much! I can't wrap my head around this task!

The trustee that held today's cases last name is Andersen - our lawyer commented that he is the toughest trustee in GA.

[gman]

This is a great thread and I just wanted to comment on above question. We filed jointly, and though most of the questions were for "both", there were some questions for either one of us specifically. Nothing major though. I think unless joint filers actually are similar in every way, it is inevitable for the trustee to ask individually specific questions.

We did both answer together on the questions directed at both of us (usually a Yes or No).

Hope this helps

Since my 341 was this week, I got to sit through a couple of more 341's (around 10 before I was called) and have some info to add.

Real Estate
I continue to be amazed at how people did not come in prepared to answer what there home was worth TODAY. All it takes is 2 minutes to go to zillow.com and at least get an online estimate/guess. So many people came in and said "Well, 3 years ago we had it appraised for X." Lesson here: Come in prepared!

Proof of Social Security Number
I watched one case where someone did not bring anything - not even a W2 which would have been accepted.

My favorite case I watched was one where a man had a social security card and his tax returns - AND THE NUMBERS DID NOT MATCH. His lawyer sat there and let this guy twist in the wind. The Trustee was not happy.

Expenses
I was the only person questioned on expenses, specifically my rent. Why? I have no idea other than it is higher than the allowable amount on the Means Test, but I put down only the allowable amount, so it should have been immaterial. Lesson here: I sat through 45 hearings, and only one person was asked about expenses (lucky me!)

Number of Questions
The list of questions seemed shorter than when I observed the same trustee grill people a few weeks back. My guess: The courts are swamped and the process is becoming more like an assembly line.

[I]Creditors[/]
Just like the last time, not a single unsecured creditor showed up. I did watch one woman who owned a closed/bankrupt business with a few vehicles, and the secured creditor showed up asking if she was surrendering them and where they were located.

-----------
Just like the first time, most people were in and out in a matter of 5 minutes or less, and even faster for those who did not own real estate or a business.

For those who are going to go to a 341 soon, they are typically a breeze. Bring a book (not kidding) as they sometimes run behind schedule and you'll likely be sitting in a room with nothing to do.

[confident]

Thanks for the post!

Can you tell us what you saw as far as questioning of joint filers? By that I mean did they ask the husband and wife the same (or different) questions individually or just ask them both at the same time and let one answer?

Thanks

This is a great thread and I just wanted to comment on above question. We filed jointly, and though most of the questions were for "both", there were some questions for either one of us specifically. Nothing major though. I think unless joint filers actually are similar in every way, it is inevitable for the trustee to ask individually specific questions.

We did both answer together on the questions directed at both of us (usually a Yes or No).

Hope this helps

[gman]

Great information, can you please tell me if this was in Newnan Ga. This is where I live and in the process of filing chapter 7.

Check your PRIVATE MESSAGES for the answer...

[Hlc]

Thanks for information.

[nomorebills]

Thanks....you made this a little stress free for me...

[BKAttyMI]

Interesting to see this from a debtor perspective. It's common for a debtor to wonder "what did my attorney do" when the 341 hearing is so fast and easy, when in fact, the hearing was so easy because the paperwork was all prepared and provided to the Trustee properly and correctly beforehand. Most Trustees try not to put a debtor on the spot at a hearing since most are very nervous, the objections come afterwards, usually directly to your attorney. I often converse with a Trustee after a 341 hearing to provide more information or to explain something for my client, unbeknownst to them.

I don’t see how any credit card payments could be put on the means test, it would be my assumption that you misunderstood something that was done by your attorney.

[repuman]

What is considered 'higher income' ch 7? Over 100k? I am curious, new here and have not seen that term before.

I didn't consider us higher income (80K) but compared to most of his clients I guess our attorney did.

[repuman]

Thanks for the post!

Can you tell us what you saw as far as questioning of joint filers? By that I mean did they ask the husband and wife the same (or different) questions individually or just ask them both at the same time and let one answer?

Thanks

Our trustee asked who wanted to answer the questions, I volunteered. Afterward, he asked my wife if she agreed with what I said, she said "yes" (which is a first, btw), that was all she had to do.

[tobee43]

What a very nice way to put it. Same here, except I've all shouldered all the financial burden so much so that DH doesn't even have to file. He did say to me last night that I know far more about him than he ever will.

october i hear you...i guess that may be way both my shoulders had there roter cuffs totally ripped...(the truth!) LOL!!! i'm nursing a total rip now...that's why i have so much computer time.. it's certain was a heavy load.

i better start using my hips!

[october99]

i'm the CEO of family matters, always been that way. my spouse is smart as can be, but has no clue about most of our business matters...with their highly stressful job i thought i was protecting, but sometimes that's not the best way.

What a very nice way to put it. Same here, except I've all shouldered all the financial burden so much so that DH doesn't even have to file. He did say to me last night that I know far more about him than he ever will.

[tobee43]

I saw many joint filers.

All questions were directed to both of them - and both had to answer - typically "yes" or "no".

yes, we filed jointly as well...and actually, we were asked some questions separately ...the truth is when one of was asked a certain question that someone whom will remain nameless was not only nameless but clueless...so the questions had to defer to me...the trustee just smiled about it. i'm the CEO of family matters, always been that way. my spouse is smart as can be, but has no clue about most of our business matters...with their highly stressful job i thought i was protecting, but sometimes that's not the best way.

oh...and gman nice to see you!

we were in fact, asked different questions...as well as a few of the more "general" ones..i.e. are you employed..etc. we both were asked.