Section 2004 Examination and possible objection to discharge

[catleg]

You are being harassed within the law, as you stated. Just sit tight and think happy thoughts and it'll all be over soon. For all you know the FDIC could march in and close the bank on any given Friday (it's not one of the "too big to fail" banks is it? Sounds like local yokel community bankers).

[AbbeyA]

OK, so I just signed up for PACER and checked things out... what surprised me is that the US Trustee signed off of our BK case at the end of January -- his report read that the case is a no asset case, he has examined our financial situation and is extremely thorough and has absolutely deemed it a no asset case, and he stated that the case had already been going on for 4 months. The wording made me feel like he was really pissed that the case was continued. I had a few of the details wrong in my original post -- they first filed a motion for a 60 day time extension, on the last day to file anything, then filed a motion for the 2004 exam. Then they filed a motion to compel for us to turn over tons of information to them - detailed bank statements for the last 5 years and stuff like that, which we gave them. All of their motions have been granted. So now we still wait until the 21st as their last day to file an objection to discharge.

Since the trustee signed off on the case, will pacer be accurate and up to speed? I would like to check it again on the 21st at the end of the day to make sure nothing was filed. Any additional thoughts on this? As far as I know, they still have not made any contact for us to be interviewed as ordered in the 2004 exam.

Also, what do you think is an appropriate time for our lawyer to get back to us? I emailed him one week ago today and nothing. I emailed him again this afternoon with the same questions I had last week and nothing so far. I think this is totally unacceptable, but do I say anything since we are so close to having this thing over? (assuming they don't file any objections). Thanks for any insight and I hopefully will be doing a happy dance at the end of the day on the 21st. Is this like a "business hour" kind of thing - like if they don't file by 5pm they are SOL? Just wondering what time to check pacer to know for sure.

[AbbeyA]

Ugh, it's been nothing short of a nightmare! There have been so many crazy things that have happened - how the business failed, how the bank acted, we've tried to play by the rules the whole time through it and we've been the ones screwed over. To make it even more ridiculous, the work-out specialist for the bank is MARRIED to the attorney at the law firm that represents the bank!!!! This is the same work-out specialist that dh had to meet with to discuss options and this person pressured and pressured him into reaffirming their debt while suggesting discharging the other business loan in ch.7 bk. Can we say "conflict of interests?"

I keep telling myself there is no way that it won't be discharged, there is nothing hidden, we didn't lie, but things have not played in our favor for such a long time now, it's hard to be positive about anything anymore. It just doesn't make any sense. Do people really try to hide assets and risk having their debts non-dischargeable? BK is serious business, who would think that they could get away with that?

I am ready to move on with our lives and to forget the nightmare that we have been through, it has been a never-ending process that won't really be over until the foreclosure is complete and we are out of this house full of bad memories. As much as we want to be out of here, we need to stay as long as possible so we can set aside whatever money we can before we need to start paying rent. We're estimating a sherrif sale to happen in August at the earliest. Hopefully the market will stay down and by the time we can buy a house again for our family, we will be able to get something better than what we have for less money.

This whole thing just really bothers me --- we did not live above our means, we had an affordable home, tried to live a good life and run a business and we were destroyed by the economy. I feel very victimized by everything that happened. When does this feeling end?

[lrprn]

Given what you've shared here, I would agree with your attorney and follow his recommendations about how to proceed from here.

The worst case scenario - your moron bank spends money pursuing the 2004 and it falls flat on its face because you truly are hiding nothing. They can't produce something out of nothing. As stressful as it is, you'll have to let this run its course. You can't influence it, so turn your worry time into something more productive for you and your family - fine-tuning your family budget, for example.

Hang in there. May 21 will come and then you'll know what your bank is going to do. Until then, don't give them the power to turn your emotions inside out. If your lawyer is right, that's exactly why they are doing this. Don't give them the satisfaction of achieving their goal at your expense. The bk law is on your side in this situation, not theirs.

[AbbeyA]

My dh and I filed Ch. 7 BK on Oct. 09. DH had a business fail last year, which had 2 business loans dh personally guaranteed. One of the banks for the business loans filed to go to the 341 meeting but never showed. The trustee declared our case a no asset case, and our house is listed in the bk, which includes a HELOC in addition to the primary mortgage. The last day for any objections, the bank for the business loan filed for a section 2004 examination of finances. They didn't bother to show up for the 341 meeting, but the judge granted it. We submitted all of the information they requested and the last day for them to file an objection to discharge is May 21st. According to our attorney, they actually believe we are hiding assets (absolutely NOT true, we are truly bankrupt after the loss of the business - we personally lost about 500k in the whole thing, not to mention our house - which has liens on it from the business loans and is in foreclosure).

To make a long story short, we have been waiting to hear from them about when we are supposed to be interviewed by the bank's attorneys and STILL have not heard anything. It is now less than 2 weeks away from the final date they have to file an objection. I am looking at this as a positive thing, thinking that they have reviewed our finances to the fullest extent and have come to their senses and will let this nightmare end. BUT, I can't help but get nervous that they are going to file an objection and try to make something up. Wouldn't they need to have concrete evidence of hiding assets to file an objection to discharge? Our attorney has said that he believes they are harassing us "within the bounds of the law," and thinks it's ridiculous that they are going this far with it - he even considered filing sanctions against them for going this far when they blew off the 341 meeting and then extended the whole thing with the further review of our finances after it was declared a no asset case. Any thoughts?