In Dire Need of US Trustee Repellant

[G-no-money]

Here's the situation - which I'm discovering is fairly common:

Background:
- filed BK in April after 8 months of not paying creditors but conducting an-ongoing effort to get another job;
- with a 20-year sterling credit history, really wanted to avoid BK'ing;
- BK'ed because of divorce, credit card debt and no income in 2005 and 2006;

Creditors
- I paid creditors several $10,000s in 12 months before running out of money (beginning of 8 month period);
- I did not use credit cards for 8 months before filing;
- I did not use credit cards much before stopping payment;
- used up my savings doing so;
- I have no assets;

Lawyer
- my lawyer and I decided to cooperate fully and have provided all information requested by BK Trustee and US Trustee during course of two 341 meetings, which I understand is unusual of people looking to BK;
- 341 mtg in May, 60-day period has expired;
- BK Trustee is not pursuing my case;

US Trustee
- HOWEVER, US Trustee has filed for motion to extend examination period for 3 months, wants to prove abuse;
- US Trustee wants to investigate a company for whom I am an advisory director for no pay, embarassing but no problem;
- Given that the facts that we have cooperated fully, provided all information requested, and the US Trustee has had ALL my information for the first 60 days, I am inclined to fight the motion to extend exam period;

Abuse by US Trustee
- my lawyer thinks the judge would say "what's the harm" and give the extension anyway and my research confirms judges normally do this;
- lawyer thinks spending money, which I do not have, to object to motion to extend would be a waste;
- I sought to avoid any semblance of abuse;
- the US Trustee action seems not only unreasonable, but an abuse of their power;
- I want to draw a line in the sand, yet BK'ers seem to be at the mercy of over-zealous US Trustees, even when the facts clearly demonstate no abuse.

Questions
REALLY welcome your advice on the following:
- How can I get the US Trustee out of my $%&#! ???
- Where and when does this end ???
- What rights, if any, do BK'ers have ???

Thanks a million. "I owe ya."
G-no-money

[lrprn]

- How can I get the US Trustee out of my $%&#! ???

You can't. Your lawyer is probably going to say if there's no abuse, then let this take its course.

- Where and when does this end ???

If your local trustee has signed off that there are no assets, then it's likely that the US Trustee will as well. Your case ends when the US Trustee completes his investigation and files whatever he's going to file.

You are likely in this situation because I get the impression you are a high-income filer. These cases are notorious for US Trustee involvement.

- What rights, if any, do BK'ers have ???

As many rights as the creditor-favoring new bk law passed in 2005 allows us. Actually with a good lawyer on our side and complete honesty, we debtors can hold our own against the big financial boys when they play fair

[SinkingFast]

The case right before ours,............. No Asset Ch 7's all of us,......... Local Trustee had filed a "No Asset" report immediately after our 341 Meeting. On the day before the last day for Objections, the UST filed an Extension on those folks.

They owned their own small business. Those folks rode out the Extension and have since been Discharged and Closed.

Due to past abuses and fraudulent behaviour, there are just some red flags for the UST's Office. Business owners, people with no assets trying to discharge $100K+ in unsecured debt, other specific situations.

Sounds like your Advisory position has triggered the UST's interests.

Your attny is right. You don't have the money so it's not worth fighting. If your attny didn't give a ball park figure of what kind of fee you're looking at paying,.......... Our attny charges $2K, up front, to represent a Filer in an Adversarial proceeding. $2K never covers the total costs. The UST has attnys on staff and the deep pockets of the US Government.

Once the UST is satisfied that the company involved indeed does not pay you, the dog will drop the bone and your case will progress.