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BK trustee vs. US trustee

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    BK trustee vs. US trustee

    I thought there was only 1 trustee involved in a bk case, until I saw another poster talking about the US trustee making a fuss (aka objecting) after the bk trustee had reviewed the case.

    I got the impression that the bk trustee saw my case as no asset and that he wasn't making any objections nor questioning anything in my paperwork.
    But if he declares me a no asset case, can the US trustee disagree with him?
    Now I'm getting nervous again! The 341 went smooth, and thought ok... now all I got is 2 months of waiting for no creditors to object and I'm home free!
    But there may be a chance that the US trustee might make a fuss, since he's more thorough.
    HELP!
    None

    #2
    Think of it like this...the US Trustee is the boss of the BK Trustee. The US Trustee is an arm of the Department of Justice, and they are tasked with enforcing certain provisions of the BK code (mainly the criminal aspects of the BK code, and those civil aspects that have penalties, i.e. fraud, etc). Most importantly, it is the US trustee that pushes people from a 7 to a 13. Realize that a chapter 7 BK trustee has no interest in pushing you into a 13 because they don't get anything out if. A chapter 7 trustee makes their money (at least part of it, anyway) from a percentage of the assets they can recover from debtors to pay creditors.

    I would not get overly concerned, most US Trustee's tend to pop-up at the 341 if there is an issue...but that is not always the case.

    I can certainly understand your concern and apprehension, but at the same time, BK is a fairly predictable process. If you filled out your paperwork correctly, and you haven't done anything stupid, (i.e. attempt to file a chapter 7 while being $10,000 over the median income without some solid criteria to overcome an abuse objection), your BK is going to be fine.

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      #3
      I hope so, too.
      I had some errors in my schedules (forgot to put description of debts on sch F and overcalculated assets by $295 on sch b), and I told the trustee... he said there was no need to correct those errors, since I didn't go over $12k in assets.
      Man, what if the US trustee is a big stickler over my errors?
      None

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        #4
        hi...generally a us trustee will sit in onthe case or review the case if there are special circumstances such as very high income or very high debt load to be discharged..if the trustee marked it as no asset and had no objections, I doubt you have to worry..if you told them everything they had to know, no reason for a us trustee to research anything...keep eye on pacer...you'll be fine....counting down the days myself....guzzie
        case filed : 6 -5-2007 :blush2:
        DISCHARGED ...9-26-2007..:yahoo::yahoo:
        case closed : 11-13-2007 :yahoo::yahoo:

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