Are there "quotas" for Chap 7 cases?

[Somehow]

I was told the following by a bankruptcy attorney---anyone else ever hear this?

---he said that all BK filings that are INITIALLY filed as a Chapter 7 are scrutinized by the US Trustee because they have, for lack of a better term, a "quota" of filings they must object to and flag so as to prove they are being a careful watchdog. He then went on to say that when you file a Chapter 13, but SUBSEQUENTLY convert to a Chapter 7 (miss a couple of payments) that they do not review those at all. His conclusion is that if one is borderline on qualifying for a Chapter 7, expense-wise, then the way to go is 13 first, then convert to 7 (I guess this winds up having TWO BK filings on your credit report, but I suppose 2 doesn't make it any worse that 1, over the long run).

Anyone else ever hear of this "quota" system and the conversion tactic?

[HHM]

There is some logic to that, if you file a chater 7 FIRST, its easy to convert to a 13, but once in a 13 that was converted from a 7, its next to impossible to get out of. If you file a chapter 13 first, then convert to a 7, your in a better position to be able to stay in that 7.

As for the quota, I don't think that is true, but each region is different.

[InDebtInMD]

The US Trustee said they showed at my 341 because of the high amount of debt. She questioned us about our expenses but seemed satisfied with our answers. Hopefully it will not take too long to find out if they will object.

[HRx]

My findings show that "Joint" high-debt Chp7 petitions, recieve more scrutiny than "Single" high-debt petitions.

I never heard of any sort official federal quota system. If anything the "quota" system, in place, is probably an internal practice within the specific federal court that you're filing with.

Good Luck!