14 Days after 341...

[jwsmartin]

We had our 341hearing on May 27th, and on June 6th this showed up on Pacer...


Statement of Presumed Abuse. As required by 11 U.S.C. Sec. 704(b)(1)(A), the United States Trustee has reviewed the materials filed by the debtor(s). Having considered these materials in reference to the criteria set forth in 11 U.S.C. Sec. 707(b)(2)(A), and, pursuant to 11 U.S.C. Sec. 704(b)(2), the United States Trustee has determined that1) the debtor's(s') case should be presumed to be an abuse under section 707(b); and (2) the product of the debtor's current monthly income, multiplied by 12, is not less than the requirements specified in section 704(b)(2)(A) or (B). As required by 11 U.S.C. Sec. 704(b)(2) the United States Trustee shall, not later than 30 days after the date of this Statement's filing, either file a motion to dismiss or convert under section 707(b) or file a statement setting forth the reasons the United States Trustee does not consider such a motion to be appropriate.Debtor(s) may rebut the presumption of abuse only if special circumstances can be demonstrated as set forth in 11 U.S.C. Sec. 707(b)(2)(B). (Thomas, Paul)


We knew going into this about the presumption of abuse, but does this mean that we have to wait another 30 days from June 6th for a final say?

[getouttadebt]

It means you are over the median for your state and the UST will be looking into your case. I got one of these on my first case, and the UST then filed a Motion to Dismiss or Convert. We didn't want to convert to a 13, so we let the UST dismiss the case and we have now refiled.

Under the new bankruptcy law, the UST has 10 days following your 341 to decide whether or not your case sould be considered a presumed abuse. I think this statement is required if you income (CMI) is over the state median. Then, the UST has 30 days from the date of filing the Statement of Presumed Abuse to decide if it wants to: file a motion to dismiss or convert; or decline to file the motion explaining why.

Are you working with an attorney? If you are, ask your attorney to call the UST for an explanation.

Good luck,
getouttadebt

[Help!]

I agree with getouttadebt - contact your attorney ASAP. This means the UST feels that you have either not met the means test, have the ability to repay your creditors or that totality of circumstances prevents discharge of your debt. It means that you must successfully prove otherwise or your case will be dismissed. The UST may, at their discretion, file a motion to convert to Ch. 13. If the UST files a motion to dismiss, you may file a motion to convert on your own behalf. If you feel you can demonstrate special circumstances (job loss, illness resulting in high medical expenses, etc.) you can object to the UST motion to dismiss.

If your petition showed you met the means test and your schedule J indicated an inability to pay a portion of your debt, it is likely the UST has found errors in the calculations or disagrees with the calculations. For this reason, if you have an attorney, they should communicate with the UST.

You will know within 30 days from June 6 the UST's decision, but this is actually sooner than you would have seen discharge anyway (60 days from your 341 hearing). This also means that you have between now and that 30 day mark to rebut the presumption of abuse. If you don't take any action, the final say be dismissal unless the UST changes their mind for some reason.