US Trustee asking for stuff now!

[J Armstr]

Well, when we thought we were nearing the end, now the US Trustee is asking for W-2s, taxes, and pay stubs. Why does the US Trustee ask for this info after the local trustee is finished? Is this a bad sign?

Filed 6/8, had 341 on 7/18

[edwards2]

I dont know if it is normal but it happened to us too. The difference is the U.S. Trustee asked for the info prior to our 341. We were unable to submit all of the documentation she requested so she filed a motion to extend time and we had to provide even MORE of the same. We were told that she did that to us because we were over the allowable limit for education expense plus we have a high income(high expense too). The attorneys usually have a general idea why the trustee makes these requests so you might check with your lawyer. Our attorney told us we could very well have to justify the expense so we were prepared to defend it. Whatever you do give them what they want so you dont have to go through what we did. Good luck..

[J Armstr]

Our attorney is on vacation right now, but she did mention that we would also be audited by the US Trustee because of high income too.

We got all the required documentation together last night. Hopefully, this will go smooth.

Thanks for your response.

[herekitty]

My guess is its a formality and as long as you were honest you should be fine.

[J Armstr]

Thanks Kitty. I am so nerve wracked over this! ugh!

[edwards2]

As long as you have expenses to offset your income you will be okay. We had medical expenses that were off the chart plus credit card bills that were used to pay some of the medical bills. There is a mean that they use for income and we were well over that but again once they saw the outgoing the incoming wasnt an issue. In Tennessee they are really cracking down on BK filings especially for people like you and me; i.e., income. Just make sure you give them everything they ask for the first time around no matter what. Good luck...

[FloridaGirl]

Well, what does the trustee consider a high income? Anything over 50 grand? Just curious as to how much you have to make before trustee will do an audit.

[J Armstr]

I make a lot over $50K/year.

[HHM]

People with higher incomes have higher cost of living expenses...that's how we qualify for Ch 7.

http://www.bankruptcyforum.com/showthread.php?t=2726

"LOL, I think this is kinda ironic given the above quote you made in the Big House Chap 7 thread"

I guess your not out of the woods yet. To understand what is going on, the Chapter 7 trustee's only job is to liquidate the estate, sell anything he can and pay creditors. The US trustee's job is to generally oversee the bankruptcy process, they are the ones that prosecure bankruptcy fraud and decide if a conversion to a Chapter 13 is warranted. (the reason for this last one is the conflict of interest with the Chapter 7 trustee, chatper 7 trustees don't get paid when a case is converted to a 13).

As to your question, is it a good sign? Strictly speaking no, but most people come out unscathed even when the US trustee makes an appearance so long as they are able to comply and are honest.

[J Armstr]

Why is that funny? Don't see the humor.

[Minnymouth]

HHM,

LOL ---LOL

I see the humor in what your saying, I read his other posting too....lol

Minny

[wait'n4discharg]

J - The US Trustee wanting your info is pretty normal. People with higher salaries normally do get audited. Hang in there it will be over soon.

I don't understand HHM humor either.

[debtjumper]

So if I only make like $32,000 and have nothing to show for it plus $35k in unsecured debt I shouldn't expect a rocky road?

[J Armstr]

debt-jumpter: Not knowing all your circumstances, I wouldn't think your BK would be a problem. My attorney told my wife and I that because of our income we should expect to get audited by the US Trustee. It was just a bummer when it actually happened.

I believe also the US Trustee is looking at expenses. If your expenses are pretty much in-line, it should be a slam dunk for you. Good luck to you!

[J Armstr]

Yeah! We are discharged!