Update on our UST saga & our plans...

[welovedis]

Met with our attorney today and during our meeting we discussed the UST and the issues they are bringing up in regard to our CH 7 filing. Because (on paper) we have $199/mth left over (based on DH's income being higher than it is now due to loss of OT at his work) they essentially want us to convert to a CH 13.

The UST has told my attorney that if we don't convert they will move to dismiss and we'll have to go in front of the judge if we decide to fight it. The UST can then bring up everything we've spent money on during the 6 months prior to filing and grill us on everything from going out to eat to the 2 trips we took (before we knew we were in trouble) that costs less than 2K total.

DH & I have been going back & forth on the subject, one day we say we'll fight this, another day we say--we haven't got any fight left in us. Our decision was made this morning during our meeting---we are going to go ahead and do the conversion. Our attorney already had a plan prepared, JIC, and we looked it over. It is extremely doable since DH will get his annual raise 2/1 and has the opportunity to take on a PT job until I am out of school in December. It isn't the perfect solution, but we are going with it in order to end the chaos that the UST seems to want to rain down on us.

On a great note, the BKT for the CH 13 cases in our district was in our attorney's office about a completely different matter and close to the end of our meeting he asked to talk to our attorney for a minute. Our guy took that opportunity to ask if he could meet us briefly and we chatted for a few mins. We said that we'd be converting our case and he said that he looked forward to putting things in motion as quickly as he could so that we could "get on with our lives". He gave us his card and said to call if we had any questions and our attorney wasn't available. Unbelievable how friendly he was.

So, sorry for the book, but I did want to say thanks to all that have offered some great advice to me, especially Help!, HHM, blankslate, dingdong, AngelinaCat & 'Hub too, Flamingo & many more. I sincerely appreciate you helping out this "not so BK smart" chick & her family!

[welovedis]

Sorry, forgot to add that our plan is about 14% payback, it will be $199 month for 60 months.

This BKT does not typically take tax returns, our attorney said he takes 1 our of 10 in his experience and usually if they are for a larger amt. He has not seen him take anything under $3K!

Also--we asked what will happen when I graduate & am working as an RN, our attorney said he will probably want to see some payroll information next summer sometime, but that this particular BKT rarely modifies existing plans unless income goes up drastically. And since I have a small amt of student loans to repay, we can show that our expenses will increase D/T the loan repayment.

So, overall, we are feeling really OK with this. The fact that we are repaying some the debt is also something that we feel morally good about, since we did incur the debt and had taken those trips and lived above our means.

Anyway, just wanted to add that info!

[StartingOver08]

It sounds like you got a really good plan - and the stress is over now!
At least the UST doesn't take your tax returns, that is a good sign too.

Good luck with completing your schooling - that should be a little easier now that this is settled.

[liz417]

Oh, I glad it all worked out. It sounds like your Trustee isn't too bad and won't go after every penny you make in the future. Hang in there

[welovedis]

It sounds like you got a really good plan - and the stress is over now!
At least the UST doesn't take your tax returns, that is a good sign too.

Good luck with completing your schooling - that should be a little easier now that this is settled.

And I forgot to thank you as well, Starting Over!! I also did want to wish you the best of the luck in the New Year and congrats on your discharge--don't know if I said that before!

[welovedis]

Oh, I glad it all worked out. It sounds like your Trustee isn't too bad and won't go after every penny you make in the future. Hang in there

Yeah, AND another great thing is that he is not taking our 2 insurance polices with cash value in them. He said that is not something he is interested in "going after" in cases like these. I really hope this isn't a dream since it sounds almost too good to be true!

[liz417]

Yeah, AND another great thing is that he is not taking our 2 insurance polices with cash value in them. He said that is not something he is interested in "going after" in cases like these. I really hope this isn't a dream since it sounds almost too good to be true!

Yeah, it does sound "too good to be true", but who would know your Trustee better than your attorney who's worked with him before? And if he says that this particular Trustee is easy, then YEAH for you!! In our district, our Trustee takes all taxes, bonuses, etc.
Good Luck!!!

[dingdong]

I am glad you found something to feel positive about. Every little bit of positive attitude helps in this situation. Sounds like your attorney and the Trustee have a good relationship which is probably one of the best attributes you can ask for in someone representing you, an attorney that has the respect of the court. Makes a huge difference.

Hold on to that positive feeling and let it guide you through this tough time. Just remember you are going to make it through this and even when/if things get "dark" you are going to eventually make it out to the other side.

I am close to thinking that BK, with all of its stress and downfalls, really makes you a better, wiser,stronger, more appreciative and empathetic human being. Taking the lessons we have all learned and applying them to lead us in our financial and personal choices to never ever get in this mess again really is a huge test and incredible lesson that we probably would never have learned if we all hadn't gotten into this mess for whatever the reasons are.

Even though 3- 5 years under the scrutiny of the trustee may seem daunting and almost impossible, you will come out of the "plan" with the incredible skills of learning how to live within a budget and being very focused on where your money is going and most likely be able to plan the balance of your financial life so that you have very succesful and prosperous future.


Your positive attitude is refreshing and I am sure it will be a great assistance in helping to keep you sane through all of this.

[Help!]

I'm glad you've made a decision that gives you some peace. It is so stressful to fight the presumed abuse battle and when you've reached the point that the UST is not willing to negotiate it doesn't make sense to invest any more time/money/mental energy into it. I hope all goes well from this point forward!

[Mi Bankruptcy]

Glad to hear you are finally on a path where there is a light at the end of the tunnel. So glad the Trustee didn't slam you. Good Luck.

[optimist]

Similar situation to mine. We initially filed for a 7 then UST pushed us into a 13 paying 1500/ mo (yet my atty assured me that we qualified for ch 7) Last day to file claims on that is 2/17/09. Now my income has plumeted and we're not sure we can make the payments so we're looking into trying to get back to a 7. I'm not sure if they'll take my last 6 months average income or make me wait and refile in 6 months.