Presumption of Abuse...

[struggling09]

We officially are filed. We received a notice informing us of our 341 meeting On the same notice, it says.

"The presumption of abuse does ot arise."

Our attorney said we might be a red flag because of our income being over the median; however she was going forward with an aggressive 7 because of our expenses.

Does this mean the trustee reviewed our petion and we do not appear to be a presumption of abuse at this time?

[TEW]

sounds like the UST thinks you should be chapter 13. It also sounds like your lawyer is going to help you out. now would be a good time to get your documentation together for a fight. Do some reading on HELP! posts.

[dogbone33]

Does it say "it does NOT arise?" you only have ot but I am assuming it is suppose to be not? That is what ours said so I think you should be ok. But I am not a UST!

[struggling09]

Sorry about that, it says Presumption of abuse does "NOT" arise. Does that mean we should be okay? Or will they still look into that???

[gophermn]

I was in the same boat. Median income (BLAH)! Our median income was over and we still filed CH7. To be honest, our W2 had something like $97000 but almost $600K in expenses (i.e. 2 homes, cars, student loans, etc).

CH7 was filed and CH7 was approved.

Good luck!

[TEW]

Sorry about that, it says Presumption of abuse does "NOT" arise. Does that mean we should be okay? Or will they still look into that???

it means you are chapter 7

[biotechsolution]

Sorry about that, it says Presumption of abuse does "NOT" arise. Does that mean we should be okay? Or will they still look into that???

When the notation of 'presumption of abuse does not arise' appears on PACER right after you file it doesn't really mean anything.

This entry is done by the court clerk when they enter your bk into the system. All they are looking at is the box your attorney checked on the petition.

[TEW]

When the notation of 'presumption of abuse does not arise' appears on PACER right after you file it doesn't really mean anything.

This entry is done by the court clerk when they enter your bk into the system. All they are looking at is the box your attorney checked on the petition.

You better hope that remark that doesn't mean anything stays that way.
If presumption of abuse does arise it means you have more then $166 per month disposable income.
If presumption of abuse does not arise it means you have less then $166 in disposable income and you can file chapter 7.

[laurannm]

When the notation of 'presumption of abuse does not arise' appears on PACER right after you file it doesn't really mean anything.

This entry is done by the court clerk when they enter your bk into the system. All they are looking at is the box your attorney checked on the petition.

This is correct. It really doesn't mean much, as the UST can change that if they so choose to.

[TEW]

This is correct. It really doesn't mean much, as the UST can change that if they so choose to.

Oh really with out legal grounds? please tell me more!!!

[jessegirl]

Oh really with out legal grounds? please tell me more!!!

TEW is right - the UST cannot just chnaged it because they just think they can.

When we filed ours sais the assumption of abuse does NOT arise, but then 2 weeks later, HELLO the UST steps in and all hell broke loose and its now 6 months of fighting.

[TEW]

TEW is right - the UST cannot just chnaged it because they just think they can.

When we filed ours sais the assumption of abuse does NOT arise, but then 2 weeks later, HELLO the UST steps in and all hell broke loose and its now 6 months of fighting.

And maybe 3 to 5 years in BK and a repayment plan.

[jessegirl]

And maybe 3 to 5 years in BK and a repayment plan.

OMG TEW - Bite your tongue!!!!!! LOL.................

[JRScott]

It means that at this time they do not believe the abuse arises.

However it is possible this status could change later after they review your file.

The most often way a UST challenges it is to challenge your expense list.

[Help!]

When the initial bankruptcy notifications are mailed out, they are simply restating what you claimed in your petition... "presumption of abuse does not arise". Neither the panel trustee nor the US Trustee has reviewed the petition at this point, so this statement is completely meaningless. ALL Ch. 7 petitions have the "presumption does not arise" box checked, unless your lawyer is a REAL idiot.