Letter from US Trustee - Good News?

[Bizeeparnts]

A couple of weeks ago I posted that we received a letter from the US Trustee requesting documentation of all of our expenses. I got everything together, along with a letter of explanation and sent back the next day.

Today I got a letter saying, "Thank you very much for your letter of October 26, 2005. Based upon the information provided, we are concluding our review and closing our file."

I think this is good news, yes? I just want to make sure I am reading correctly that we've passed their review for our income/expenses as will remain in Ch 7 and not be recommended for a 13? What do you all think?

I hope this is what this means. That would be 1 trustee down and 1 to go. Still waiting to see if the other trustee is going to send someone to our house to look it over since my paperwork was mucked up. I figure no news is good news. Its been a week since our 341 and nothing yet. But, I know there is still plenty of time. I'm trying not to stress and leave it in God's hands, otherwise I would be a basketcase.

Thanks everyone for your opinions and advise!
Bizee

[Minnymouth]

Sounds like the US Trustee was looking for something to sell but found NOTHING......
That's a good sign.....
If 341 meeting went well, and there are no objections from the creditors then you will remain in Chapter 7 and get your discharge shortly.

Sounds like it's a GO and Looking Good,

Minny

[newstart]

I don't know anything about how this process works. If a creditor files a dispute you can be placed in chapter 13?

Newstart

[FoolAndHisMoney]

I don't know anything about how this process works. If a creditor files a dispute you can be placed in chapter 13?

Newstart

If a creditor disputes something it's usually a portion of the debt that they feel you incurred with no intention of paying. If this was to happen you can either reaffirm usually 50% (depending on if it was before the presumption period) and pay it out. If you don't settle, then it would go to court and the judge would decide and they can usually tell. The creditor would have to prove you tried to stiff them and make a good case to the judge. Time between major charges and filing is usually your best defense.

If you have like disposable income usually more then $100 a month after your reasonable expenses are paid, the the US Trustee will file a motion to have your case either dismissed or converted to a chapter 13.

[bkfiler]

you are put into a chapter 13 if you have enough disposable income to pay the creditors a portion of what you owe them. its got nothing to do with a creditor that wants to object to your discharge.

if they do object then they file a lawsuit within your bankruptcy called motion to object to discharge. usually they will contact your attorney before that and try to get a negotiated settlement from you instead.

regardless of that, all other debts keep going through the process and move toward the discharge date. all of the debts will be dishcarged even while you are still working on the objected to debt. the outcome of that is a separate issue.

[newstart]

That is certainly a relief I thought that you would be required to pay all creditors if one objected. Thank you for clearing that matter up for me.

[FoolAndHisMoney]

That is certainly a relief I thought that you would be required to pay all creditors if one objected. Thank you for clearing that matter up for me.

The only time you would get a "global denial of discharge" is fraud such as hiding a major asset such as a house or car, boat, etc. and someone finding out. These cases are extremly rare, but do happen. Personnally I thing this bunch gets what they deserve. The system still allows reasonable exemptions depending upon your state and there's no reason that anyone has to resort to this.