Conversion from 13 to 7

[workerbee]

My husband and I have been in ch. 13 for a few years, but our circumstances have changed, and our lawyer advised us to convert to ch.7. We agreed, and our meeting of creditors is coming up soon. My husband's typical income is what we filed the ch. 7 on, but for the past couple of months he's been working extra to help pay for Christmas and to pay the attorney's fees. We just got a letter saying we need to bring the past two month's bank statements to the meeting. These will show we're making more than we claimed we're making, but this is not typical. Will the trustee go over our bank statement with a fine-toothed comb? I also sold some DVDs, video games, vintage fishing lures, old lawn mower, and clothes to help pay for extras, and the deposits are on the bank statement. How does the trustee use bank statements in determining our eligibility for ch. 7, if at all? Thanks for your help.

[StaciMM]

I don't really know how your trustee will review the extra income. One thought I did have-the items you sold, were these listed as assets and did you have exemptions to cover them?

[edwards2]

I wouldnt stress about it. You can explain why there is a difference and that it is a temporary "fix." The trustee is looking for disposable income to pay the creditors. My husband also made a few extra dollars to help defray legal costs, etc., so we had a sizable deposit showing on our statement as well but the trustee never said anything about it. Of course the difference could be that she asked us for years of bank statements - not months. I know she went over the preceding 6 months before filing very closely because she asked us about several checks(paid out) but that was it. Make sure your attorney knows in advance. Unless the difference is thousands of dollars I cant imagine the trustee would have a problem.

[workerbee]

None of the items I sold were listed as assets, and I sold them at garage sale prices for a total of $730 dollars. Most of this went to pay my atttorney, and I still owe him an additional $600. My main concern was the additional income my husband made. Can the trustee say something like, "Well, if you can do it to buy gifts, you can do it to pay creditors?"

[StaciMM]

Talk to your attorney about this. It might seem like nothing, but it could be viewed by the trustee that you are hiding assets. (Not listing items and then selling them.)

None of the items I sold were listed as assets, and I sold them at garage sale prices for a total of $730 dollars. Most of this went to pay my atttorney, and I still owe him an additional $600. My main concern was the additional income my husband made. Can the trustee say something like, "Well, if you can do it to buy gifts, you can do it to pay creditors?"

[AAAArt]

Even though the Trustee only asked for 2 months, why not take them 6 months to show the discrepancies and explain that husband can not work overtime all year round due to it being seasonal or due to his health, There's nothing that says that you have to work overtime. Art

[bkfiler]

its best to talk with your attorney about these things. the extra income could raise a flag. yes the trustee looks at the statement closely. it is important to bring up the extra income and the purpose ahead of time so you dont look like you are hiding it. however, do what your attorney suggests.

now is not the time to start making more money, change things, do this or that, etc. before a 341 meeting.

[Lightning]

If you can work to make extra money to pay for Christmas presents, you can work to make extra money to pay your debts.

[workerbee]

Thanks

Thanks for all the input. I spoke to my lawyer, and this is not uncommon at Christmas time. As long as we explain to the trustee what the extra income is for, it shouldn't be a problem. It's the only time during the year at my husband's company that this extra income is available, so we don't have a problem.

And a special thank you to Lightning. If my husband was able to work 7 days a week, 365 days a year all year round, I'm sure it would make our creditors happy. Unfortunately, his company only offers it in November and December. He volunteered for this to buy a few presents for our kids, but I suppose he should have sent in on to Bank of America. I'm sure their CEO's had a lousy Christmas. Our extra $600 would have filled those stockings right up!

[stilllaughin]

I agree completely with you Workerbee. You know it is nice to be able to give our children presents at Christmas. During the year, I'm sure your husband likes to see his children also....So nice that everyone sees things the way we do! Blessings to you!