2 days before objections done shocker!!

[edwards2]

renee49 - boy do I know how you feel. we had similar thing happen to us. ONE day before our discharge we got a letter from the U.S. Trustee filing a motion to extend Time in our case. I was devastated and scared to death! It was on a Saturday and Monday was a holiday so I called our attorney at home...needless to say he was NOT pleased but I didnt care. I was beside myself. I am the poster child for worrying too so I can truly feel your pain. The trustee asked us for our life history dating back 2 years. We had pages of stuff she wanted us to provide which we of course did. I immediately went to PACER and it had this code that said 707 which meant possible substantial abuse. That really frightened me because I knew we were werent trying to hide anything. Anyway we ended up having a 2004 Exam with the U.S. Trustee and our lawyer. It turned out she was questioning our private school tuition expense because it was over their limit. Our lawyer said she might also question my not working full time when we owed medical bills, creditors, etc. The fact was I had worked full time and my hours were cut. In her defense she didnt know that. We also had to submit our reasons for filing, She was visibly shocked at what we had gone through. I think it also helped that despite our medical issues we still try to meet our obligations for 3 years. . Bottom line is we were completely frank with her even though it was embarrassing. She turned out to be friendly, compassionate and non-confrontational. She never asked about my employment although I explained that to her in our statement. So I totally agree that you contact the trustee, find out what she/he wants and comply. Above all BE HONEST...we told her the whole sordid story and I think once she understood that she recommended our case be discharged. It is a bummer you found out at the last minute but you havent done anything wrong so dont worry. Keep us posted.

[Genenco]

There you go! Knew someone would have better info!

[renee49]

thanks for the support, edwards2. I remember reading about your situation. This notice wasn't placed by the US trustee but by the one at our 341. We answered all of the US trustee's questions weeks ago and gave her a very detailed explanation of how we got into our situation and never heard anything else until this asset noticem which was placed by the 341 trustee. I did check several cases yesterday that we had listened in on before our 341 and there were 2 that had notices of 2004 exams as of yesterday and 2 that were convert to chapter 13 or be dismissed, so our situation could be a lot worse. I will let everyone know after my call tomorrow morning. I won't get any work done until I talk to this trustee and find out what he wants.

[AAAArt]

You might want to PM Edwards2. She's not on every day any more, but had a similar situation happen a day before discharge. They had a private conference with the U S Trustee and cme out fine.
U S Trustees are infamous for doing things like this on the last day before discharge. Then for it to happen on a weekend is even worse. I think the best advice is to request a meeting w/ the trustee. Since you don't know specifically what they are after, an atty might not be of much use at this point since they would have to review the entire case, just as if they had filed it originally. After you meet with the trustee or find out what the want would be the time to contact an atty. possibly.
Bummer, but best wishes, Art

[StaciMM]

A couple of thoughts/questions... I don't think the new 401k is the problem. He can't claim assets that you came upon after filing, and at the time you filed that 401k had only a couple of contributions in it. Not to mention you would lose 20-30% for closing it out prematurely. You can be glad that the US Trustee isn't seeing that investment as reason for a 13 and (the regular trustee makes no money off of a conversion as he wants assets). That $35/week investment would be enough for a 13 payment.

Has the topic of your tax refund come up? Or did you have anything else that you could imagine the trustee arguing about how much you claimed for the value?

[renee49]

hey Staci

Everyone including us received a flier at our 341 and we also received a letter from the trustee 12/21 reminding us to turn over our tax refund. Any tax refund we get back goes to the IRS because of back 2003 taxes, so we are in an installment plan and a copy of that plan was given to the US Trustee.

[StaciMM]

Based on the flier and the 12/21 notice, sounds like your trustee might automatically require to see everyone's taxes-that would be enough to mark it as an asset case. If that is the issue-once they see that you have no refund, it would revert to a no asset.

[renee49]

I bet you are right. I plan on calling tomorrow morning just to put my mind at ease. I figure we probably won't get anything in the mail for a couple of days. Hedid verify from everyone's state and federal income taxes for 2004what their refunds were at the 341.

[edwards2]

renee49 - trusting soul that BK trustee...you already submitted all of your IRS information and supporting documentation to the U.S. Trustee(otherwise known as the 500 lb gorilla) and your BK trustee still wants what...more proof? An IRS invoice/bill isnt legal-proof enough? Staci is probably right...he wants to see for himself you arent getting a refund for 2004. Maybe he thinks what you are entitled to receiving is more than you owe? Regardless, I think you will be okay. By the way we didnt get a flyer at our 341; the trustee did ask us about our refund but that was it. Was it entirely necessary for the trustee to talk about it at the 341 and send you a follow up letter as well?

[renee49]

at the 341s we watched before ours, the trustee gave every single person and I think we sat through 10 341s because they were running behind, but he gave everyone single one this bright yellow paper and said he wanted to see their refunds. he was very specific about it. We do owe more than our refund will be so he won't be getting anything but we're doing our taxes as soon as those W2 hit our mailbox. I do them ASAP anyway for the girls' financial aid. I guess the trustee has to keep himself in those Italian dress shirts. He sure had on one at our 341! A very nice one, too.

[renee49]

Just spoke with trustee's office and the notice of assets posted 1/7/06, is for the 2005 income tax refund, so provided we don't get any suprises in the mail today and Pacer doesn't change again, we should be fine.

I so appreciate everyone's responses and support. You guys are awesome.

Filed 10/14/05.
341 concluded 11/14/05.
Last day of objections 1/9/06---TODAY.

[StaciMM]

Glad to hear it!

EAch trustee is different. Most seem to not bother w/ tax refunds unless they are pretty certain to get something. Yours seems to have the opposite mentality-look at them all just in case...