Wish me luck, Day 56 but storm clouds brewing...

[billycool]

Filed Ch 7 on Mar 19, 341 on Apr 26, so my 60th day is Thursday......the problem is that I feel it's fairly likely that I'm going to get some sort of objection from the UST or, at the very least, a request from them to extend for more time.

I'm above-median and passed the means test, but the UST signalled to my atty about 10 days ago that they're going to look carefully at 'totality of circumstances' and made a request of checking account statements, etc....on top of that my atty tells me last week that he may've accidentally under-stated my income on the schedules and may have to file a new schedule. (Obviously, I'm not happy about that....I hired him because he has a very good reputation, and is supposed to have excellent rapport with the trustees, which may be the case, but I'm seeing now that he's not a details guy...).

On the 'totality of circumstances' issue, the only way the UST would be able to make that case is if he/she reduced my expenses by about $1500/month, as I'm showing a less-than-zero net income after expenses (I pay ungodly alimony). But, my atty says the UST is looking at me as a possible 'test case' for my district due to the high income, so that plus the apparent screw up on my income schedule, makes me think an objection, or a request to extend, is coming.

We'll see.

[punisher338]

Good luck. I hope the UST gets really busy this week and runs out of time for you. What state are you in?

[billycool]

Eastern Dist of VA

I really find it hard to believe the UST will let Thursday pass without an objection, especially with the inaccurate income statement that apparently has to be revised at the 11th hour. Also, forgot to mention, the UST has a creditor, my second mortgage-holder, lobbying him/her to object. They showed up at my 341 and have been on the aggressive side.......

[ColoradoBell]

wishing you luck that the storm clouds pass by.......try to destress and just take things as they come. (I know, easy to say!)

[justbroke]

The UST may be looking at other things. Anyone that has a negative amount for disposable income and isn't surrendering something... can make some people think. If you're including items that you're surrendering, the UST is certainly free to poke at those items and see if the wall comes crumbling down.

In order to be a test case, the UST must be testing some part of the code. Being over-the-median is not a "test" case. A test case would be something like you're surrendering property, but included the payments in your means test calculation and Schedule J. Another "test case" could be the maintenance expenses of two separate households due to divorce or separation. Just being over-the-median is not a test case.

I hope that the 60 days passes without incident, as I know it can be and is nerve wracking for those of us well over the median income. Best wishes.

[billycool]

yep, that makes sense.

I am surrendering a home that I included on the means test, but didn't actually need as my net income is negative even without the mortgage payments on the to-be-surrendered property. With the payments, I'm like 6k/month negative, without I'm about $1500 negative....

The separate households certainly applies, although even if they whacked my food, etc in half, that might negate the $1500, but still put me about zero on net income for the 'totality' test. So, what would then be their dividend in a hypothetical Ch.13?

My only hope is that my atty, who is supposed to be good at schmoozing and rapport w/the trustees, can smooth over any mistakes we may have made and, at the same time, convince the UST that trying to push me into Ch. 13 would be fruitless even if the expenses were cut....and also, therefore, of establishing a test case that would go against them.

We'll see, but at this point, I'm kinda taking the position that I'm expecting a motion to extend or objection and to be (very) pleasantly surprised if that doesn't happen.

[justbroke]

I am happy to read that you (and/or your attorney) have considered different scenarios and what-ifs based on your expenses. I think if the UST does anything, it will just be to coerce you into a Chapter 13.

Yes, the hypothetical Chapter 13 is always the defense.

[billycool]

well...

...I'm prepared to fight against any coercion into a 13, and am going to make sure my atty lets the trustee know that we're willing to go through a hearing, court, etc.. Hopefully, at this late date, this might convince the UST to just move on down the road and approve my 7, especially given the numbers.....I dunno...

In your experience, how common is it for a UST to derail things this close to Day 60?

[justbroke]

In your experience, how common is it for a UST to derail things this close to Day 60?

They usually wait until Day 60 to file an extension or an objection. Just the way it is. They stretch every single day they can. If your attorney has a good rapport with the OUST (Office of United States Trustee) then I don't see any "surprises".

[billycool]

not what I was hoping to hear ;)

Was hoping you'd say that there was some unwritten rule that it was maybe bad form for the UST to derail things this close to the end.......oh well....

[justbroke]

Was hoping you'd say that there was some unwritten rule that it was maybe bad form for the UST to derail things this close to the end.......oh well....

No, that's the normal coarse of business.

However, you usually have a warning. If they did not say anything after filing, prior to the 341 Meeting, at the 341 Meeting, after the 341 Meeting and up to Day 60... then that would be in poor taste.

[frogger]

Good luck.

[billycool]

well, my warning...

...came at about Day 48-50. All was completely smooth before, during, and after the 341 up until about a week ago. In fact, the same UST who is currently up my nose told my lawyer after the 341 that she didn't see any issues and that my case should just fly right through.

Now, it's the exact opposite and, reading the tea leaves, I get the sense that my lawyer expects an objection on or by Thursday. What's weird is that I can't tell from him what it is that's driving this....he keeps saying that I'm high income and that the UST may be looking at me as a 'test case'.....then, he says that the UST wants to see my bank records because she suspects I'm hiding income, which really isn't a 'test case', but just outright fraud, as I understand it. I'm going to ask my atty today why he hasn't simply asked her what the issue is, especially since she said all was fine about a month ago....

[StartingOver08]

Did you supply your bank recrods yet? If not, why not? Most of us that were over median income had to supply bank records. Some of us had to supply 3 yrs of bank records... The best way to overcome this is with documentation.

[billycool]

My atty didn't tell me to....

...and nobody asked for them until the UST did a little over a week ago.

Believe me, I've been very quick and forthcoming with whatever documentation I've been asked to provide, but I didn't think I needed to consider providing documentation that no one, including my lawyer, was asking for.....the 341 Trustee, a month or so ago, gave my atty a laundry list of stuff he wanted....car title information, homestead deeds, etc.....about 10 items....I got all of it to him immediately, but he never asked for bank records. I would have happily turned over bank records....I've got nothing to hide, other than maybe drinking a little too much beer at Hooter's.

Is my failure to voluntarily provide bank records, when nobody asked for them, in itself a red flag for the UST?