Is this True?

[helpmeout]

Thanks everyone!

Here's what I have..... Is it enough to get her thrown into 13 rather than 7?

1) She has had a substantial financial change since she filed. She married a man who has a long term career with Microsoft as a software developer. She is no longer paying rent because she moved into his apartment. The man she married is most likely making well in excess of 6 figures.

2) She understated her debt to me. There were 2 loans. The first for 5K and a second for 2K. She noted the 2K loan as disputed. She has never discussed this with me. All I can say for sure is that she took the money and never paid me back.

3) She is currently underemployed and will get a higher paying job in the future. As recently as 2008 she was making almost 6 figures working for Hewlett Packard.

4) She has an unreported revenue stream. If her current and closed PayPal accounts are checked, you will find the money. She is a well known blogger and frequently discussed her financial problems and asked for donations on her blogs. I have no way of knowing how much money is involved but I have read many posts where she thanks people for their generous contributions or gifts.

The bankruptcy court isn't going to impute income to her.

But if you can prove #4 (and I would attend the 341 and ask specifically about her income from those sources and how you know about it, that will bring it to the attention of the Trustee), you may be able to create a big headache for her. Don't know if it will get you your money, but she will not be happy about being ratted out.

[mrskal]

4) She has an unreported revenue stream. If her current and closed PayPal accounts are checked, you will find the money. She is a well known blogger and frequently discussed her financial problems and asked for donations on her blogs. I have no way of knowing how much money is involved but I have read many posts where she thanks people for their generous contributions or gifts.

Well, maybe that she is in good financial shape now, she will be so generous to return the donations, heh? I would love to read her blog, and see how hard she must have had it! haha

[ja181]

Thanks everyone!

Here's what I have..... Is it enough to get her thrown into 13 rather than 7?

1) She has had a substantial financial change since she filed. She married a man who has a long term career with Microsoft as a software developer. She is no longer paying rent because she moved into his apartment. The man she married is most likely making well in excess of 6 figures.

2) She understated her debt to me. There were 2 loans. The first for 5K and a second for 2K. She noted the 2K loan as disputed. She has never discussed this with me. All I can say for sure is that she took the money and never paid me back.

3) She is currently underemployed and will get a higher paying job in the future. As recently as 2008 she was making almost 6 figures working for Hewlett Packard.

4) She has an unreported revenue stream. If her current and closed PayPal accounts are checked, you will find the money. She is a well known blogger and frequently discussed her financial problems and asked for donations on her blogs. I have no way of knowing how much money is involved but I have read many posts where she thanks people for their generous contributions or gifts.

In addition to talking to an attorney yourself, I would immediately tell the trustee about all of this.

And make sure you show up to her 341.

[NewDawn]

Here is my question. What exactly did she report as her income on her Schedule I? Was it the 80k amount that you referred to earlier? I'm confused because you say she is "underemployed." Does that mean she is not making 80k anymore?

Also, what did she report as income on her 2009 income tax return? You say as late as 2008 she was making almost six figures. That implies that her 2009 tax return showed a drop in income. Is that correct? Also, the six calendar months right before she files is what determines whether you're above or below the median income. What does her means test show?

Although you haven't come right out and said it, it appears that her income might have changed. Otherwise, why would she have asked for donations and pleading financial distress online?

Please fill in the details.

[amalejko]

1) She has had a substantial financial change since she filed. She married a man who has a long term career with Microsoft as a software developer. She is no longer paying rent because she moved into his apartment. The man she married is most likely making well in excess of 6 figures. (Not an issue if he is not filing BK)

2) She understated her debt to me. There were 2 loans. The first for 5K and a second for 2K. She noted the 2K loan as disputed. She has never discussed this with me. All I can say for sure is that she took the money and never paid me back. Do you have it in writing? Her husband is not liable for her debt prior to their marriage. Is it a no-asset case?

3) She is currently underemployed and will get a higher paying job in the future. As recently as 2008 she was making almost 6 figures working for Hewlett Packard. It depends on if she is filing 13 or 7 and when her income changes; she will be asked if she expects her financial situation to change. If she says no and then goes back to a six figure job soon after the BK, there could be an issue.

4) She has an unreported revenue stream. If her current and closed PayPal accounts are checked, you will find the money. She is a well known blogger and frequently discussed her financial problems and asked for donations on her blogs. I have no way of knowing how much money is involved but I have read many posts where she thanks people for their generous contributions or gifts. All you can do is print the posts and take them to the courts and tell them you have a suspicion of abuse and object to her BK. Just be careful as there are laws protecting her.

Having a 6 figure income does not exclude you from BK. It is a debt to income ratio. If she is lying about her income, that is another thing.

[Yellowsnow]

[keptdigging]

If she voluntarily left a job to qualify for a Chapter 7, that could be considered an abusive filing (but might be tough to prove.)

But the mere fact that she once made a lot of money and will probably again in the future applies to a lot of people here (at least in our hopes and dreams), myself included. Your case is unfortunate, but our creditors don't put themselves on hold and patiently wait for us to replace our income. Instead they jack up our rates to 30%, pile on late charges, and sue us so they can confiscate anything we might have left in our bank accounts. This might be her situation too in which case she's doing the right thing (mostly) and you're just the tragic collateral damage. It's not being destitute that makes bankruptcy necessary... it's having debts you'll never be able to pay without hitting the lottery. And when you're down financially banks pile on.

I say mostly because the true "right" thing to do is to pay back your family and friends (who aren't charging you any interest and just want to be whole again) when you get back on your feet if you can. That's what I'll be doing.

Now if she's telling material lies in her filing that's fraud. No sympathy for that. And someone who "mistakes" $2K for $7K does seem to have a precarious relationship with the truth.

And, of course, I am not a bankruptcy attorney!

[Yellowsnow]

If she voluntarily left a job to qualify for a Chapter 7, that could be considered an abusive filing (but might be tough to prove.)

But the mere fact that she once made a lot of money and will probably again in the future applies to a lot of people here (at least in our hopes and dreams), myself included. Your case is unfortunate, but our creditors don't put themselves on hold and patiently wait for us to replace our income. Instead they jack up our rates to 30%, pile on late charges, and sue us so they can confiscate anything we might have left in our bank accounts. This might be her situation too in which case she's doing the right thing (mostly) and you're just the tragic collateral damage. It's not being destitute that makes bankruptcy necessary... it's having debts you'll never be able to pay without hitting the lottery. And when you're down financially banks pile on.

I say mostly because the true "right" thing to do is to pay back your family and friends (who aren't charging you any interest and just want to be whole again) when you get back on your feet if you can. That's what I'll be doing.

Now if she's telling material lies in her filing that's fraud. No sympathy for that. And someone who "mistakes" $2K for $7K does seem to have a precarious relationship with the truth.

And, of course, I am not a bankruptcy attorney!

Her 341 is first week in August. I'm not sure how to find out what happened. Would PACER have it?

[NewDawn]

PACER will show if her 341 meeting is concluded and whether she is an asset case or not. It will also show if there are any objections filed. Just check on docket report, I believe, and it will show the latest filings.

[Yellowsnow]

PACER will show if her 341 meeting is concluded and whether she is an asset case or not. It will also show if there are any objections filed. Just check on docket report, I believe, and it will show the latest filings.

I'll be checking. Thank you.

[Phil]

I will be curious to see the outcome.

In my district your letter would mean nothing - you would have needed to file the correct motion with the court - an AP. Since you didn't do that, if they give her the discharge you have zero chance of getting anything. Had you filed an AP and proved fraud, you would have had a chance. Her listing the wrong amount also would mean nothing in our district, the creditor itself it what is important.

Also, bankruptcy is as of the date it was filed - you mention repeatedly about a change in circumstance, that would seem irrelevant since bankruptcy looks at the date filed and the prior six months.

I certainly understand you being upset, but I also don't believe things aren't always what they seem. You are rather emotional about this and maybe don't know all of the facts.

Most people don't readily file bankruptcy just to start a new life, particularly one in which their lifestyle is improving. It makes no sense if he has all this money that she HAD to file bankruptcy to start her life with him. Maybe you are too emotionally involved. JustBroke gave you the best advice.

[NewDawn]

It doesn't make sense to me that she would plead financial distress online if she truly wasn't having financial difficulty. Are you sure her hours didn't get cut or something to that effect?

[Pandora]

I can not attend the 341 meeting for financial reasons. I am not wealthy and the $7000 loan to XXXXXXX was from my retirement funds and can not be easily replaced. XXXXXX is now much better off than I am. I am just a private citizen, not a lawyer, and the above statement is my opinion and belief in this matter. I have not been privy to all the financial details of Ms. XXXXXXX life. Most of the information included here came from conversations with Ms. XXXXXXX or what was published in her blogs. The information on her marriage came from her blog and the Clark County, Nevada, Recorders Office.

This entire statement just made you sound very vindictive in what your goal was - and as someone else pointed out - depending on the district, the trustee may just poo-poo your letter off. If you really had that much interest in recovering your 7K as a creditor - and not sounding like an ex-husband, you would show up at the 341 based upon this letter you wrote and all the digging you've done into her background, but then again, thats just my opinion and doesnt matter much

+3 for Justbrokes advice way back when.

[Yellowsnow]

This entire statement just made you sound very vindictive in what your goal was - and as someone else pointed out - depending on the district, the trustee may just poo-poo your letter off. If you really had that much interest in recovering your 7K as a creditor - and not sounding like an ex-husband, you would show up at the 341 based upon this letter you wrote and all the digging you've done into her background, but then again, thats just my opinion and doesnt matter much

+3 for Justbrokes advice way back when.

I have no doubt I've lost the money. There are some times in life when you just have to do what you can to defend yourself and not take it lying down. What I said in that paragraph is true and I don't have the discretionary funds to fly to Seattle for the meeting or pay $200 per hour for an attorney.

If I had done nothing, I would feel like I had aided and abetted her fraud. And that my silence would have represented tacit agreement making her actions more acceptable. In reality, I don't much care if someone takes a multi-billion dollar corporation for a few bucks....but when they take my money, yes, it makes me angry. Angry at her and with myself for being such a schlump to have loaned her money.

When someone files bankruptcy fraudulently, it hurts all of us. Especially those who have legitimate filings and reasons to file. She knew she was getting married when she filed and that her financial situation was set to do a 180. To me, that screams fraud. And flies against the whole intent of bankruptcy. If they disregard my letter, so be it. At least I did something. There is no such thing as equal access to justice for people with no money and under such short time restraints. No doubt if I had had more time, I would have done a better job and found an attorney willing to help me for a more reasonable amount of money. All the attorneys I spoke with were more than willing to help me file BK for a reasonable fee but it was $200 per hour to try to recover my money.

That's life when you don't have deep pockets and people with attorneys take advantage of you. An average guy doesn't stand a chance. Years ago, I knew a somewhat famous lawyer, Percy Foreman. He died several years ago. He said, "The man with the most money will always win. He can afford better lawyers." And it's true.

I will let you know what happens.

[Pandora]

"... Angry at her and with myself for being such a schlump to have loaned her money.

When someone files bankruptcy fraudulently, it hurts all of us. Especially those who have legitimate filings and reasons to file. She knew she was getting married when she filed and that her financial situation was set to do a 180. To me, that screams fraud. And flies against the whole intent of bankruptcy.

I understand your frustration - really I do, however from the outside looking in - your letter appears to read more like an ex-husband bent on revenge and jealousy that "she has" and "I dont" - type of thing.

Her getting married has no barring whatsoever on her filing bankruptcy. Married couples file separately all the time and you dont know the condition of her marriage arrangement. Could be that finances are separate and he required her to file due to too much debt - you just dont know. You're going off of emotion it appears, and to some degree - you do have that right, however when you allow emotion into it, it allows that "ex-husband" to come out vs. the creditor.

You dont know what your ex-wife's intention may have been towards you - perhaps she planned on paying you back AFTER her discharge, its been known to happen. However, now that you've gone and written the trustee, that may have flown out the window. Vinegar, honey and flies - remember? Did you have an agreement with her to begin with - a timeframe or payment plan to when all of this was to be paid back? Again, to me - as an outsider looking in, it looks vindictive on your part - and she's in the right - not you. Its her right to file BK, regardless of her new marriage and her new husbands income, or even her potential future earnings. Maybe her new husband doesnt want her to work... again you just dont know all the facts or details of her life, only what you pieced together off of the internet. As you stated, its all your opinion - however opinions dont matter, the law does when it comes to BK, unfortunately. I'm sorry you feel taken by her, but you really dont know what her intentions were (or at least you havent posted them) because you havent really talked to her directly regarding what she owed you, right?

I wish you all the best in this, sincerely - and hope you do get your money back at some point in time, Maybe she'll stand up and do the right thing, you just never know.

Good luck to you.