Presumption of Abuse Filed

[backtoschool]

It's official. Yesterday the US Trustee filed their motion of presumed abuse against our case. This was one day after our corrected means test and schedules were filed. Both showed negative DMI.

I won't find out until Monday what the actual presumption is however my guess is they believe I make far more money that I actually do.

Has anyone dealt with this before and won a presumption of abuse filing?

My attorneys are little help at this point as they seem to apply the line "don't worry" to every situation. Honestly, I think they are in over their head on this one.

Question:

Would you allow a conversion to a chapter 13 even though the likelihood of getting a plan confirmed is nil or would you face your creditors again and attempt debt settlement with the possibility of refiling a 7 again later. The chapter 13 trustee in our area has a hand book that states if your case is converted from chapter 7 to chapter 13, you can NO LONGER file for another chapter 7. Not anytime in the future. Is this true?

I just don't know what to do or where to turn. The stress is overwhelming and frankly just not worth it anymore. I don't confide in anybody so this board is my only outlet.

Any help and ALL opinions are welcome.

Thank You
ST

Hi Screentest,

Can you list your expenses here? That would help us figure out what the US trustee might be finding objectionable.

Here are some expenses that are red flags for the US Trustee:

1. Auto payments in excess of irs standards for your geographical area (usually any auto payment over $450 or so will be a red flag)

2. Student loans claimed as an expense (most districts do not allow student loans to be used as an expense on your schedules.)

3. Food/Entertainment expenses over irs standards.

4. Daycare, private schooling, private lessons etc. that are excessive.

5. Mortgage that is over the irs standard for your area.

Also, as far as income goes, here are a couple of red flags for the US trustee:

6. Self-employment

7. Unemployment when you formerly had a high income, or a huge income drop when you are still in the same career/field etc...

If you are being flagged in one area, it might be possible to find legitimate expenses in another area, so don't despair.

[screentest]

It's official. Yesterday the US Trustee filed their motion of presumed abuse against our case. This was one day after our corrected means test and schedules were filed. Both showed negative DMI.

I won't find out until Monday what the actual presumption is however my guess is they believe I make far more money that I actually do.

Has anyone dealt with this before and won a presumption of abuse filing?

My attorneys are little help at this point as they seem to apply the line "don't worry" to every situation. Honestly, I think they are in over their head on this one.

Question:

Would you allow a conversion to a chapter 13 even though the likelihood of getting a plan confirmed is nil or would you face your creditors again and attempt debt settlement with the possibility of refiling a 7 again later. The chapter 13 trustee in our area has a hand book that states if your case is converted from chapter 7 to chapter 13, you can NO LONGER file for another chapter 7. Not anytime in the future. Is this true?

I just don't know what to do or where to turn. The stress is overwhelming and frankly just not worth it anymore. I don't confide in anybody so this board is my only outlet.

Any help and ALL opinions are welcome.

Thank You
ST