Do you think a trustee is more likely to let a marginal filing go through if ...

[JackBondLove]

it is an asset case enough for him to get a decent payday?

It seems to me that if a trustee is looking at a standard no asset case, he is going to be a bit perturbed that he is working for a such payday - but if the case has some assets (i.e., at least enough to make it worth his time), he may let a marginal case go by (i.e., only ruling it as bad if the guidelines says he must rule as such.)

[tobee43]

i do nowadays. i think the trustees are much harder today. although, i understand it's their job, i do believe there is a joint effort through out the country now to deter people from filing. and, that's one way of doing it!

[HHM]

Honestly, not sure what you mean by "marginal" filing.

A defective filing is a defective filing, any trustee will take issue.

Keep in mind the role of the BK trustee, it is to get and liquidate assets. Generally, if the trustee can get one asset, that gives them a bank roll or reason to get others. For example, by itself, the trustee may ignore $350 of non-exempt funds in a debtor's bank account if that is the ONLY asset. But if there is a non-exempt tax refund of $1500, and $1000 preference, it is not too much trouble for the trustee to then demand payment of the $350.

The US trustee is tasked with the role of making sure the BK filings pass muster and the person actually qualifies for the BK chapter under which they filed.

[DebtEnder]

I think you may be confusing the two types of trustee's involved. The panel TT is looking for assets. The US TT is checking for the case being without issue. The two are not concerned with the others job.

[HHM]

I think you may be confusing the two types of trustee's involved. The panel TT is looking for assets. The US TT is checking for the case being without issue. The two are not concerned with the others job.

That is true to a point, but the Panel TT will notify the US TT if there are issues.

[DeadManCrawling]

I think I went through something similar.

We were a borderline chapter 7 and a lot of our case hinged on pre-filing expenses that were quite high. We had house maintenance and insurance expenses that totalled around 7k per month.

Following BK, those expenses would have disappeared, resulting in free cash flow of 7k or more. I don't know if the law has been interpreted the same since, but at the time in Florida Middle District, you COULD claim these expenses and not be penalized or thrown into a CH 13. It was an odd circumstance.

To show our integrity, if you will, our attorney advised us to not contend the surrender of a fairly nice sports car that needed a transmission. Since we were giving up the house, we were entitled to keep the car under FL's new limits for husband and wife.

However, the attorney said "If you try to shield the car, when you already have substantial and income, the trustee may be more inclined to pursue some of these questions about post-discharge income. That would not be beneficial."

So we gave the BK court the car, worth about 8k, iirc. And it was smooth sailing.

At the time, most other districts considered changing income, due to lessened expenses post-discharge, and would move you to a CH 13.

We were at the right place and time, perhaps. I don't know if those aspects of the new law have been completely defined yet.

Anyone else know?