Chapter 7 Fraud

[tobee43]

i know it seems now like forever, but you will get there!

[cz3ch]

it's enough stress going through this all, usually there are a few and sometimes more than a few "bumps" along the way...but it all comes out in the wash and it will work out.

Yeah, you're right. I think my lack of knowledge (such as the ability for the lawyer to amend my numbers and fix mistakes) really is making me suffer. I was scared that her fixing the mistakes was construed as fraud but I know that if I remain honest and fix the problems I can only go one place. To the finish line

[tobee43]

That's what I was hoping for. Just didn't want to run out of options. Glad my lawyer is fixing my numbers and resubmitting as 13.

it's enough stress going through this all, usually there are a few and sometimes more than a few "bumps" along the way...but it all comes out in the wash and it will work out.

[cz3ch]

remember, and no matter what, everything can be worked out...everything.

That's what I was hoping for. Just didn't want to run out of options. Glad my lawyer is fixing my numbers and resubmitting as 13.

[tobee43]

remember, and no matter what, everything can be worked out...everything.

[cz3ch]

Thanks for all your feedback and help. It's helped me to rest a bit more easy.

[tobee43]

jb has given excellent direction as always.

remember this, the burden is on THEM...fraud is not always easily proven, not always cut and dry:


if the court does move forward, most fraud cases, the defendant won’t likely testify that their intent was fraudulent. thus, the court may have to look to the following as evidence of fraudulent intent:

" A history or continuing pattern of fraud when dealing with creditors
Transfers made within one year of a lawsuit, bankruptcy hearing, or debt collection proceeding
Transfers of all or a majority of the debtor’s assets
Situations where the debtor transferred property to another person yet retained the possession, use, or benefit of the property
Transfers made to a spouse, other close relatives, or friends
Shifting of property to a corporation or other business that is wholly owned by the debtor
Transfers that are unequal in nature and result in lopsided benefits in favor of the debtor "

all of these different circumstances may provide evidence in support of a fraudulent intent. while they may not necessarily prove fraudulent transfer in themselves, they can definitely be damaging for the debtor’s defense. this is especially true if it can be shown that the debtor engaged in a number of the acts listed above.

i think they look more for consistency as opposed to a one time event.

[cz3ch]

Well, it's too late to worry about that now, so proceed forward. Once you have filed, you have filed, and nothing that you do will change that. Honesty solves all problems.........

Thanks, and that's the step I've taken from the beginning. Being honest. As long as I'm honest and truthful I can't go wrong. Just really unnerved about the whole process, guess it's somewhat expected.

[frogger]

I think the fear of filing bankruptcy got the better of me which made me want to pull out.

Well, it's too late to worry about that now, so proceed forward. Once you have filed, you have filed, and nothing that you do will change that. Honesty solves all problems.........

[cz3ch]

You will need to address that check with your attorney. Was it earned income or some gift? Again, just speak with your attorney... especially if it was a one-time event.

It was a one-time payment for a product I provided. I sent her all the information, however after all the questions I've had lately I'm pretty sure she is sick of hearing from me.

[justbroke]

You will need to address that check with your attorney. Was it earned income or some gift? Again, just speak with your attorney... especially if it was a one-time event.

[cz3ch]

I was combing over my expenses and my bank statements and it appears we missed a $500.00 check that was made out to me as well. Can that be included in the amendment? Everything else income wise and asset wise is accounted for but I just found this. Now I'm worried.

[justbroke]

Converting to a Chapter 13 when the expenses are "tight" (borderline) is entirely normal. Hopefully, your attorney comes out with a budget that not only works, but insures that you don't starve and that you can build a "small" savings for emergencies.

[cz3ch]

Yes, you are supposed to look at the petition and numbers before you sign and have it submitted. Usually you would ask your attorney why they made your food bill $700/month rather than the $500 you normally spend. They'll say that it's the allowance per the USTA guidelines and that they maxed it out. It would be the Trustee who then may question the number.

If you tightened your belt already to the point of starvation and you wanted to use the starvation number, that's not what the schedule should show. It should show your reasonable "looking forward" costs/expenses, with an emphasis on the "looking forward" part. A Chapter 13 should not be punitive. It's actually in the Chapter 13 Standing Trustee's best interest -- read "commission"/earnings -- to make sure you stay in plan and survive!

That's makes a lot of sense. Thanks for explaining. I guess my question is do I have anything to worry about now that my attorney is resubmitting my expenses and converting to a chapter 13?

I'm just paranoid about being in legal trouble for my expenses being bloated the first time around and now her having to resubmit.

She said she has contacted the trustee and let him know I'm converting to a chapter 13 due to a change in finances.

[justbroke]

Yes, you are supposed to look at the petition and numbers before you sign and have it submitted. Usually you would ask your attorney why they made your food bill $700/month rather than the $500 you normally spend. They'll say that it's the allowance per the USTA guidelines and that they maxed it out. It would be the Trustee who then may question the number.

If you tightened your belt already to the point of starvation and you wanted to use the starvation number, that's not what the schedule should show. It should show your reasonable "looking forward" costs/expenses, with an emphasis on the "looking forward" part. A Chapter 13 should not be punitive. It's actually in the Chapter 13 Standing Trustee's best interest -- read "commission"/earnings -- to make sure you stay in plan and survive!