341 Phoenix

[Meatstick]

We had our 341 last week.

Only four questions asked:

Are you entitled to proceeds or party to any lawsuit ? Yes. We have a judgment against an individual for property damage.

Are you still surrendering your home ? Yes

"Wife"Are you still unemployed and a full-time student ? Yes

What did you spend your tax return on ? I started to rattle off an itemized list and after a few items he said that was enough. Bank statements showed every single transaction as we use debit card only, no checks.

It all went really smooth even though we were way over the median income and had a huge tax refund over $10k that we spent down. The TT left our judgment alone. Our attorney said it was highly unlikely that the UST would get involved or we would have been contacted by now or the UST would have shown up at the 341. Said there is a small chance but there is really nothing for him to dispute and the UST would be wasting his time. According to our attorney it is acceptable practice in our district to claim the full mortgage payment even though we put down intend to surrender. We are actually current and will stay that way until we decide to move, if we do.

This morning we got this on Pacer:

Chapter 7 Trustee's Report of No Distribution: I, xxxxxx xxxxxxxxx, having been appointed trustee of the estate of the above-named debtor(s), report that I have neither received any property nor paid any money on account of this estate; that I have made a diligent inquiry into the financial affairs of the debtor(s) and the location of the property belonging to the estate; and that there is no property available for distribution from the estate over and above that exempted by law. Pursuant to Fed R Bank P 5009, I hereby certify that the estate of the above-named debtor(s) has been fully administered. I request that I be discharged from any further duties as trustee. Key information about this case as reported in schedules filed by the debtor(s) or otherwise found in the case record: This case was pending for 1 months. Assets Abandoned: $xxxxx.xx, Assets Exempt: $xxxxx.00, Claims Scheduled: $xxxxxx.00, Claims Asserted: Not Applicable, Claims scheduled to be discharged without payment: $xxxxxx.00. (xxxxxxxx, xxxxxx) (Entered: 05/xx/2010)

So now all we really have left to do is sit back and wait to see if the UST decides to get involved and wait for discharge and closure.

[shamed]

What is the UST and why would they get involved after the Trustee says no distribution?

[Meatstick]

From what I have read on these forums if the UST doesn't contact you before or actually show up at your 341 your chances of being audited are slim. The TT basically is there to administer your assests that are not exempt if you have any, and as long as all required information has been supplied and your petition is correct and not littered with discrepancies and errors the 341 goes pretty uneventful.

Some say automatic triggers of UST invovlement are more than $100k unsecured debt and being over the median income for your district. If true we would activate both triggers. We are now 3 weeks post discharge and no contact from the UST yet. So we are now waiting for the 60 day date and if no contact by then we will get discharged and then just wait for our case to be closed.


The United States Trustee Program

The United States Trustee Program is a component of the Department of Justice that seeks to promote the efficiency and protect the integrity of the Federal bankruptcy system. To further the public interest in the just, speedy and economical resolution of cases filed under the Bankruptcy Code, the Program monitors the conduct of bankruptcy parties and private estate trustees, oversees related administrative functions, and acts to ensure compliance with applicable laws and procedures. It also identifies and helps investigate bankruptcy fraud and abuse in coordination with United States Attorneys, the Federal Bureau of Investigation, and other law enforcement agencies.

Specific responsibilities of the United States Trustees include:
Appointing and supervising private trustees 3/ who administer Chapter 7, 12, and 13 bankruptcy estates (and serving as trustees in such cases where private trustees are unable or unwilling to serve);

Taking legal action to enforce the requirements of the Bankruptcy Code and to prevent fraud and abuse;

Referring matters for investigation and criminal prosecution when appropriate;

Ensuring that bankruptcy estates are administered promptly and efficiently, and that professional fees are reasonable;

Appointing and convening creditors' committees in Chapter 11 business reorganization cases;

Reviewing disclosure statements and applications for the retention of professionals; and

Advocating matters relating to the Bankruptcy Code and rules of procedure in court.

http://www.justice.gov/ust/eo/ust_org/about_ustp.htm

[shamed]

Oh, ok. What would they ask for that the regular trustee didnt? It seems like if one doesnt see anything, the other would trust their judgement.

[lrprn]

Oh, ok. What would they ask for that the regular trustee didnt? It seems like if one doesnt see anything, the other would trust their judgement.

Doesn't happen that way. It's rare for the US trustee to "overrule" a local trustee's no assets finding, but it does happen.

There have been several forum members whose local trustee released them as no asset but they heard from the US trustee questioning something about their case. Typically they had to turn over a mountain of paperwork to the US trustee who reviews and decides if the filers really are no asset. At least here in the forum, our members ended up being ok. Just lost a lot of time gathering all the documentation demanded by the US trustee.

[shamed]

I am still kind of new and trying to learn all of these things. I wish I had found this site before we filed but oh well. Our 341 is in the morning and we have over 100k of unsecured debt so anything worries me/us. Alot of it old debt though. More accrued since we have been at 1 income since 01.

[epiphany]

I am still kind of new and trying to learn all of these things. I wish I had found this site before we filed but oh well. Our 341 is in the morning and we have over 100k of unsecured debt so anything worries me/us. Alot of it old debt though. More accrued since we have been at 1 income since 01.

Good luck! Looking forward to you coming back here and telling us that all went well.

ep

[Meatstick]

I am still kind of new and trying to learn all of these things. I wish I had found this site before we filed but oh well. Our 341 is in the morning and we have over 100k of unsecured debt so anything worries me/us. Alot of it old debt though. More accrued since we have been at 1 income since 01.

If your 341 is in Phoenix the TT will call you in groups and there is usually 10 cases waiting to be called to the bench. Everyone else in the room will get to hear your dirty laundry but its not really that big of a deal. As long as you have an answer for every question the TT asks you will be done in less than 5 minutes and then join the 60 day club.

I wouldn't sweat it one bit it is really pretty painless.

[shamed]

Thanks. We are ready as we will ever be I guess, lol. If we get questions like yours, I am not too concerned. We havent done anything over the past 100+ days so I guess it will be the standard questions. I imagine he will ask what we might have spent our tax refund on, dont know but we have our list of stuff.

By the way, what is the median income?

[jsofaz]

I'm in Phoenix and we had our 341 recently. The day we were there the trustee had 6 cases per 30 minutes. We were next to last in our group so we heard most of the other cases. He asked everyone the same standard questions, then had a few other questions for each case. It was different for each case. He asked one person how they paid for their attorney but didn't ask anyone else that. He did not ask us how we spent our tax refund, just asked how much it was and was it received before or after we filed. I don't remember him bringing up taxes with anyone else.

Point is, I believe each trustee has his own way of doing things. And, even with the same trustee, questions each case differently.

[wnguyen]

So I have this pretty silly question: BK trustee and UST are 2 different people? I thought they were the same.

[Meatstick]

They are two different people with two very different sets of responsibilities concerning the bankruptcy code. The link I posted above is a pretty good read.