Questions from Trustee before 341

[bjc]

This is my first post, but have been pouring over this site for awhile now. The information here is incredible!

My husband and I have filed chapter 13, and our 341 is this Thursday. Yesterday our attorney called with a couple of questions from the trustee. One was when my husband's 401k loan repayments would end, and the other was "How much of the debt was incurred in the past 3 years?" Why would he want to know that? The first question about the loan, I understand, I'm sure he'll increase our payment in a couple years when the loan repayment ends. But what significance is the past 3 years as far as our unsecured debt goes?

Thanks in advance!!!

[lrprn]

This is my first post, but have been pouring over this site for awhile now. The information here is incredible!

It's great to know you are finding the forum so valuable so far - thanks for letting us know!

My husband and I have filed chapter 13, and our 341 is this Thursday. Yesterday our attorney called with a couple of questions from the trustee. One was when my husband's 401k loan repayments would end, and the other was "How much of the debt was incurred in the past 3 years?" Why would he want to know that? The first question about the loan, I understand, I'm sure he'll increase our payment in a couple years when the loan repayment ends. But what significance is the past 3 years as far as our unsecured debt goes?

You're right about the 401K question. Your trustee is very likely considering increasing your monthly payment by the amount of the 401K loan once it's paid off.

Asking about how much unsecured debt you created the last three years could be your trustee's way of probing to find out if you increased your unsecured debt knowing you were going to file and write off some/most of it. Unless you made questionable large luxury purchases in the last year or so, you really have nothing to worry about.

Did your attorney explain what the trustee may have in mind? If he/she didn't, then you need to ask about it directly. That's what you are paying your attorney for - to represent your best interests during your case.

[bjc]

Thank you!! I didn't think of that, I guess I thought 3 years was a really long timeframe? But we certainly haven't made any luxury purchases at all. And we never ever considered bankruptcy until about 3 months ago. I know that's not something we can prove, but it's the truth.

My husband spoke to the attorney to answer these questions, I wasn't home. And he didn't think to ask what it could mean....I obsess over the details...he does not, haha.

Now I'm off to read the '341' section of this forum to calm my nerves for my scheduled meeting tomorrow! Agghhh!

Thanks again for your response, it means a lot.