Presumption of abuse

[SBS718]

So I unfortunately checked pacer and after my 341 it was entered as a no asset . Thought I was Ok and just had to wait but exactly 9 days later the UST filed a 707b flag- states specifically that debtors current monthly income x 12 is less than the requirements . were at 135k and the median is 111k.

I have searched and I know this means hopefully they are just checking all of the documents to make sure there is no abuse? It states they have 30 days to come up with a decision.

I am filing alone without my spouse - I am in MD and we are very close with expenses - 4 people in our home.
I am nervous - any words of wisdom - my lawyer has all my docs 2 yrs of taxes bank statements for 6 months etc .So i am interested to see if anything else is requested ?

anyone else been through this successfully ? I always assumed I would be in a 13 but i was so happy to qualify for a 7 ... now who knows
Thanks for all of the information folks

[Chrysalis]

All I can tell you is what one attorney told me: "You get some exemptions on the means test, but usually not $20,000 worth".

Do you have a copy of the means test your attorney did? Have you used the calculator yourself on legal consumer's website?

I'm genuinely interested to hear how your attorney "qualified" you for a Chapter 7 when your income is $24,000 above the median. And I'd love to hear from anyone here who has had a successful Chapter 7 with this big of a difference. If so -- how?

[justbroke]

You are certainly an over the median filer and the United States Trustee (UST), not the Chapter 7 Panel Trustee, is "interested" in your case. I'm surprised they didn't show up at your 341 meeting.

In any event, let me just say that "it is what it is" at this point . The UST will do their due diligence and determine whether they believe it's an abuse. You can rebut that abuse if they do make that determination. In some jurisdictions the UST almost always filed this motion just to protect themselves with the easier motion to dismiss for abuse, rather than the formal complaint (adversary proceeding) process for other reasons (such as a totality of circumstances or bad faith).

So how does it read? Are they saying it's an abuse under 707(b)(2)?

In case anyone is wondering, I was well over $140K over the median income. I had a non-consumer Chapter 7 which allows me to go over, but I did meet the test because I had a negative DMI (due to my mortgage costs on my investment properties).

[SBS718]

Thanks justbroke and Chrysalis
We have high mortgage and daycare and 1 car payment .. if we HAD to my spouse would get a car as his is 10 years old and has a lot of mileage - this would likely give us even more help with less DMI
as well as my spouse only is paid 22 times per year so our 6 month look back includes some of this time.I know we gave all our correct information and costs and it was very close on the means test . I am also filing alone and without my spouse so he can deduct his expenses and bills . All I can do is wait and see what happens so far I haven't been asked for anything else and my lawyer all they do is BK so I do feel confident in them.

" it specifically reads
based upon information and belief and subject to further discovery that 1 debtors case should be presumed to be a presumption of abuse under 707b and 2 the product of the CMI multiplied by 12 is not less than the requirements set forth in 704b
it goes on to say they have 30 days to file a motion to dismiss or convert under section 707b
also i have a 707b flag now at the top of my case info

Will let you know how it plays out - is there any rule about the length of time this usually takes ? Thanks again

[justbroke]

TWill let you know how it plays out - is there any rule about the length of time this usually takes ? Thanks again

For this specific objection, they have 30 days to file a Motion to Dismiss for Abuse Under 11 USC 702(b)(2).