2004 exam update

[Vicoli77]

Had my 2004 exam. I thought it went well. I guess not. He is asking for more bank statements, declaration for my car insurance for 2 years. I have no idea why about this one. And then also about information on 2 flights I took in the last 2 years. I don't think he is happy about a surgery I had to pay for that was reconstructive and he is trying to push it was cosmetic. When it was not but whatever. I am filing chapter 7 Can he dismiss my case based on the surgery or ask for that money and pay him what I paid in the surgery? I am just at a loss my attorney knew about all of this and said I would be fine. I don't know how much more my stomach can take. If the trustee asks u to pay how long do u have to pay him the money?

[justbroke]

There's not way to know what specifically piqued the United States Trustee's (UST's) curiosity in your case. There is definitely something related to whether you are deserving of a discharge under the terms of a Chapter 7 bankruptcy. The UST can probably look back at least 2 years and was probably just following the money. Asking about flights and non-essentials is likely to determine whether money was spent frivolously.

This would be the first time that I have hears about the UST asking for things related to travel outside maybe 90-120 days. But, to me, it sounds like the UST is making sure that you haven't hidden assets (money/property), or are not deserving of a discharge under Chapter 7. The latter is really about whether your financial actions show what a reasonable person would do under the same circumstances.

I can't tell you what triggered this as I haven't really read much about the UST "bothering" any debtor that is under-the-median income (without a reason). If you are under-the-median and had nothing really interesting on your Statement of Financial Affairs, then there is something else there that triggered the UST's inquiry ('anonymous' tip?). In any event, rather than speculate, just try to satisfy the UST's questions and requests for documentation. That's all you can do right now.

Maybe your attorney knows more about what 'specifically' the UST is looking at. I can tell that it's definitely a review of your financial history (money in and money out). But what triggered this would be interesting to know.

[Vicoli77]

So they can deny your discharge if they think spent money wrong? Are u able to refile later? What triggered this is my sons father paid back child support interest and it was almost 7 k. So they thought I was hiding something that was making interest but now I think he is looking hard for other things. I am worried this will get dismissed and I will be screwed with all this debt. How do people handle that. As far as my surgery could they ask me to pay the trustee what I paid for that? I have no idea why my attorney would not of told me all this to begin with.

[flashoflight]

Do you have above median income? That by itself will pique the interest of the UST in many cases. You can be way above median and pass the means test legitimately, but the UST will want to gatekeep as many above medians as possible from a 7.

With the surgery, why won't insurance pay for it? Is it because the surgery is not medically necessary according to the insurer? How can you afford the out-of-pocket if you're broke enough to pass the means test? Are you using the cost of the surgery to help pass the means test?

The history of your auto insurance is to make sure you didn't jack up the premiums on the eve of bankruptcy to help pass the means test.

In my parent's chapter 7, they went four years back for a house sale that looked like a fraudulent transfer. The UST can dig further back if they want for bad acts that hve a longer lookback.

[justbroke]

I would not worry about this and I'm sure your attorney wasn't expecting this... especially if you are an under-the-median income filer. It was likely something int he SOFA and the UST wanted to dig deeper. The 2004 Exam is to dig deeper, and allows the UST to make a more informed decision on whether or not to file a complaint objecting to the discharge.

From what I read here, I don't see anything glaring, but they seem to certainly be concerned about the flow of money.

Your attorney is in the best position to understand your finances up to the filing of the bankruptcy. Since your attorney is confused as to why this occurred, then there must be something in the filing or, as I eluded to earlier, someone you know told the UST that you were hiding money or lying on your petition. (Jealous ex-spouses, non-custodial parents, relatives, and even neighbors have been known to "tip" the Trustee/UST that they think the debtor is hiding things.) Since I don't know the scope of why the UST is so interested in your case, I can't tell you how it will end.

I'm sure your attorney is baffled and perhaps your attorney can ask the UST why they needed this much background on an under-the-median income filing.

[Vicoli77]

I met with my attorney today and still have no real answers. He said he had no idea why the trustee is doing this. But that the interest from back child support that showed on my taxes was the first flag. Also would maybe be thr money I had from a surgery that I had. Yes I had to pay cash for this surgery as insurance would not cover all of the surgery. Due to infections and a hernia. I had hernia repair along with abdominal repair with skin removal due to infections. Keep in mind I have lost over 150 lbs. This is not for looks. It was due to pain. The thing that gets me is my attorney knew about this. He told me that as long as I had the surgery before we filed it would be fine. The kicker is today my lawyer tells me he thinks everything will be fine but if this goes to trial that I would have to hire a different attorney maybe. Why on earth would I have to do that?? When I ask him he kind of danced around the subject and said he could not be a witness. WhT does that mean. I am making my self sick over here. Is it better for me to just withdraw this mess and would I be able to start over ar a later time? I have no ide what to do. I feel like I am getting screwed over and was not told the truth by my lawyer

[justbroke]

You will need to see what happens and whether the UST is going to seek dismissal of your case. Unfortunately, a complaint to deny the discharge is what they call an adversary proceeding which is a little more complex. Your attorney may feel though they are inadequate to represent you in that type of a proceeding.

I don't think your attorney knew that the UST would become interested in your case. Generally speaking, money spent before filing is usually not a big issue. There is something there that even your attorney did not see. Still, to this point, I don't understand what's going on and it sounds like your attorney doesn't know just what is the UST's angle here. Unless and until the UST puts their cards on the table, by filing a dischargeability complaint, then you will not know. Again, the UST may just decide to not seek dismissal. No one knows at this point.

You can't simply withdraw a Chapter 7, but if the UST seeks dismissal and wins, you can just let it dismiss... or you can convert to a Chapter 13.

[Vicoli77]

Do u have to qualify for chapter 13 or can anyone file chapter 13?

[justbroke]

Do u have to qualify for chapter 13 or can anyone file chapter 13?

Anyone with "regular income" can file a Chapter 13 and likely have their Plan of Reorganization confirmed (approved). Not everyone welcomes the rigors of a Chapter 13, and some people actually can't fit into a Chapter 13 (irregular income or infeasible plan).

[shipo]

Do u have to qualify for chapter 13 or can anyone file chapter 13?

I think there are at least a few "disqualifying" factors for Chapter 13s, the most obvious is the amount of your debt; don't quote me on this, but off the top of my head I seem to recall the limits are four-hundred-thousand dollars in unsecured debt and one point two million dollars in secured debt. If you're under those thresholds, then "qualifying" should be pretty easy if Chapter 13 is the avenue you wish to take.

With the above said, and as justbroke alluded to, Chapter 13s are not for the faint of heart; attorney fees alone are rather more expensive than a Chapter 7, and once approved, you need to live with the yolk of monthly payments to the Trustee for either 36, or more commonly 60 months.

[Vicoli77]

Thank u for all the responses. I just found out he extended this again until 10/7. My attorney is clueless as to what the deal is. Maybe I picked the wrong attorney I don't know. He did tell me the only way he would not help if this went to trial is if he got called as a witness. Why would he be called as a witness. Of course he then said well I don't think that will happen but he did not think any of this would happen either. My anxiety is threw the roof. My debit is basic really credit cards, a loan, and medical. Not enough equity in house to sell or car so keeping those. My debit is a out 55 k or so. If I get all this debit back because I am denied (thinking the worse case, as that is what my anxiety leads me to) what is my best option? A non for profit credit agency to help negotiate with the company's and them put me on a monthly payment? I have never looked at these types of companies before. Any words of wisdom?

[justbroke]

You could go into a Chapter 13 at any point, so long as you have regular income.

The simple truth is that it is what it is at this point. The UST is interested in your past financial dealings for some reason. I can't speculate on what reason the UST would have to dig deeper. Only the UST could tell you. Your attorney is clueless because there are no clues as to what the UST is actually doing... unless there are things the UST knows about your financial case that your attorney does not know. Only the UST has the clues.

There is something there. Your attorney doesn't know what it is. Perhaps you may not even know or understand the implications of something that you have financial done. Only the UST knows what is in the UST's mind and what they are picking apart. You will not know until the UST decides to proceed with a complaint to deny discharge (objection to discharge) or they drop their objection to your discharge.