Settlement in Chapter 7 Bankruptcy

[Atlanta7]

If UST has filed an adversary proceedings in the chapter-7 case. Does Debtor have option to sign something as a compromise to agree with UST's finding and let the UST administer the bankruptcy , so the debtor does not have to face the lawsuit litigation? What is that compromise/surrender/settlement document is officially called? How does that process typically work?

[justbroke]

If the UST is filing an adversary proceeding in a Chapter 7, it's not a negotiation. The UST files because they believe that the debtor is not deserving of the bankruptcy discharge under Chapter 7. You do not want the United States Trustee (UST) seeking a denial of discharge for fraud. Those cases could be referred to the Office of the United States Attorney (DOJ). I don't see the UST wanting to negotiate anything, mostly because the panel Trustee is the one responsible for administering (liquidating) the estate.

The UST doesn't negotiate a dismissal. You can't pay them to go away. If the case receives a criminal referral to the DOJ... ouch.

[Atlanta7]

UST'S 2004 exam lasted for 4 hours in the case. Isn't that a too long of a duration? I don't have the transcript yet. But that's way prolonged exam. Kind of unusual .

[justbroke]

A 2004 Exam is like a deposition and can be up to 6 hours. The debtor, being examined, can allow for that time to be extended, but it usually wouldn't be on the same day. I would say that a 4 hour examination is probably about average for an examination of that type. They probably went through documents and had to explain things.