Fear of 341 Meeting

[getouttadebt]

I have read many posts on what to expect with the 341 meeting. Everyone says it usually turns out to be no big deal. I am concerned because I have more debt than most. We signed papers with our attorney on 1/22 and he e-filed on 1/28. Creditor calls stopped within a few days. We filed Ch. 7 and my attorney is confident (99%) that we will get what we want -- discharge with no asset. 341 meeting scheduled for 3/5/08.

Problem is what if my attorney is just doing what lawyers do -- that is telling you what you want to hear? I trust him and think he is being truthful.

I am surrendering the house -- approx $625k mortgage debt between 1st and HELOC loans, same Mortgage company. If forced to sell today, the house is worth $425k. We have moved into a rental already and the house is vacant. My insurance company will not insure a vacant home -- does anyone know if I should seek a company that will write a policy on a vacant home? It is in an upscale neighborhood and I don't expect any vandalism, etc. Or should I just roll the dice and leave it uninsured for the time being? I assume it's still my responsibility until ownership reverts back to the Bank? What about my quarterly payments to our Homeowners Association?...do I continue to pay that? And semi-annual property taxes are due April 10th -- do I have to pay that too even though I am not living there or making payments?

Add another $180k or so between some big lenders for credit cards/line of credit (Bank of America, Citibank, Capital One, Discover, American Express) and my total debt is over $800k that I am seeking to have discharged.

We passed the Means Test and filed Ch. 7, but with this large amount of debt, does it make it more difficult to get discharged with no asset? Will the 341 meeting last a lot longer because of the large debt amount?

Sorry for all the questions...just looking for some responses from someone who might have faced a similar situation or simply some advice to take a chill pill until the meeting...

Thanks,
getouttadebt

[lrprn]

Chances are the US trustee in your district will take a very close look at your case since the debt is so high, but as long as you can prove everything on your forms and you have an experienced bk lawyer well aware of your local court customs and practices, all should go well. Be prepared to provide extra documentation if the US trustee asks for it.

We've had a few other high income/high debt filers here go Ch 7 and make it successfully. If you've been truthful on your forms and aren't hiding assets or way over-inflating expenses, you'll be fine.

[Cali]

Wishing the OP good luck!!

[jp2861]

getouttadebt did you file in Nevada? My lawyer filed mine on 1/28 and 341 is 3/6, only one day off.

[getouttadebt]

Nope, filed in CA.

[newimges]

Add another $180k or so between some big lenders for credit cards/line of credit (Bank of America, Citibank, Capital One, Discover, American Express) and my total debt is over $800k that I am seeking to have discharged.

My husband and I had over $150 k in debt and we filed pro se and our 341 meeting lasted 5 minutes. Our trustee never even questioned our debt and it was all credit card debt. Since you are surrendering the home and that is the largest portion of your debt - I don't see why you should run into any problems as far as the amount of debt is concerned.

Good luck!

[Cali]

My husband and I had over $150 k in debt and we filed pro se and our 341 meeting lasted 5 minutes. Our trustee never even questioned our debt and it was all credit card debt. Since you are surrendering the home and that is the largest portion of your debt - I don't see why you should run into any problems as far as the amount of debt is concerned.

Good luck!

That is impressive filing pro se for that amount and being discharged, Congrats!

[One Half Full]

I can't talk about the money side, but as far as fear, you need to get that down.
Fear really whacks out your chemistry. If you have insurance, you might see your doctor, or a holistic herbalist. I personally self prescribed magnesium and started taking B vitamins and also doing stress-lowering types of things. I had major anxiety and fear, but frankly, now see that only good can come out of being without these debts. To feel that liberation inside, and to celebrate, rather than letting the doom-and-gloom overwhelm you is necessary for healing. This has been traumatic (to say the least), so you need to treat yourself for trauma.

[dp1969]

Problem is what if my attorney is just doing what lawyers do -- that is telling you what you want to hear? I trust him and think he is being truthful.

I am surrendering the house -- approx $625k mortgage debt between 1st and HELOC loans, same Mortgage company. If forced to sell today, the house is worth $425k. We have moved into a rental already and the house is vacant. My insurance company will not insure a vacant home -- does anyone know if I should seek a company that will write a policy on a vacant home? It is in an upscale neighborhood and I don't expect any vandalism, etc. Or should I just roll the dice and leave it uninsured for the time being? I assume it's still my responsibility until ownership reverts back to the Bank? What about my quarterly payments to our Homeowners Association?...do I continue to pay that? And semi-annual property taxes are due April 10th -- do I have to pay that too even though I am not living there or making payments?

Add another $180k or so between some big lenders for credit cards/line of credit (Bank of America, Citibank, Capital One, Discover, American Express) and my total debt is over $800k that I am seeking to have discharged.


Thanks,
getouttadebt

OK, your post is like reading our own life. We, like you, have $623k in a 1st, HELOC. Our home (if sold) is only going for $450-490k. We (are surrendering) and moving out this week and our insurance company (Allstate) won't insure the home. Looking around for an answer to that one.
We have $63k in cc debt and considered that a big amount. We passed the means with flying colors.

We have concerns (our 341 is next Tues.) and my attorney tells us not to be worried with feelings I have. We are walking away with only our vehicles and a damaged boat. Hoping to keep our refund to be able to pay back a few family members but for the most part...I've tried not to think about it.

The only thing that is great, this time in our lives, is the fact that we have money in the bank accumulating from not having all the crazy debt we fought so hard to pay.

BTW-We are in Cali too! Not much difference between us, right?

[jrsmom]

DP, in regard to the insurance on your house. Call an insurance broker in your area. Tell them you need a fire policy for a vacant house and want Personal Liability included. It can be done. Cost will not be cheap

[dp1969]

DP, in regard to the insurance on your house. Call an insurance broker in your area. Tell them you need a fire policy for a vacant house and want Personal Liability included. It can be done. Cost will not be cheap

I will look in to that. Thanks!

[gophermn]

[B]The only thing that is great, this time in our lives, is the fact that we have money in the bank accumulating from not having all the crazy debt we fought so hard to pay.

Ok, so let me ask this to the forum. So your attorney says to STOP paying the credit cards. Obviously this means you might have some $$ saved down the road.

I will give you my example - I am freakin out because I now have a whoppin $200 in my savings. I NEVER HAD THAT before. I was strapped every single day and I feel like I need to pay something or someone or the Trustee will look at that xtra $$ and say "Hey son, you got $$$ in your account so time to move to a CH13" UGGGGH..

My question is this. My 341 is in a few weeks and I have $200 saved. Do I go and donate it to church, pay ahead on some bills? I am not used to that and well, my luck as it goes will bite me in the you know what.

[Logan]

You're not really discharging 800K since the house will be sold. Why don't you move a bed into your house and say you're living there for insurance purposes?

Good Luck

[getouttadebt]

Thanks to everyone for their advice/comments on this thread. Talked for 40 minutes today with the Law Clerk who did all the work on gathering all of our documentation, etc and prepared our filing -- including preparing and passing the means test. She went on to tell me that the US Trustee assigned to my case is a very familiar UST to them and that "he is not as ruthless as some others they've dealt with in the past -- said he is thorough, but very fair"

Ok...so that is sounding a bit more positive now. I guess I just needed something good to hear for once. In the mail today, I received my official Form b9a -- Notice of Chapter 7 No Asset Case. I am very pleased to read the following: "The presumption of abuse does not arise."

Countdown to the 341 meeting is 20 days.

Thanks to all who posted here,
getouttadebt

[dp1969]

Ok, so let me ask this to the forum. So your attorney says to STOP paying the credit cards. Obviously this means you might have some $$ saved down the road.

I will give you my example - I am freakin out because I now have a whoppin $200 in my savings. I NEVER HAD THAT before. I was strapped every single day and I feel like I need to pay something or someone or the Trustee will look at that xtra $$ and say "Hey son, you got $$$ in your account so time to move to a CH13" UGGGGH..

My question is this. My 341 is in a few weeks and I have $200 saved. Do I go and donate it to church, pay ahead on some bills? I am not used to that and well, my luck as it goes will bite me in the you know what.

Someone tell me if I'm wrong...our attorney said "at time of filing" is what you show on in your paperwork and THAT IS THAT.

Where would the trustee think all the money goes? We have rent to pay (moving out of our home) and other utility bills. We are going to start saving money (that we never could) so we can, eventually, buy another house. Day of filing, we stated that we had $500 (which we did) and now we have well over $2k. I can know use the money to pay insurance deductibles (no has gone to the doctor this year) and buy groceries (instead of hot dogs & beans).

The trustee doesn't have access to my checking account number, does he??????