Do trustees ask you how you got in this much debt?

[BKFLA]

We just totalled up all of our debt that we have including late charges and fees for not paying in the last four months and it was about 75k give or take (not including our home that's being surrendered)...it was just a butterfly effect from my being laid off months ago in our prior state and it all went to heck in a handbasket from there. Is that a necessary question that they ask you?

Thanks!

[bmcmull]

No, we personally took down about $250k, not a peep from the trustee. I am in a ch13 and my trustee makes 10% every month on my debt. I am paying back 33% to unsecured and the trustee gets 10% as well.

[dmudduck442]

We filed in Fl last April and the trustee did ask us that question. It was no big deal, I explained what happened and nothing further was ever said about it.

[sharksfan]

Whats a good answer if nothing catistrophic has occured? My unsecured debt was racked up while attempting to stay afloat.

[HHM]

They may ask the question, but a general or vague answer is normally sufficient. I have yet to see or hear of a BK trustee push the question. After all, as far as the BK trustee is concerned, it really does not matter how you got into debt (the US trustee "might" care, but only in so far as whether you are intending to commit fraud).

[woohoogirl]

Four simple little words...poor money management skills.
That should shut anybody up.

[BKFLA]

Yeah, I would say poor money management played a part in our little mess. Thanks guys!

[CindyLou]

You can also say that you expected to increase your income more than you actually did...don't most of us??

[kl030505]

I would just say unemployment.

[epiphany]

Four simple little words...poor money management skills.
That should shut anybody up.

I'm glad this question was asked and I like your answer, woohoogirl. I intend to use it if need be.

EP

[pa308]

poor money management skills. That sounds about right. Cant imagine a followup question to thaat.

[Penny Less]

You can also say that you expected to increase your income more than you actually did...don't most of us??

I like this reponse the best...this is what I'm going to say.

[PaKettle]

No, they don't usually ask.
My attorney said that if they do ask, to say, "Well, it is mostly old debt [assuming it is] and I kept trying to pay it off but I finally realized I would never be able to."
He emphasized for me to say that it was old debt, which most of it was (not all of it).

[BKFLA]

In our case - it's all of the above. We did expect an increase, I was laid off when the clinic I worked at was sold to a hospital and it was poor money management!