Abuse?

[Dennis1971]

I have been reading alot on here and am worried about having trouble with our BK. How ofter does problems come up like
"UST has filed a Presumption of Abuse." What problems normally can trigger something like this. The only thing I can think they might try to get us on is we took out a signature consolidation loan last September for $30,000 and paid off other CC's with it. We have faithfully made all the payments up until now. We sure didn't fraudently spend this money, we were trying to get out of debt.
Thanks

[PaKettle]

I have been reading alot on here and am worried about having trouble with our BK. How ofter does problems come up like
"UST has filed a Presumption of Abuse." What problems normally can trigger something like this. The only thing I can think they might try to get us on is we took out a signature consolidation loan last September for $30,000 and paid off other CC's with it. We have faithfully made all the payments up until now. We sure didn't fraudently spend this money, we were trying to get out of debt.
Thanks

Presumption of abuse seems to often be triggered by the assumption that you have assets you are hiding.

If you took out a loan for $30k six months ago and have been paying it until now, you "should" be okay. In a case like that, it is kind of up to the creditor but I would think that since it was not just a cash advance, it was actually used to consolodate loans, it should not be a problem. Ask your attorney for sure, as to whether it would behoove you to wait a while longer if you have not filed yet.

In our case, we had about $17k of transfers into our checking account about 6-7 months before I wanted to file, and our attorney talked me into waiting a few more months "to make it closer to a year". Not sure if it was necessary or not but I compromised with him and we waited til it was 10-11 months out. In any case, we had no creditor objections.

[getouttadebt]

A Statement of Presumed Abuse can also be issued by the UST when you are over the median income for your state. It doesn't mean you will lose your Ch. 7 case and be pushed to Ch. 13 -- what it means is that something triggered a closer look into your case. When I got this on my case, I really freaked out.

BK is a process. I got one because I am significantly over the median income (but I also have significantly more debt than the average person too). Even if the UST files a Motion to Dismiss, you can fight it and it is your burden of proof to show otherwise.

Abuse only means abuse of the Ch. 7 BK code...it doesn't mean you abused anyone or any creditor.

Good luck,
getouttadebt