how does UST get involved?

[mysticspirit25]

I have been reading several posts by various people that say that the UST has gotten involved in their cases...how does this happen. I filed CH7 in 01, and my trustee was just another attorney (in MD), and my MIL just filed CH7 in NC, and her trustee is a debtor rights litigation atty. So when does the UST get involved, does something flag his or her involvement?

[Help!]

The regional UST's office reviews above median petitions. The higher the income and the higher the debt, the more likely it is that the UST will take a closer look. After reviewing the means test and schedules I & J, they will usually ask for more documentation (and this can be quite extensive) if they feel there's the potential to successfully challenge the statement that the presumption of abuse does not arise. It is also possible to hear from the UST for the first time when they file a statement of presumed abuse. They tend to appear at the 341 hearing with questions, and the attorneys for the UST tend to question people pretty aggressively.

Their involvement is very rarely related to fraud and usually the goal is to convert a Ch. 7 to a Ch. 13 or, worse, dismiss a case. They definitely have the upper hand and in most cases the final say as to whether a Ch. 7 case makes it to discharge (unless the debtor disagrees with their final decision and goes into litigation represented by their attorney... costly).

[B65]

I think NC is exempt

from the UST, but since 2005 the UST overseas all cases, he can decide to get involved if you earn over the median income, or a high income with large consumer debts, also if he suspects fraud in any way...
i am sure someone else will chime in, but that is how I have heard it works.

B

[mysticspirit25]

yeah, NC and AL are exempt from the UST to my knowledge, but they have their own 'private oversight' committee from what I read. I was just curious, my MIL's case is open and shut, her deadbeat soon to be ex took all her money and she supported him through the years with her good credit and stopped charging over a year ago and just recently stopped paying, as soon as the first call came in, she filed CH7. She was over a year without any charges, 80k plus in unsecured, 0 income.