Above median case and I'm pretty sure I'm going to have negative DMI on the means test. I have no assets that wouldn't be covered by exemptions. My question is in regards to the UST and what to expect. I have nothing to hide, but what are they looking for when they do an investigation? If there is no fraud or anything can they dismiss the ch7? How long does it typically take, etc.
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Another thing to worry about: Some judges may rely on different required forms as guides in looking at the "totality of the circumstances" under 707(b)(3): Specifically Form 6, Schedules I and J. These forms also deal with income and expenses but can yield a different "disposable income" result than the means test form (Form 22A) because different things are allowed and excluded on each form. Most notably, the means test income formula (and this calculator) excludes income from social security benefits, while Schedule I does not. Whether your social security income can render you ineligible for Chapter 7 is an unsettled area of law. At least one court has ruled that, by enacting the means test as it did, Congress intended that social security income be excluded when determining chapter 7 eligibility, however, it still must be reported on Schedule I.Originally posted by coopersmydog View Post -
I have no SSI or anything, but by I&J will likely show a positive DMI. I'm hoping it will be small though.Comment
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It probably will depend on your specific district trustee/judge, you should consult with a reputable board certified bankruptcy attorney to give you the best advice.Comment
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bump one timeComment
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I have nothing to hide, but what are they looking for when they do an investigation?
They are looking for assets or sources of income you didn't disclose. Any insider transactions or, preferential treatment of one creditor over others within the lookback period.
I'd say 99% of bk's are pretty routine and run of the mill. If you have no assets and have been truthful on the forms and supplied your attorney with any requested documentation then, there will be no investigation.Comment
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Hey neighbor! Sounds just like my case. I was also above median and showed very small DMI amounts. What kept me in Ch. 7 was that the DMI amounts weren't enough to pay 10% or more in a Ch. 13. My attorney thought we were pretty safe, so we went ahead with Ch 7 knowing that we might be pressed on it. So far, so good. Tomorrow is my last day for objections and no far we've been sailing right along (probably just jinxed myself though)!!
Originally posted by coopersmydog View PostComment
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First of all, you should immediately do a search on my username. I had to deal with a US Trustee for quite a bit of my case (since the 341) who initially objected based on ""totality of the circumstances under 707(b)(3)..."
While each case is unique, and any case involving a UST is going to get a bit more complex than the usual routine, one thing my attorney told me was that it's not possible for a UST to merely dismiss a bk case simply because of "totality of the circumstances". While that may be the reason, they do indeed need to LOOK at the totality. To this end, after the UST filed an objection in my case because of said "totality", my atty called the UST and asked for specifics. He pressed the UST (in a nice way) and reminded her, that if it came before a judge, the judge would indeed look at the totality and the issues involved.
In other words, just because you are a high income earner and above median (I was WAY over), there still has to be a basis even with respect to the generic "totality". Make sense?
My attorney was instrumental in dealing with the UST and ultimately helping me get the discharge. Feel free to PM me if you want his name (he practices in NY and NJ).
Hope this helps.Comment
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