US Trustee Question

[okiebk09]

Does the US Trustee on your case review your case automatically if you are over the median but pass the means? Do they review every case no matter what?

[deadbroke99]

I was wondering this too as I am going to file ch 7 and I am over median. My lawyer only said that we may have some questions that we will probally have to answer. I took this to mean that we will be scruitnized.

[yuckhatethis]

We're over the median, pass means, no asset and didn't have any UST involvement. I think being over the median makes it a good possibility, but doesn't mean it's a sure bet the UST will get involved. We were prepared for it, but luckily made it through without any problems.

]QUOTE=deadbroke99;246880]I was wondering this too as I am going to file ch 7 and I am over median. My lawyer only said that we may have some questions that we will probally have to answer. I took this to mean that we will be scruitnized.[/QUOTE]

[deadbroke99]

ok that's good to know thanks! We are over median also no assets and my lawyer said the means test is borderline.

[laurannm]

We were over the median as well and did not have any UST involvement. I suppose it's possible they took a look at our case behind the scenes and did not see any red flags, and thus moved on.

My guess is that a computer program reads through all of the filings and is configured to raise flags based on certain critieria (level of debt, a certain level over the median, etc.)

[Duke89]

I think it depends on the district you file in. In Houston the UST tends to scrutinize most of the above median income filers as it is usually easier to force that group into a CH 13. If you can prove the numbers on your filing with solid evidence then you should be fine. However, if you've put something down like you're going to contribute 15% of your income to charity (which is allowed), but your prior year's tax returns don't show any historical evidence of you ever contributing at that level then you're probably going to have an uphill battle. If you can prove it then you'll most likely be OK.

[TEW]

Does the US Trustee on your case review your case automatically if you are over the median but pass the means? Do they review every case no matter what?

[HHM]

Any case that is over the median will be "looked at" by someone in the UST's office. But whether they do anything about it, there is some wiggle room there.

Being over medium is not the big problem it’s how much disposable income you have. You can be 100K over medium but have -2500 in disposable incomes. And you will not have a problem. You can make 20K and have +167 disposable income and have a problem.

That is a bit of an over-simplification, or I should say, sets the wrong sort of expectation. If a debtor is $100K over the median, but negative DMI, and that case stays a chapter 7, that case is a non-consumer 7. It would be near impossible for a regular consumer case to be that negative because the trustee would be objecting to expenses left and right.

[jennordhavn]

I was slightly over median but still passed the means test and had negative disposable income and didn't have any US Trustee involvement.

[deadbroke99]

I am about 20,000 over median for a family of four. I wonder if UST will be looking at my case very hard?

[WayTooMuchDebt]

We were over the median and high debt filers. We were borderline on the means but did pass.

The UST requested additional info prior to our 341 (basic stuff bank statements, credit reports (showed 24 months of balances)). They were at our 341. We were asked a bunch of questions about some deposits/withdrawals which I answered honestly (we had work done to the house from a 401 k loan) and provided support as we knew it would be questioned but was legit.

Even though we did have additional info requested and they were at our meeting we found out a couple weeks later they were done and we were discharged on time.

So even if they do take a look it could just be to get more info!