Is the UST always involved in large debt cases?

[howtoplan]

I will be filing chapter 7 due to a failing S-corp. The majority of the debt will be non consumer 1 million, 1.1million in secured personal and about 500K unsecured and oh just to complicate things more I own a c-corp that is a key man operation and it provides for my living, both myself and my husband work here. What a mess huh?

[StartingOver08]

Make sure you get a good BK attorney.

Remember to interview several. Make sure they have experience with your specific type of BK. The initial interviews are usually free. Have a detailed list of questions for the attorney. Don't hire your first attorney without interviewing the others first. There are quite a few stories on this board about how the attorney changed right after he was paid, and since the attorney gets paid up front, that can be a real issue.

As you to specific situation, if you are more than 50% non-consumer debt you don't have to take the means test....and you are very close now.

You probably will have UST involvement to try to convert you to a Ch 13. Recognize that the more documentation you have to support your position, the better it is for you to stay in a Ch 7. You will need to have documentation for a min of 2 yrs on the bank statements, 3 yrs on the cc statements, 10 yrs on real estate...you will get a list from your attorney. If you know this going in, you can prepare accordingly.

The S-corp is yours alone? If so, it is considered an asset of yours. If you have A/R due to you as of the filing date, the Trustee will want the receiveables. Many people choose to liquidate the S-Corp assets prior to filing. There are pro's and con's to that approach, so discuss with your attorney in detail. Look at this link: http://www.moranlaw.net/struggling.htm

I am not sure of the ramifications of a C-corp that I assume from your post will be on-going during the BK.