Email from US Trustee pursuant to section 707!!

[Trixie007]

Our 341 isn't even scheduled until July 14th! Our attorney got an email today asking for documentation on two things pursuant to section 707 so they can "accurately complete this review".

The two things they want are:

1. Documentation on income/expenses from my new business. I showed $50 income but about a $2,500 loss after start-up on the P&L that I provided, so hopefully that is all they will need.

2. Documentation on our charitable contributions.

#2 is where I see the problem. I have statements, no problem there - the problem is that the number that ended up on Schedule I&J is the number that should have been on the means test! I don't know how I missed that! It's about $130 higher per month than what the actual number should be!! I'm still going to be negative by about $600 on schedule I/J, but I'm not sure how this will all be handled now. I think we will have to file an amended schedule I/J?

Another question - is this the section where the Trustee has 10 days from the 341 to file a presumption of abuse? And if so, does this mean if we clear these two items that we are likely to be okay from the US Trustee's standpoint? Hmmm. That would be nice!

[aces67]

I've been under the eye of the UST and as stressful as it is try to stay calm. Hard I know.

As for your business expenses he may just be wanting to look at receipts/bank statements and etc. What has your lawyer told you about this?

If your numbers are not right then yes you need to file an amended I and J.

The 10 day period for the UST to file a motion to dismiss is the 10 days after the 341.

Just try to stay calm and get everything together and have it ready for your lawyer.

[justbroke]

Yes, the Trustee files under 707(b) for abuse, bad faith, and/or totality of circumstances. The first one, presumption of abuse, has to be "noticed" (a statement made to the affect) that there is such a presumption within 10 days after the concluded 341 Meeting.

The other two, bad faith and totality of circumstances, are the "trump" card and that can be played up until discharge. Alas, those two are usually never used unless the Trustee just thinks you really shouldn't be in a Chapter 7 regardless of what the Means Test "says".

[Trixie007]

Well, I spoke to my attorney again. He asked me to write two letters of explanation, one for each question. So for #1 we are providing a) letter explaining the business start-up (I'm still waiting for the last state license I need) and a P&L - no problem. For #2 we are providing a letter stating our history of making charitable contributions along with 18 months of copies of all statements & receipts.

He said no problem, he will file the amended schedule J to reflect the proper amount. He pretty much said he thinks this will be the end of it all, and even if the US Trustee goes for "totality of circumstances" we can win that since we have such a long history of tithing.

**Just a side note** I'm so grateful for our wonderful attorney - the email from the UST was just sent today and he was right on it, and he made time to talk twice today - the second time at 6:30 pm! There are some good ones out there!