Answering the trustees questions? Help?

[whirlwind123]

Hi.,
Thank goodness for this board, you all have been so helpful., I am meeting with my new attorney tuesday. But I am still so upset from the first one., one thing he says that keeps staying in my mind is: " the trustee will want to know exactly how you spent 90,000 in credit card debt., and he will want answers and will question you till he gets them" I have been running it over in my mind., How have any of you answered? I thought I would tell the truth., that I spent them for things I needed., I relocated twice had lots of expenses , was out of work a few months from relocating., then the interest rates went up payment amounts went up and I could no longer pay them., I was using them the last two years for food., clothing etc., etc.,....Do you think that is a problem with me telling them that., it is the truth. I am in Ohio , maybe the trustee's in ohio are more rough., I don't know ,,,HELP

[dspii]

Hi.,
I am in Ohio , maybe the trustee's in ohio are more rough., I don't know ,,,HELP

From all my lurking, researching and generally trying to decide the same myself.......you should be OK, unless you spent on the eve of BK, bought luxery items or have lots of non-exempt assets. I am in NW Ohio and my attorney has (many times) assured me that everything will be OK...if your honest and have not attempted to defraud or "abuse" the system.

I was current on all my CC's, house and car payments the day I filed. I had used my cards up to the time I filed, but it was for living expenses, doctors, prescriptions and the such. No vacations, TV's or luxery items. The lawyer said, no problem should be encountered. Because, that was the the day I decided b/k was my only answer, we used credit to provide daily living expenses.

I hope this helps....shop around for another attorney...interview them about your case, the law is the law and each one should give you about the same reply...with a few twists. Right now Ohio b/k filings are 35% higher than last year meaning that the courts are flooded, my 341 is scheduled 60 days after I filed. If your an easy case, the odds are in your favor that you will sail right through.

[Amy26]

Each district is different... so its hard to know if my experience will be your experience... but I never had to justify any of my charges or what I spent money on. Between my house, credit cards and student loans I think I had about 450,000 in debts. Almost 100,000 of that is student loans so that won't be going away but I had substantial amount of debt and no questions or issues.

However many people on the board have had to justify, provide documents, answer questions... it just depends on the situation and what district you're in. I think you'll be ok. I asked my lawyer about charging clothes, food, supplies on my credit cards even just a few months before I filed... and I asked if that would be a problem... he said doing exactly that is what got me into this mess to begin with. Of course they are going to expect that I charged those things. I also got laid off and relocated and charged a bunch of stuff last year.

Have a drink and relax a bit !

[AngelinaCatHub]

So far as I see it, this is the first time this question has been brought up. We were never asked about CC spending habits. At the 341 it was basic questions of SS #, read the papers, any changes, then good luck you may go. That was about it. 'Hub

[backtoschool]

At my 341, the only people who were asked about credit card charges were one couple that had bought a lot of equipment for their businesss (their current OPEN business) with a personal card right before filing.

I think that couple is headed for an adversary proceeding.

But if you charged normal expenses on the card, you will not be asked about it by the trustee. Every case he sees every day used credit cards for normal expenses.

[Oblib2345]

We had a $20000 personal loan and around $50000-$60000 other unsecured debt. The trustee didn't even bat an eye about it. They asked some basic questions (which you can find on another thread in this forum) and then confirmed that we were giving up the car. After that, they simply asked my wife if she agreed with everything I said and let us go. We are in Northern Indiana. I wouldn't worry about it.

[liz417]

I had $72k in credit card debt accumulated within one year. My 1st attorney was worried about being asked how this happened (it's a long story), so he decided it would be best for me to do a ch 13 for 5 years. I ended up finding another attorney who filed a ch 7 for me and nothing was asked at my 341. Again, each district is different, but I would definately inteview a few more attorneys (I ended up consulting 6 attorneys after my 1st one quit)!

Good Luck!

[Chowder]

.. the trustee will want to know exactly how you spent 90,000 in credit card debt.:

Over what time frame, and more importantly, how long ago this debt was accumulated

If it was racked up quickly a few months ago on anything but medical, it could be a problem.

Time is the BKer's best friend though. Putting of filing until questionable charges are well out of look back have saved many of us.

[adviceplease]

Does the trustee look over the credit card purchases? I am just wondering because I bought a lot of holiday gifts for my extended family because I had no money during the holidays (around $50+ each) and I do not have all of the belongings to list because they were gifts. We also purchased guitar cases (on credit cards) for a couple of guitars hubby owned but then had to sell the guitars and their cases on craigslist and I have no idea what the persons full name was.

[67caprice427]

I had 50k of cc debt and it didn't faze the trustee. I was also worried, so I actually spent the day down at the courthouse observing the procedures and the questions being asked. The only time anyone had anything other than name, address, ss #, truthfullness on all forms, good luck and goodbye, was one poor soul who was less than honest about ownership of his vehicles, and yes he got buried by representatives from the justice dept. who beat him like a drum.