Do Trustees ever NOT request any additional info?

[Amanda]

We just filed and now I'm worrying about what the Trustee might ask for. We make UNDER the median income for a family of 4 for the means test and our lawyer said we had a 'fat' budget for a Chapter 7, so now I'm a little worried about what the Trustee might ask for. Do the Trustees ever NOT ask for anything additional?

[backtoschool]

We just filed and now I'm worrying about what the Trustee might ask for. We make UNDER the median income for a family of 4 for the means test and our lawyer said we had a 'fat' budget for a Chapter 7, so now I'm a little worried about what the Trustee might ask for. Do the Trustees ever NOT ask for anything additional?

Whether you are under the median income is not relevant to whether or not your expenses are within the guidelines that trustees in your district accept for a chapter 7. Have you looked at the IRS guidelines for a family of 4 for your area?

Trustees will question car, food, entertainment, utility, phone, clothing and housing expenses that are over the norm for your area.

Trustees will also question private school expenses, expensive hobbies, etc...

[2manybills]

We just filed and now I'm worrying about what the Trustee might ask for. We make UNDER the median income for a family of 4 for the means test and our lawyer said we had a 'fat' budget for a Chapter 7, so now I'm a little worried about what the Trustee might ask for. Do the Trustees ever NOT ask for anything additional?

The did not ask for anything additional from us. He handed us our income tax return at our 341 and that was it.

[mom2three09]

We gave all of our info to our attorney and he provided the trustee with everything he needed I guess because the trustee never asked us for anything.

[Chowder]

Nothing extra here.

[Bell30656]

This depends on how well prepared the attorney is. My attorney knew who the bankruptcy trustee was and knew what he would usually ask for. He got all the documentation from me in advance and had it in a tabbed folder. All I got to say at the 341 was that I was indeed whom I am and my social security number. Everything else went so smoothly as my lawyer handed the trustee paperwork almost as though he had ESP.

[music12]

I got asked for absolutely nothing.

[KittyisBroke]

Asked for nothing more that we originally submitted.

[RackingJ]

Nothing extra here either.

[backtoschool]

It is the "fat" budget that you mention that I am worried about. If the trustee thinks you are padding your budget, the trustee may ask for additional documentation.

[leena]

I think if you are an under median (or over median one, for that matter!) the best attorneys can tell you what your budget is "suppose to" average out to and get it within those numbers. Some expenses like rent/mortage or car payments are fixed, but there is wiggle/estimate room on nearly all else because schedule J is based on a combo of an average of what you expect to spend and an average of the previous six months of spending (that is how my attorney explained it, anyway). So, if you are a below median filer and your attorney is sitting around mumbling about your "fat" budget, that would tell me he does not know how to put your budget in line with what the trustees expect to see.

backtoschool is right, there could be an issue if your figures are out of line with expense estimates in your area.

[swampwiz]

I'm wondering. Let's say that a trustee could look at my spending over the last 4 months and determine that what I did was periodically wire money from my brokerage to my checking account, and from there paying down the line of credit, but having that line of credit steadily creep up over the month until there would be another wire from the brokerage account to the checking account, which would go to pay down the line of credit again, etc.

- rent or lodging at a hotel for $170/week

- I have receipt of paying car registration and going to a medical clinic (those were paid in cash)

- debt payments

- storage payments (for my stuff that I recovered from Katrina, and replacement items)

- gas

- car insurance & repairs

- the very occasional $20 or so at Wal-Mart

- $300 of computer equipment (I bought 2 hard drives and a wireless modem as the ones I had were busted) - I have the receipts

- some groceries ($200/mo)

- $150 in drug store and pharmacy purchases (yes I know that you can buy all sorts of things there)

- a net of about $300/mo in cash (from a savings account in which money would be deposited and withdrawn)

- a total of $250 to Paypal (it was various items for my hobby)

- a small payment of $1K or so to a credit card, followed by a steady bleed from that to pay for the items mentioned above

- a $359 charge for a season pass at a ski resort, followed by a refund

Could the trustee look at this and say that this guy has basically been living a modest lifestyle (i.e., modest enough to not be frivolous) and more importantly, not stashing cash?

[leena]

Depending on your district and your trustee, if you are a below median filer, the odds that s/he would be looking closely enough to even register all of this might be slim. In any case, it looks like a pretty modest lifestyle to me.

Really, I have NO idea what will happen at my own 341 Tuesday, but from what I have been told in my district, the trustees are way to busy with cases there figure are bona-fide abuse to be messing much with small fishes. Add that to the fact that where once 1 on 250 cases was audited by the UST on a random basis, and now due to budget cuts it is something like 1 in 2500, I think the majority of us will get our 7's just fine.

I for one and looking SO forward to getting my 341 out of the way on the 13th!

[backtoschool]

I'm wondering. Let's say that a trustee could look at my spending over the last 4 months and determine that what I did was periodically wire money from my brokerage to my checking account, and from there paying down the line of credit, but having that line of credit steadily creep up over the month until there would be another wire from the brokerage account to the checking account, which would go to pay down the line of credit again, etc.

- rent or lodging at a hotel for $170/week

- I have receipt of paying car registration and going to a medical clinic (those were paid in cash)

- debt payments

- storage payments (for my stuff that I recovered from Katrina, and replacement items)

- gas

- car insurance & repairs

- the very occasional $20 or so at Wal-Mart

- $300 of computer equipment (I bought 2 hard drives and a wireless modem as the ones I had were busted) - I have the receipts

- some groceries ($200/mo)

- $150 in drug store and pharmacy purchases (yes I know that you can buy all sorts of things there)

- a net of about $300/mo in cash (from a savings account in which money would be deposited and withdrawn)

- a total of $250 to Paypal (it was various items for my hobby)

- a small payment of $1K or so to a credit card, followed by a steady bleed from that to pay for the items mentioned above

- a $359 charge for a season pass at a ski resort, followed by a refund

Could the trustee look at this and say that this guy has basically been living a modest lifestyle (i.e., modest enough to not be frivolous) and more importantly, not stashing cash?

These expenses look in line for me. The hobby expense will be looked at if it is 250 a month. If it is 250 for all 4 months, I think you are fine.

What are your car expenses? Do you have a car payment? How much is it? How much equity do you have in your car? The trustee will be interested in your car and car expenses as well.

[leena]

Yup, the car can be important. A friend who filed had some issues because her car blubooked for 700 over the allowed amount in MN and she owned it outright. The issue was eventually resolved by her giving 700 bucks to the trustee and the remaining value was ok as an exemption.

My car is owned outright but blubooks for halk the allowed exempt value in MN.