Over Median = UST involvement/fraud suspect?

[LJoutWest]

I found this over at the Bankruptcy Law Network and it fits with what our lawyer told us. Bottom line, its not over til its over. Our lawyer has had the UST come back twice (we would be his third this year) where they file for a motion to convert to a 13, and he and his clients have opposed and filed their motion and the UST on the last day of objections withdrawls their motion. Not saying it happens all the time, but the article makes it sound like it is a good move. Thoughts from those with experience?

[LJoutWest]

Sorry the link isn't working for some reason. It's Chapter 7, Sept. 26, 2009 by attorney Craig Anderson and it states:

[coolmom04]

Thank you for that. I'll be sure to ask the attorney that question!

[maddog2112]

Wow! Thats alot of responses for this queston. It`s unfortunate that you have to go BK with only 36k unsecured at 89k income a year, but if thats the case, I don`t think you`ll have much scrutiny at all. You have a very nice income, but 36k is not alot of unsecured debt compared to what the trustees are seeing everyday. The key to your successful Bk is going to be the six month window of income you file. You would probably be ok with the bonuses and all, but why risk the scrutiny? If you have to wait a few months to let them drop off your 6 month window, that may be the best way to stay under the radar since you are slightly over median income. If you truly can`t fund a 13 after allowed expenses, I don`t think you will have any problem with a 7.

[coolmom04]

Wow! Thats alot of responses for this queston. It`s unfortunate that you have to go BK with only 36k unsecured at 89k income a year, but if thats the case, I don`t think you`ll have much scrutiny at all. You have a very nice income, but 36k is not alot of unsecured debt compared to what the trustees are seeing everyday. The key to your successful Bk is going to be the six month window of income you file. You would probably be ok with the bonuses and all, but why risk the scrutiny? If you have to wait a few months to let them drop off your 6 month window, that may be the best way to stay under the radar since you are slightly over median income. If you truly can`t fund a 13 after allowed expenses, I don`t think you will have any problem with a 7.

I figured with a high income and only 36K unsecured, they'd be more likely to scrutinize b/c it "seems" that we should have more money left every month than we do.

But... we have four kids... two are in diapers.. one is in preschool (another will be in preschool in September), I am in college, husband is in college, we are paying on my student loans from the past plus out of pocket for his tuition/books and my tuition/books now. I have Celiac Disease so we all eat gluten free... husband travels 60 miles four days a week for work on top of the average monthly gas costs (haven't even crossed that line yet with the attorney and increased gas costs... I figured we're already setting off flags enough as it is).

[LJoutWest]

I have Celiac disease as well and the UST at first questioned our food expense/budget. I had a letter from my doctor confirming my illness and the requirements that go with it and we have kept our receipts and informed the rep from the UST that we could provide them. Because of my extreme sensitivity we are all gluten free in our home also. Once we had done that she said she would accept the food budget we have which is around $1200 a month due to the special needs diet. Just document it in your filing and be able to back up your costs related to the diet and you should be fine on that.

[coolmom04]

I have Celiac disease as well and the UST at first questioned our food expense/budget. I had a letter from my doctor confirming my illness and the requirements that go with it and we have kept our receipts and informed the rep from the UST that we could provide them. Because of my extreme sensitivity we are all gluten free in our home also. Once we had done that she said she would accept the food budget we have which is around $1200 a month due to the special needs diet. Just document it in your filing and be able to back up your costs related to the diet and you should be fine on that.

I remember reading one of your posts where you indicated you were on a special diet for a medical reason and I wondered if you had CD as well! Thank you for that info. I just need to get the document from my physician (in another state) so that I can prove it!