341 Meeting With "Aggressive" Trustee

[facingfuture]

Well, I've been fairly calm through the bankruptcy process - had difficulty getting started with the initial paperwork, but when I finally did it it went smoothly. I had my 341 on 1/21/10 and the trustee became incredibly cranky with the case right before mine because he was evasive and unprepared. So, when it was my turn she asked the standard questions but then looked at the house that is still in my name (deed and mortgage) and asked me if I had any equity interest in it. I told her that I received my equity interest at the time of my divorce three years ago and my ex-husband resides in the house, has made all the payments and is supposed to refinance by June 2010 - she immediately requested a copy of my divorce decree as well as a copy of my 2009 tax filings (I will definitely not be getting a refund as I have negative equity in my closed business).

So, our divorce was done pro se and I'm worried that the paperwork isn't crystal clear so she might have more questions. The divorce decree was sent to her by my attorney on the Monday after the 341 and I didn't hear anything more about it. My attorney said the trustee has the next 60 days to object to anything - he really doesn't know what she'll do - but she is "one of the more aggressive trustees". So, now I'm anxious and I know that absolutely no one can tell me what is going to happen - so I'm just going to have to deal with my anxiety. I really hope she decides something (i.e., to just declare me a no asset case) before day 59 so I don't have to fret the whole time! Even though doing my taxes (because of the closed business) makes me want to scream - I will force myself to do those in the next few days so that won't hold up her decision.

Sorry this is so long - I don't really have a question - I just need some little support because I'm going through this bankruptcy completely alone (except for my attorney - but it isn't his bankruptcy!) Also, because I closed my business I'm searching for a job - which is painful for someone who worked for the same organization for 20 years before owning their own business for 2 years - I don't have a lot of experience job searching and my confidance is tattered due to all the changes in my life in the recent past. Anyway, I appreciate the forum because just knowing that others are also surviving this process gives me hope.

[Flamingo]

Divorce, filing BK, etc. are all life events and life events just shoot us into a huge emotional orbit which creates all sorts of anxiety ridden thoughts and questions. As long as you provided the necessary paperwork, gave a true, honest explanation and are represented by good counsel and has thoroughly gone over your financial and background situation, you probably have nothing to worry about. The trustee is looking for any indication of fraud and will review documents provided. It seems the issue here is the house and mortgage still being in your name and your ex living there and you filing BK before the house will be refinanced by him and put in his name. Of course that would raise a red flag for any trustee. It raises an issue as to your "no asset" case because in reality there is still an asset without any paperwork indicating it is not...having an attorney going through your divorce would have provided some legal protection here with property settlement documentation. You may have a problem since you can't bank filing no asset now with something that has not yet taken place as to the house. Listening to your attorney now is probably the best you can do to see how this all pans out.

Please note that what happened regarding the case before yours has nothing to do with how yours turned out. It's the lack of documentation in your situation and possibility of fraud that hurt you.

[facingfuture]

My divorce decree does have an attached Exhibit A explaining that I have no further equity interest unless he defaults on the loan and I have to become responsible for it. It also states that the deadline for him to refinance is June 2010 as that would be when the last minor child graduated from high school. I also have documentation of having received my share of the equity at the time of the divorce but that hasn't been requested (yet). I understand that the trustee is looking for legitimate assets and possible fraud - but there is no fraud and even though I'm still on the mortgage and deed for the house I'm not entitled to any equity since the divorce. My situation is a classic example of why people should absolutely sever all financial ties at the time of divorce - but when children living in a house (their HOME) are involved and no one ever expects bankruptcy, it's just too tempting to try to "work things out", be "reasonable" and trust. I wish he had been able to refinance before this - but he has not been financially responsible, either, and didn't make this a priority. I'm just ready to be done with all the legal entanglements so I can live more simply. I've discovered I'm not cut out psychologically for a lot of risk and complications.

[ToughTimes]

facingfuture,

I know we've had anxiety over every single piece of paper that's come our way since filing. Even those of very little, if any, significance.

Waiting for things to be resolved is surely the hardest part.

It seems to me the concern we have that our trustees will accuse us of fraud we know we have not committed is a recurring theme here. I am starting to wonder if it is somehow tied up with our overall feelings about having got to where we needed to file BK in the first place. Maybe, maybe not. In any case, you're not the only one to have had these feelings and they will pass once the property issue is settled.

From what you've posted, it sounds like you've provided the trustee with documentation that clearly states that you don't have an equity interest in the property at this time. Your 2009 taxes will also show that you aren't deducting interest on the mortgage in question.

Many of us, by the time we file, have used up the better part of our ability to psychologically handle risk and complications.

Not much for you to do right now except allow time to pass and wait for resolution, unfortunately. That's hard for people of action, and your history sounds like you may be a person of action.

I'm sorry you're anxious. I hope you don't have to wait long to have resolution.

[facingfuture]

Thank you, ToughTimes - you're words really help me. I think what you said is certainly true for me - the feeling of "guilt" around having gotten to the point of bankruptcy has made me hypersensitive about honesty. I have been guilty of some pretty paranoid thinking (everytime I see a sheriff or police officer at my work or in my neighborhood I've been sure they're coming for me!) The irony is that I closed my business, in part, because it wasn't an honest enough environment for me - it's complicated, but some of my business associates wanted to take "marketing" to a whole other level - and it was a business that depended ALOT on the appearance of success at any cost. It just wasn't me. I'm fundamentally an honest person and I feel a lot of psychological pain in situations that I don't feel genuine in - so being "scrutinized" by a bankruptcy has created a lot of anxiety for me because I can't handle being thought of as dishonest or fraudulent. But I'm working on just knowing myself and being confidant that the truth will prevail, even if it takes answering a lot of questions and providing a lot of documents! Thank you, again, so much!