Rebuttal By UST to discharge case

[Walangatik]

Hey All,

My best friend filed a chapter 7. At the 341 hearing the UST showed up with alot of questions. With that, the case was continued for additional evidence. 2 months later, my friend met again with the UST and the conversation was recorded and additional evidence was requested again. 2 days laters, my friend checked the pacer and the chapter 7 trustee wrote of report of no distribution and so she had thought that all was moving in her favor until 2 weeks later, a notice from the courts came in stating that the UST is seeking an extension to file a complaint to dismiss case for 707b and would like to object to the chapter 7 trustees motion to discharge her case.

Worse case, If her case gets dismissed, can she refile a chapter 7? or does she have to wait many years to file again?

Has anyone had this happen before. Any comments or suggestions to the matter will be greatly appreciated.

[Meatstick]

Need more info as to why the UST got involved and what he is looking at ??

[BnkrptcyLwyr]

This is a pretty clear indication that the UST believes that your client should not be in a Chapter 7, but they have enough money to be in a Chapter 13.

[Walangatik]

The UST states that my friend has a DMI of 1400 available. Her income is 150000 via employment and self employment and has secured debt (properties) and they are questioning her business expenses. If her case is dismissed, can she refile a new chapter 7 petition right away, because she is considering quitting one of her jobs too offset her income?

Thanks everyone.

[justbroke]

The UST states that my friend has a DMI of 1400 available. Her income is 150000 via employment and self employment and has secured debt (properties) and they are questioning her business expenses. If her case is dismissed, can she refile a new chapter 7 petition right away, because she is considering quitting one of her jobs too offset her income?

That's just abuse right there. If they find out she quit just to be in a Chapter 7... they might just file another 11 USC 707(b) abuse motion to dismiss again.

Also, if the case is dismissed, it will probably have the 180 period where she won't be able to file another case. This is to prevent serial filers from abusing the power of the automatic stay, to stave off foreclosures.

Sorry, your friend really needs to be talking to an attorney. If she has one, the attorney should be making sure the bar date hasn't passed yet on a dischargeability complaint while the attorney fights the UST's motion to extend the period.

[HHM]

This begs the question, why did she even attempt a 7 in the first place, what was her argument that she even qualified if she was making $150,000 per year?

[blockhead]

This begs the question, why did she even attempt a 7 in the first place, what was her argument that she even qualified if she was making $150,000 per year?

[links removed]

[HHM]

Not sure what the point of those links were, but they were not helpful.

[Mensa1]

Not sure what the point of those links were, but they were not helpful.

While I didn't have the oppty to view the links since they had already been removed, what seems self explanatory to the question is the screen name of the poster of the links; blockhead.

[Dst1]

While I didn't have the oppty to view the links since they had already been removed, what seems self explanatory to the question is the screen name of the poster of the links; blockhead.

So says the member of MENSA. Obviously, BK is not just for blockheads.

[TeacherMomma]

Hey All,

Worse case, If her case gets dismissed, can she refile a chapter 7? or does she have to wait many years to file again?

Has anyone had this happen before. Any comments or suggestions to the matter will be greatly appreciated.

Mine was dismissed, not able to use student loans as an expense so it looked like we made too much money. It was dismissed with no bar to refile, so I can re file anytime. But it sounds like there may be more with your friend. The UST was involved in mine too......