Bankruptcy Court Letter

[ELGUPASO]

I just received a letter from the bankruptcy court. It says at the top "CLERK'S NOTICE OF PRESUMED ABUSED UNDER 11 U.S.C. 707(B)(2).

It states the following:

Insufficient information was filed with the petition in the above-captioned case to permit the clerk to make a determination concerning the presumption of abuse at the time of filing. Additional information subsequently filed by the debtor indicates that a presumption of abuse has arisen under 11 U.S.C. 707(b)(2).


What does this mean? What happens next or needs to be done?

[frogger]

Did you file pro-se or with a lawyer?

[justbroke]

It could mean so many things. Perhaps you didn't file the Means Test (Form B22A) when you filed the petition. When you file an emergency petition, you don't have to file all the schedules and forms. The question asked above is pertinent... did you file pro se?

[ELGUPASO]

Did you file pro-se or with a lawyer?

With a Lawyer.. I already left him a message about it. I take it he got the letter as well.

[justbroke]

Did he file this as an emergency petition? Did he indicate to you that the presumption of abuse arises? (You can look at YOUR copy of the submitted petition and look for Official Form 22A. That's known as the Means Test. Look in the upper right hand corner and tell us which box is checked.)

[ELGUPASO]

Did he file this as an emergency petition? Did he indicate to you that the presumption of abuse arises? (You can look at YOUR copy of the submitted petition and look for Official Form 22A. That's known as the Means Test. Look in the upper right hand corner and tell us which box is checked.)

It was not a emergency petition. He didn't indicate anything to me or that something would be a problem. The box checked is THE PRESUMPTION DOES NOT ARISE.

The thing that did happen was the he submitted a Amended petition of Schedule I, J and Form 22A, because the first time around he put that I owed a loan to a family member which was not going to fly with the Trustee. So he submitted a second one stating of my wife and myself getting Health Insurance expense soon since we don't have any to offset the amount he put for the personal loan.

[justbroke]

Ah, there's the problem, the shuffling of the expense. Well, hopefully you and he are up for the United States Trustee's (USTs) interest in your case. The presumption of abuse means that you have either more than $109.58 in disposable monthly income left over or more than $182.50 (there are two "means" tests). You can overcome this presumption but there must be a good reason.

Next the UST will probably contact your attorney and then they may need the forms updated again. Then the UST will make a determination on whether they are going to "complain" (file a motion) about the abuse and may seek to dismiss the case.

[ELGUPASO]

So I take it I am pretty much screwed at this point baring a miracle?