Over Median and Ch 7 ??

[drowningNIL]

Hi, just wondering and maybe this is a dumb question, but I am new at this and learning, but it seems that if you are over median income (we are) lots of the feedback I have read here mentions that is cause for the US Trustee to be involved & really scouring over us and in our business. Why? What will he be looking for or suspecting?

We had a large loss in income since 2008. It is clear on the tax returns and we cannot support our debts as we once could. Some just had to take the hit. We have not used CCs since spring 2009.

We have our monthly expenses verified and provable. What will they think we are up to? I am so nervous about this whole thing, and the thought that I inadvertently did something that I should not have just out of ignorance also has me tense.

Thanks.

[olivies]

Well, the US Trustee was at our 341 last week. She had questions about certain things and wanted more info on other things. I was flustered, our attorney wasn't. He said her job is to make sure people who can afford to pay do.

[drowningNIL]

i have such a stomach ache over this. and a vague sense of guilt. not sure if it's from the whole BK thing or feeling uneasy that maybe i did do something wrong and they'll find it and it will be over for me. and no more hope. it's a yucky feeling being scrutinized and not knowing what will happen


Did your lawyer answer for you or do you speak to the trustee? I am really scared.


thanks

[minan]

i have such a stomach ache over this. and a vague sense of guilt. not sure if it's from the whole BK thing or feeling uneasy that maybe i did do something wrong and they'll find it and it will be over for me. and no more hope. it's a yucky feeling being scrutinized and not knowing what will happen


Did your lawyer answer for you or do you speak to the trustee? I am really scared.


thanks

I know what you mean. I just filed on Friday and already found something I forgot to include in my statement of affairs. Now I'm totally paranoid that I'll get in trouble. I realize that it's only been 2 day since I filed, however I was thinking if I feel this way now, I better figure out a way to deal with this type of stress as I've got quite a ways to go before things are final in my case.

it's hard I know, however know you are not alone. There are many of us in the same boat on this site. That is why this site is great.

[drowningNIL]

Thanks minan. this forum IS great. I am obsessed. I think i keep wanting to hear somebody say it will be ok don't worry.

I hear you on the stress and have been thinking myself that i better just get used to it.

good luck. i hope all goes well for you.

[minan]

Good Luck to you also. I'm obsessed with this site also. I've already gotten great questions for my lawyer re: my plan so there's definitely folks on here who have been through what we're going through.

Keep reading and asking questions and getting support. I know I'm going to be on here all the time now.

[olivies]

We did the answering. There were a couple times she looked to our attorney for an answer, regarding a corrected form to be filed or something.

[CreditCretin]

We did the answering. There were a couple times she looked to our attorney for an answer, regarding a corrected form to be filed or something.

If you don't mind me asking, what kind of questions or info did the trustee want? We have our 341 in the next week, and I think that the UST may be at our meeting as well. Just wondering what kind of things that they ask.

Edited - Olivies, I found your other post on what happened at your 341, so no need to answer again.. I am a little surprised that the UST was so rude, especially with that one comment. Now I am a little more nervous about ours, and can't wait for it to be over.

[researchnerd]

We are in a similar situation - well over median, but we've taken a 50% income cut and can no longer pay the bills. We've adjusted as best we can (walked away from our house & renting for less) but the CC debt still puts us under every month. Our income & expenses are easily provable, as is our negative disposable income, so I'm hoping we can make it fly, but it may take some negotiation between the attorney and the trustee.

I can relate to your vague sense of guilt...like I should have somehow known DH was going to lose his job and not find another one for 2+ years, and that our home would end up being $60k underwater. But realistically, there's no way we could have known ahead of time. All I can say is, you know in your heart that you are not "up to" anything, you are simply seeking relief from a bad situation. Bankruptcy laws are in place to legally provide this relief to people who need it. Just because you aren't living on the street doesn't mean you aren't in need. Keep this knowledge in mind, say it out loud if you have to.

It will be OK. Don't worry. Seriously -- there's a difference between being prepared and worrying incessantly. Worry doesn't help you to be better prepared, so try to let it go for now. Just do your best at the 341, and if there are objections, your attorney can help you work around them.

The advice given me by the attorney at my Ch13 341 was this: When the Trustee questions you, answer honestly (you're under oath) but simply - don't offer more info than they need. Usually they are looking for a simple yes or no answer.

[olivies]

I like researchnerd's advice: Answer honestly and simply.

For example- one of the questions the UST had for me was "Why do you have childcare expenses if you don't work outside of the home?" I just chuckled and told her I have six kids, we moved away from all our family up North and I can't feasibly take all the kids with me all the time to everything- there are times I have to rely on babysitters, summer camps, etc. I did not get specific about who stays with whom, or for how much or how often, etc. Just answered as simply as I could.

It is nerve wracking. And I understand the guilt feeling. I wish I didn't have to do it this way, but on the other hand if I didn't have a credit card jacking up interest to 35.99% and another closing our account and setting the interest rate at 29.99% 2+ years ago, without us ever being late or over limit, because the economy was tanking and everyone was panicking, I wouldn't be in this situation. Our debts WERE manageable. Until they became unmanageable. We tried negotiating, and settling, but they wanted nothing less than 40%- which would only work if all would agree. Some were holding out for the whole kit and caboodle and wouldn't negotiate at all. We aren't walking away debt free- we still have IRS debt and student loan debt. So I don't feel like I'm "getting away with something" or anything like that- we're just looking to be able to catch our breath!

Hang in there- it's a bumpy ride, but with a good lawyer you'll come out ok in the end.

[drowningNIL]

THANK YOU SO MUCH for the replies. I really really greatly appreciate it. I feel understood. This BK thing has been very isolating to me. I have not told any of my friends due to embarrassment and afraid of being judged.

Thank you for sharing your experiences. It means a lot to me. I am really sorry for what happened to everybody. Scary how fast the rug can be pulled out from under you.

[justbroke]

If you have any specific questions, I can help as well. I am an over-the-median filer and started as a Chapter 13. I converted to Chapter 7 and have since received a discharge. I spent almost 2 years in my Chapter 13.

[drowningNIL]

thank you everybody.

i just read olivies 341 experience and feel awful.

i am worried too because i don't work outside the home. i have been home with kids for 20 years. i also have a disabled child. He can be alone but without getting too deep into it there are circumstances where it is best that he is not. i just don't want to be degraded at the 341 meeting for my choices.

i have a lot of crummy feelings about this situation i'm in. it does help to know i am not alone. thanks for the replies.

[justbroke]

i just read olivies 341 experience and feel awful.

Don't read about one 341 meeting and think that will happen to you. It is absolutely true that 95% of 341 Meetings go without any issues and just the standard questions.

The fact that you are taking care of a disabled child will be in your favor in many areas! You can claim special circumstances, have higher than normal expenses (for your income level), and be able to rebut most U.S. Trustee (UST) objections.

i have a lot of crummy feelings about this situation i'm in. it does help to know i am not alone. thanks for the replies.

You are not alone! We are here to help you through this. While I can't promise you an "easy" 341 Meeting, I can tell you that most of them are really not an issue. Just be honest on your schedules, and provide documentation up front on your child's disabilities and I don't think you'll have issues.

Best wishes.