Presumption of abuse under 11 U.S.C 707 (b)

[bizrock]

We got our papers in the mail today with the 341 information and it has presumption of abuse on it. Anyone else received this before? What did they request as far as paper work. I wanted to call the clerks office but its close today. any info would be great to help me get started thanks for the input

[MSbklawyer]

It means your income on the means test is above the median for your household size. It doesn't mean that anybody will be requesting any paperwork. It simply means that your 6 month average income is above the median and that, therefore, Chapter 7 is presumptively 'abusive'. As a result, the court, the trustee, or any party in interest can file a motion to have your Chapter 7 case dismissed. See: 11 USC 707

http://www.law.cornell.edu/uscode/11/usc_sec_11_00000707----000-.html

This is one of the central features of the BAPCPA reform act: to force above-median debtors into Chapter 13.

[bizrock]

Utah (1 Person) $50,388 (2 People) $56,729 (3 People) $61,685 (4 People)$69,741

Me and my wife work and we have a son that makes 3 people our yearly income is $46724.90 Gross we are well below the 60k mark. any other ideas?

[MSbklawyer]

any other ideas?

When you completed the means test, did you check the box up at the very top of the form that says: "The Presumption Does Not Arise"?

[bizrock]

my attorney did all the paper work so i sure hope he did.

[despritfreya]

How about a simple mistake. They do happen. Check with your attny on Monday. Don't panic until there is a reason to.

[bizrock]

Just checked my digital copies and he did check the box that it does not arise. O boy i'm really concerned I have no clue what it could be

[bizrock]

I looked online and it says that these are the reason why it can be dismissed.

unreasonable delay by the debtor that is prejudicial to creditors (Anyone know what this really means?)

nonpayment of any required fees and charges (all fees are paid)

debts are primarily consumer debts if the granting of relief would be a ''substantial abuse'' (we did have about 56k in unsecured debt its over 1.5 years old though)

any help would be great

[MSbklawyer]

I looked online and it says that these are the reason why it can be dismissed.

unreasonable delay by the debtor that is prejudicial to creditors (Anyone know what this really means?)

nonpayment of any required fees and charges (all fees are paid)

debts are primarily consumer debts if the granting of relief would be a ''substantial abuse'' (we did have about 56k in unsecured debt its over 1.5 years old though)

any help would be great

I agree with despritfreya, bizrock. Sounds like somebody has their wires crossed. Check with your lawyer on Monday.

[bizrock]

Anyone out their that can give me some more insight, been search the internet all night i still don't understand why this was on my papers. any other thoughts?

[brokejoker]

Sounds like there may be a mistake on your paperwork somewhere. Did you file your BK counseling certificates and everything? I would call first thing Monday and check with your lawyer.

[bizrock]

yeah we had our certificates and everything. so it sounds like this just mean their is a error somewhere in the paper work. This can be fixed right we are not just out of luck i hope.

[justbroke]

This definitely reads like a clerical error by the Clerk's Office. Just check in with your attorney on Monday.

[bizrock]

I'm counting down the hours to when i can call and find out whats going on I will update it so people can learn from this mistake.

Thanks for all the help and answers.

[MSbklawyer]

I'm counting down the hours to when i can call and find out whats going on I will update it so people can learn from this mistake.

Thanks for all the help and answers.

Do like my clients do. Start calling your lawyer now and leave 73 virtually idential voice mails each two minutes apart, saying "!!OMG!! , !OMG! I got this letter that I can't understand and I need to talk to you right away!!!! OMG!! OMG!!" So when he gets to work Monday morning his answering machine is smoking and making funny noises.