Trustee asks for 2nd Extention to Seek Denial of Discharge

[montana59451]

We filed pro se Ch 7 non-consumer. 1st 341 meeting was 4/6 and continued to 4/19. On May 19 TT declares us an asset case (for small tax return) and then on 5/21 asks for Enlargement of time to seek Denial of Discharge under 11 USC 727. She was granted her extension which expired on 9/2

Today, 9/2 @ 2:30 pm she files another request to enlargement of time to seek denial.

In the 106 days under the first extension, she did not request ANYTHING from us. Now she writes EXACTLY the same motion (looks like whe just changed the dates) and wants another 90 days (till 12/1).

I want to write an objection to this motion but I need some type of case references so the judge can just throw this out.

If she did nothing in the first 106 days, what is she going to do for the next 90 days?

Help please! I want to get this objection in before the judge signs the order. The last time the order was signed and filed within 20 minutes of her motion.

This is a holiday weekend coming up and I am hoping the judge is gone on vacation already!

[montana59451]

PS: It is the Panel Trustee asking for this not the UST. The UST has never made a peep

[sworks2]

A 727 objection is for fraud and not easy to prove.
Unless you have done something very questionable I wouldn't worry to much.

[montana59451]

We haven't done anything wrong. But this is just ridiculous.

[despritfreya]

Section 727 denial of Discharge is not just due to fraud. What part of 11 USC 727 is mentioned in the Motion? Under subsection (a) there are 12 items. Does the motion tell you wish one(s)?

[montana59451]

No, it does not say. It simply says 11 USC 727.

It is a carbon copy of the first one and they both say:

"The Trustee in the above entitled case hereby moves the Court for a 90 day extension of time to file a complaint objecting to discharge under 11 USC 727. Without an extension, the time period for filing such a pleading will expire on Sept 2, 2010 (the first one said June 4, 2010). Trustee has not completed her review of the documents she requested from Debtors and her investigation of their various businesses. Trustee anticipates she will need additional information from Debtors fo complete her investigation. Trustee will not be able to determine what additional information she needs, request and receive that information from Debtors, complete her investigation and determine if she will object to discharge before Sept 2, 2010. Trustee requests an extension of the deadline to file a complaint objecting to dischargability through and including December 1, 2010."

The first one asked for 90 days but she set the date for 9/2 which was actually 106 days. Something is wrong there

The second one asked for 90 days and it is 90 days from today to 12/1.

She has not asked us for anything. I cannot believe the Judge would sign the order so fast.

Need to file an objection but not sure if I need to reference case law, or just tell the judge she has had more than ample time to get this done in 106 days. We gave her EVERYTHING she asked for at the 2nd 341 meeting.

[despritfreya]

Okay, now I understand.

While a pain in the you know what, this is not unusual. Obviously you have operated several businesses. I will assume the Trustee has hired an attorney to help her. She has to investigate your business records to make sure you are not "hiding" anything within the business. (You know everything is above board but she does not and she has a job to do.) The problem is that she has many other cases to deal with at the same time and is having a tough time reviewing what ever it is that she needs to review.

Before you file anything - by the way, you will lose the argument as the Judge will give the Trustee what time she needs - call her, or, if she has hired an attorney, call the attorney. Ask point blank what additional info is need. You could even send a letter that you want a list of items within ten (10) days and that, while you are not opposing the second extension request, you will oppose any additional extensions. Word the letter professionally as you can attach it as an exhibit if she requests a third extension.

I realize you want to get on with your life and cannot do so without the entry of a discharge. What you have to realize is that this delay (no matter how aggravating) is a small price to pay to get rid of, what I am going to assume, is a ton of debt, much of which probably stems from failed business ventures. Be patient.

[montana59451]

No it does not appear that she has hired an attorney. She seems to just be doing this herself. I know she does not understand the fundamentals of a trucking company (she did not know you could sell your receivables "factor"them), but we are above board.

Are you saying we are really OK, just put up with her "lack of speed"?

Should I hire an attorney at this point? I like your idea of a letter with a 10 day deadline, but sometimes is it better to let a sleeping dog lie? I mean if she did nothing in 106 days what makes anyone think she will do something in another 90?

[despritfreya]

"I like your idea of a letter with a 10 day deadline, but sometimes is it better to let a sleeping dog lie? I mean if she did nothing in 106 days what makes anyone think she will do something in another 90?"

If you are concerned that a 10 day letter will be too much then ask for the list within 30 days and point out to her that if you get the list within 30 you should be able to produce the documents within the next 30 if not sooner, which gives her another 30, maybe more to review them. This would be a nice "compromise" so that she should not feel the need to file a 3rd Motion which you would feel compelled to oppose.

I think you running out to hire counsel is a bit premature. I have seen your scenario more than once and, for now, unless there was/is something shady going on, you are probably ok just playing the waiting game.

I understand her confusion over the factoring of receivables. The 1st time I dealt with it I had a tough time getting my brain around it. I am surprised that she did not hire an attorney since you had/have a trucking company. You have a tough business in this economy.

[montana59451]

Thank you for your input. What you say makes sense to me. My thought is that by at least speaking to a local atty (here in MT they are few and far between) at least he would know this Trustee i.e. is she just being a pain in the butt, does she just not like truckers, whatever.

I may just do the 30 day letter in a week or so (this way she can lose my file again for a while...like 90 days! and then this too will pass!

[blockhead]

No it does not appear that she has hired an attorney. She seems to just be doing this herself. I know she does not understand the fundamentals of a trucking company (she did not know you could sell your receivables "factor"them), but we are above board.

Are you saying we are really OK, just put up with her "lack of speed"?

Should I hire an attorney at this point? I like your idea of a letter with a 10 day deadline, but sometimes is it better to let a sleeping dog lie? I mean if she did nothing in 106 days what makes anyone think she will do something in another 90?

I couldn't dream of filing without a lawyer although seems a lot do.
I had a bunch of extensions the Ch7 trustee threw in and it took 7 mths to get a discharge. They just needed time to do their due diligence.

If you want to piss them off, go ahead and complain!

[screentest]

Montana,
I feel your pain as I am going down a similar road with our trustee and the US trustee. Still don't know what they want and the waiting and frustartion of being in limbo is really stressing.

I come to the boards for therapy and some small shred of good news every now and then based on what others have experienced. I hope all the best for you and I hope it works out well!

ST

[tcreegan]

careful searching

Hi montana59451,

Nothing to help you, looks like despritfreya has that covered, just wanted to warn you that if you google "objection to motion of enlargement of time" the last two words are critical

Hang in there northern neighbor....

Tom in Colo

[BobWang]

No it does not appear that she has hired an attorney. She seems to just be doing this herself. I know she does not understand the fundamentals of a trucking company (she did not know you could sell your receivables "factor"them), but we are above board.

Is the factoring company a recourse factor or a non-recouse factor (like D&S)? If its a recourse their holding back a reserve on your receiveables, and that is future income in the trustees eyes....

[despritfreya]

In response to:

"and that is future income in the trustees eyes...."

I am going to assume that the trucking company is either a corp or an LLC. If my assumption is correct then the "reserve" is not OP's future income and is not an asset of the estate. I am also going to venture a guess that the entity's debts (including the factor, liens on the various units, past due taxes (if any) as well as any commerical lease space) far exceed the value of the assets. I am also going to venture a guess that there is no competitor who wishes to buy the stock or LLC membership and that eventually the Trustee is going to abandon the asset. I could be wrong but considering the economy. . .