will the trustee chew me out at the 341 meeting?

[mgs0987]

OK, I've been posting on here for awhile and have officially filed chapter 7 bankruptcy! I'm EXTREMELY worried abotu the 341 meeting because I somehow managed to remain current on EVERYTHING up until the date my case was filed. I am 23, single, and I currently have 2 vehicles. One is a lease for 569.00 per month (this is definitely going to be included and repo'd after the case is over) and another that I purchased 6 months ago for 256.00 per month. Will I be questioned like crazy as to why I have two vehicles? Honestly, the lease was a huge mistake and I didn't even think I would be able to hold on to it...I knew I was going to end up filing bankruptcy so I purchased a new (used) vehicle that I can reaffirm and keep after the case is over with. I was expecting to have the leased car repo'd a long time ago, but for some reason I kept paying everything and basically having my mother buy me groceries and gas.

What will happen? has anyone else been in the same situation? another thing I'm worried about is that my credit report shows that I've never been late on anything. basically I've been robbing peter to pay paul for a LONG time and somehow i never missed any payments....is this a red flag, too?

[tcreegan]

Hi mgs0987,

Congrats on the filing!
To cure jitters and fears about the 341, go watch a few. Find out where they are held and sit in on some. Sure-fire cure to settle the nerves.

The trustee should not have a problem about being current on debt payments, they want to see neg DMI on the means test and Sched I&J Got that and you should be OK. The only problem will be everyone asking why you wasted all the $$ on debt that was going to go away anyhow....
(Doesn't help the credit report, maybe a nickels worth compared to the BK at twenty bucks...)

No problem with two cars since one is going away. Ditching the overpriced gas guzzler and getting a good low-mileage used car is very very common according to the posts I have seen on the forum. Probably applauded instead of questioned....

The only questionable item would be if you used both for expenses on the means-test. Someplaces this is OK, not other places, and it is contrary to the UST policy of one vehicle per taxpayer.

If you don't need both for expenses, you are home free...very good planning on the vehicles, good job!

Tom in Colo

[keptdigging]

The trustee is generally not there to question your judgment or sanity. He's there to administer the law and see if there's anything for your creditors. Incorrect, incomplete, or missing paperwork... math errors, etc might upset him. But he's not there to lecture you on being a deadbeat. And it isn't a judgment call as to whether you're worthy. It's law, math, process.

And the second, lower cost vehicle is exactly what you should have done.

[AngelinaCatHub]

The trustee is generally not there to question your judgment or sanity. He's there to administer the law and see if there's anything for your creditors. Incorrect, incomplete, or missing paperwork... math errors, etc might upset him. But he's not there to lecture you on being a deadbeat. And it isn't a judgment call as to whether you're worthy. It's law, math, process.

And the second, lower cost vehicle is exactly what you should have done.

Excellent answer. I would only add that as long as you paid evenly and all creditors as to their minimums, you have no preferential payment problem. There is nothing wrong with keeping current. I doubt the wisdom of that now that you are filing as it is throwing good bucks after bad so to speak. You still owe the money, but in essence you have taken your Mom's money for your bills since she had to help you out. I doubt she gave you enough to list it though as it would be income. Better look into that.

Getting a used car is prudent as getting a new one right before bk would certainly look bad and you take an up front hit in it's value as well. Most 341's are 'a piece of cake'. Relax, it will take five minutes, look prepared, dress neatly, and answer only the questions asked with as few words as possible. 'Hub