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    Evidentiary Hearing

    Let me start by saying that we are in Michigan. We have retained counsel. We are a family of four, including two children: six and two. I am comfortably employed, but my wife has been laid off for two years prior to our 341. She went back to school after a year of searching for work, and our pursuit of Bankruptcy relief is to help our family stabilize a bit in the wake of all these changes (the new addition to the family, my wife's unemployment, and her continued education to pursue employment later).

    We had our 341 meeting in October, which was attended by an attorney for the Trustee. Naturally, that was unexpected. The 341 concluded with the representative of the Trustee asking for more documentation regarding our children's daycare expenses. He also had a bone to pick with the number of exemptions I claim on my W-4. Our attorney told us not to worry, and assured us that with some clarification there would be no further issues. She did warn us that this individual was new to the Trustee's office and was out to prove something. I'm not sure how true that is, nor what it was that caused him to either pull our case out of the stack randomly or notice some red flag that caused him concern.

    Shortly afterward, we received a letter indicating that a motion to dismiss was granted by the judge and our lawyer responded. A hearing in front of the judge was subsequently scheduled, which we attended last week.

    Prior to the hearing, we met with our attorney who indicated one of three results could come from the hearing: the judge could grant the discharge, he could dismiss our case, or we could move on to an evidentiary hearing. Our attorney indicated that an evidentiary hearing would not be desirable. Then, as we waited to enter the courtroom, the representative from the Trustee's office approached our attorney and said that he was just going to ask the judge for an evidentiary hearing. Sigh. He said he was still not convinced my W-4 withholding couldn't be adjusted (thereby reducing our tax refund at the end of the year and getting more in my check per week), and that he was perplexed by the number of times our daycare numbers have changed during the course of this process. In reality, my wife's school schedule changes frequently as semesters come and go which genuinely causes our daycare costs to fluxuate. I'm not sure what to do about my withholding, because I'm worried if I over-estimate the number of exemptions I'll end up owing at the end of the year and if I don't claim enough exemptions it won't make a difference. My entire life, I've left it at zero and just let things work themselves out at the end of the year fr better or worse.

    So there is the big long story. I'm wondering what to expect from an evidentiary hearing. I'm going to ask my attorney the same question, but I'm afraid that we're going to get the standard "There's nothing to worry about" and "We have everything we need from you" responses we've received all along. Neither of these things have seemed to be true at any given time.

    I will say, that our situation is complicated by the fact that I make a fairly comfortable living and I'm thankful for that. We pass the means test, but it's close. I have a feeling the Trustee's attorney is trying to push the numbers over the edge and break our means test. Will we be in trouble for a 'lack' of evidence at this hearing, or will we be OK? Just don't know what to expect here.

    #2
    Hi sussudio,

    not convinced my W-4 withholding couldn't be adjusted (thereby reducing our tax refund at the end of the year and getting more in my check per week), ...this seems more like a Ch 13 issue...are you Ch 7 or Ch 13?

    he was perplexed by the number of times our daycare numbers have changed ...obviously doesn't have kids...

    No help on the evidentary hearing I'm afraid, but wanted to clarify a couple things so other more knowledgeable folks can weigh in.

    Ch 7 or Ch 13 ? BK trustee or US Trustee ?

    Also wanted to lend an encouraging word, hang in there and keep us posted on the results!

    Tom in Colo

    Tom in Colo
    Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

    Comment


      #3
      Thanks, Tom, for the kind words. This is in fact a Chapter 7. And the individual is from the US Trustee's office.

      He was only asking questions at the 341. At the subsequent hearing, there were some arguments made both ways in front of the judge, and the UST representative made the case for an evidentiary hearing. The judge didn't seem to want to have a protracted discussion at the time about the merits of our claim regarding our changing childcare requirements. I expect that's the purpose of this evidentiary hearing. There hasn't really been an opportunity to go full-bore argument mode with him. Our Schedule J was a snapshot in time, and here it is six months later and things change. It seems like he's using this fact to cast doubt on the reliability of the information as a whole. If this schedule was enough to raise a red flag at our 341, and it was enough for the judge to call an evidentiary hearing, I'm wondering what good dragging this same document out in front of the court is going to do in the end? We'll see. Procedurally, I'm just not sure what to expect at this hearing.

      Comment

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