Dangit! Dangit! Dangit! Bad news from PACER tonight re: Abuse

[alorth]

Had 341 on Wed. 11/9. Pretty much went smoothly. TT report was uneventful. But I had posted in another thread how about a week before the 341, the UST had requested additional paperwork.

Sure enough, they filed a Presumption of Abuse today. Saw it on PACER.

Don't know what's next.

Guess I'll talk to my atty. in the morning. This means extra $$$ to him we don't have.

We have no way to do a 13...we just don't have any DI!! Dangit! I'm so panicked now.

I just knew we'd hafta jump through hoops. So unhappy, even though I was basically expecting this. I was just hoping for the best.

So I'm guessing we have 30 days to answer? Something like that. The deadline on PACER say 1/8/12.

Time to get all the documents, receipts, etc. etc. together (they're actually already together, waiting for this circumstance).

UST obviously has questions he wants answers to being that our income is 2x median. But debt and medical expenses are so high...especially house pmt. and taxes, which we are staying in the house. Medical prevents me from working anymore right now.

Maybe he's just looking for proof of all this?

I guess.

[mountanddo]

Good luck to you. It's good you have all your ducks in a row and have all the paperwork already.

[AngelinaCatHub]

This is not at all uncommon. It simply means the numbers must be justified.

Presumption of abuse is automatic for debtors with above median income if they have enough projected disposable income to be able to pay general unsecured creditors:

http://bankruptcy-options.org/bankruptcy-newfaq.asp?faqgroup=11&index=8

This is a good explanation on this link site. 'Hub (beware small print)

[AngelinaCatHub]

The finding of presumption of abuse may be overcome by demonstrating “special circumstances.” Special circumstances is defined in the law as “a serious medical condition or a call to active duty in the Armed Forces, to the extent such special circumstances that justify additional expenses or adjustments of current monthly income for which there is no reasonable alternative.” In order to establish special circumstances the debtor must provide documentation and a detailed explanation that makes the claimed extra expenses or adjustment of income necessary and reasonable.

http://bankruptcy-options.org/bankruptcy-newfaq.asp?faqgroup=11&index=8

More from same location. Relax, your lawyer is paid to worry for you. Let him earn that right. 'Hub

[HHM]

I agree, probably not much to worry about, the UST must file the presumption within a certain time frame, so they do so to give them more time to review the case. If you are able to satisfy the concerns, the Presumption is Withdrawn. This is common procedure.