Bonus Pay after filing Chapter 7

[KAM465]

My attorney filed a "RESPONSE OF DEBTOR TO MOTION OF UNITED STATES TRUSTEE TO DIMISS FOR ABUSE PURSUANT TO 11 U.S.C. §§707 (b)(1), (b)(2) and (b) (3)" this afternoon. Arguments reference case law from district court my case is filed, hoping this helps in our argument. I have not discussed with my attorney since he filed the response but it was noted that a hearing is scheduled for 2/8/2012, not sure if this is something I will need to attend or if it will be postponed.

[despritfreya]

My attorney filed a "RESPONSE OF DEBTOR TO MOTION OF UNITED STATES TRUSTEE TO DIMISS FOR ABUSE PURSUANT TO 11 U.S.C. §§707 (b)(1), (b)(2) and (b) (3)" this afternoon. . . it was noted that a hearing is scheduled for 2/8/2012, not sure if this is something I will need to attend or if it will be postponed.

In my district the hearing would be nothing more than a "status hearing" or "scheduling conference" which just lets the Judge know how the parties wish to proceed. If that is what the hearing is then you most likely do not need to go but, of course, check with your attorney.

Typically the attorneys would have discussed, before the hearing, how long to keep discovery open, when a joint pretrial statement will be filed and how much time they think will be needed for the final hearing on the Motion. Between now and the time of the final hearing the parties would continue to try to work their differences so that a final hearing is not needed.

Des.

[KAM465]

Preliminary/Initial hearing re: Motion to Dismiss Case for Abuse Pursuant to 11 U.S.C. Sections 707(b)(1), (b)(2)
and (b)(3) Filed by U.S. Trustee

[despritfreya]

Preliminary/Initial hearing re: Motion to Dismiss Case. . .

Yup, sounds like a status hearing.

Des.

[KAM465]

Wanted to keep those of you following this thread up to date on the status.

Just posted on Pacer today, not sure if this is a good sign or not. Case was originally determined to be ans Asset Case due to a payment of $1400.00 to one of my creditors within 90 days of filing. Still have the Motion to Dismiss for Abuse pending with status hearing on April 4th. Gave deposition to USTT on 3/22 and she indicated she was going to proceed with dismissal. My attorney was going to present evidence to support our position. I also had to reaffirm my Lease with Ford Motor Credit (as mentioned in other thread) that Judge entered a motion to deny due to deficiency. We adjusted schedules I & J to reflect reduced expenses to leave a few dollars on the positive, he filed the forms today as well.


"Chapter 7 Trustee's Report of No Distribution: I, Xxxxxx X. Xxxxxx, II, having been appointed trustee of the estate of the above-named debtor(s), report that I have neither received any property nor paid any money on account of this estate; that I have made a diligent inquiry into the financial affairs of the debtor(s) and the location of the property belonging to the estate; and that there is no property available for distribution from the estate over and above that exempted by law. Pursuant to Fed R Bank P 5009, I hereby certify that the estate of the above-named debtor(s) has been fully administered. I request that I be discharged from any further duties as trustee. Meeting of creditors held and concluded. Key information about this case as reported in schedules filed by the debtor(s) or otherwise found in the case record: This case was pending for 5 months. Assets Abandoned(without deducting any secured claims): $ ###,###.##, Assets Exempt: $ ###,###.##, Claims Scheduled: $ ###,###.##, Claims Asserted: Not Applicable, Claims scheduled to be discharged without payment(without deducting the value of collateral or debts excepted from discharge): $ ###,###.##. Filed by Xxxxxx X. Xxxxxx II (Xxxxxx, Xxxxxx tr) (Entered: 03/23/2012)"

[AngelinaCat]

This sounds like a VERY good report. It sounds like that payment in question was abandoned. Congratulations!! Thank you for keeping us posted.

[KAM465]

Now all I can hope is for the USTT to change her mind and drop the Motion to Dismiss.

[despritfreya]

Now all I can hope is for the USTT to change her mind and drop the Motion to Dismiss.

You know I am very interested in your case and hope you are successful. Such is why I am sorry to be the bearer of bad news. All that has happened is that your Trustee has filed his report of no distribution and has asked to be released from his duties - he gave up the preference issue. This has nothing to do with the issues you face relating to your ability to file a Chapter 7. Remember, the interim Trustee is not the party that litigates the 707(b) issues. He has done his job and just wants to move on. Whether or not you win your fight does not impact your Trustee.

Des.

[KAM465]

Des,

Thank you for the repsone, it it pretty much what I anticipated but nothing wrong with hoping for the best. LOL

I should know more in the next few weeks as there is a status hearing via phone on 4/4 that my attorney will attend.

Until then I will think positive and hope for the best.

KAM

[oregonpilot]

nu nu nu nu nu nu nu nu .....thats my happy thoughts sounds for you KAM.
Not exactly sure HOW to spell the sound in my head. LOL
My thoughts are with you and hopein for the best!!!!

[KAM465]

Thanks Oregonpilot

[KAM465]

Well, an update for Des and the others watching this tread.

Had evidentuary hearing today with with UST and Judge and it looks like they are forcing our hand and into a Chapter 13, even though in a 13 I can show little to no DMI (actually negative) to pay into a plan. Guess you really can squeeze blood out of a turnip. LOL

Basically dragged it out long enought to pay off the 401K loan and now they say I should have DMI but still basically zero. Did not want to take into account that my income has decreased several $1000 dollars over the past 2-3 years which is partly why I am in this position. Now have until next tuesday to convert or the judge will rule on case and most likely dismiss. Basically after attorney and Trustee fees most likely will pay back less than 5% if anything to unsecured creditors.

Attorney was not happy with the outcome, but I did thank him for the effort and fighting for me. Ended up costing him some money as he probably has several hours or more in the fight that he will not get reimbused for. I feel bad that he will not be paid for his efforts, I guess will have to find a way to make it up to him when things are all done (that is if he can legally accept it).

Des and others that commented and lended support, I thank you; I guess I will be here with you all for the next 5 years or so. LOL

[ValleYum]

Well crudbuckets! I am sorry KAM.

Did they say anything about your mortgage payments in this hearing?

Best of luck as you transition and please check in throughout your 13 getting confirmed, etc.

[KAM465]

Valle,

They did mention the mortgage but in the end it was more the 401K loan repayment and contributions than anything else, both allowed in Chapter 13 which is why attorney was upset with the judge. Especially since she had written a dissenting opinion in an appeals case in support of our same argument.

Judge commented that because I was not behind on my mortgage or car payment, had longterm stable/secure employment (in this economy does this really exist?) I should be able to contribute some DMI to pay back creditors. I guess had I not been so close to paying off the 401K loan, it may have worked. I guess they would rather have me totally bottom out and default on both secured and unsecured creditors and them just maybe they will give me a discharge. Go figure.

KAM

[despritfreya]

. . . in the end it was more the 401K loan repayment and contributions than anything else, both allowed in Chapter 13 which is why attorney was upset with the judge. Especially since she had written a dissenting opinion in an appeals case in support of our same argument.

I'm sorry and disappointed (but not too surprised) that the argument did not rule the day. Your judge may have been sympathetic to your plight but her dissenting opinion does not help. She was bound by the precedent of that Appellate decision. Remember, according to Congress, BAPCPA "is a perfect law" - Ya right.

Anyway, I would think you are now looking at a minimal Chapter 13 Plan, something like the equivalent of $75 to $100 per month to the unsecured creditors. (I assume the Plan payment will be higher to cover any vehicle loans but the actual amount to unsecured creditors could be minimal).

Keep us posted.

Des.