Case closed by trustee but.....

[denny566]

had our trustee meeting and passed. Atty said trustee closed case, but then justice dept said they think we did not qualify and we made too much money and they want pay stubs,bank statements, bills, etc.
Any advice?? What can happen at this point????

[despritfreya]

The UST is looking to see if you "qualify" for a Chapter 7. You must be "over median income" filers and just squeaking by on means testing. You supply the requested information and wait to see what happens. Now that the UST has filed a Notice of Presumed Abuse, he/she has 30 days to file a Motion to Dismiss based upon the Notice - or seek an extension because he/she is not finished reviewing information. If a Motion to Dismiss is filed you have 3 choices: 1) fight it and try to prove you are entitled to a 7 discharge; 2) allow your case to be dismissed and then re-evaluate your situation; or 3) convert to either a Chapter 13 or 11. I always tell my clients. . . just because you lose the battle, does not mean you lose the war. If you don’t qualify for a 7 you can elect a different bk or no bk.

Des.

[filed]

Des, don't forget possible option 4 which forces the OP to just sit there and wait for the full 60 days from the 341, even if the UST does NOT file a Notice of POA within 10 days, because, despite what I think is rather plain language in 704, at least one judge has decided they have the full 60 days to use 707(b)(3)?
It seems the 10 day hurdle may have very little significance in reality, which is pretty frustrating.

[despritfreya]

It seems the 10 day hurdle may have very little significance in reality, which is pretty frustrating.

Absolutely agreed.

Des.

[jetsfan2010]

Im confused. Is the scenario that the trustee closed the case meaning you earned a discharged, and then it was closed?

[justbroke]

The Trustee can not close the case. The closing of the case is an administrative part of the bankruptcy process. What the Trustee can do, is ask to be "excused" from the case "closing out" his responsibilities when it is a no asset case. However, as explained, getting a Chapter 7 discharge is controlled by the United States Trustee (UST). The UST is responsible for making sure the debtor is deserving.

Some believe that they heard the word "closed" at the 341 meeting, but the Trustee (generally) uses the word "concluded" at the meeting. They typically say "this case is concluded" or "this meeting is concluded". That has no affect on the open/close status of the bankruptcy case itself.

Just for background, the (Panel) Trustee does not grant a discharge, the court does. The only thing the (Panel) Trustee is responsible for is liquidating the estate (if it's an asset case), and ensuring that all the basic paperwork is done correctly. If there are issues, the (Panel) Trustee will generally refer the case to the UST for review.