UST filed another motion to extend deadline

[spydc]

Hi Everyone. I originally posted about filing for CH7 near the end of September 2011 and everything was going well until the Office of the UST filed a motion to extend deadline near the 60 day mark. I was served a subpoena to submit a whole slew of documentation in which i provided. Fast forwad to today which is the new 60 day mark. and guess what? The UST filed another freaking motion to extend the motion to dismiss to June. WTF.. this is nuts. Very stressful experience. I don't know if they are playing with me or what? I sent them all the documentation well in advance of the new 60 day mark and they want another 60 days?!? They had my documentation since January. Why didn't they just force me to chapter 13 then or dismiss the case?

In any event, my lawyer told me after the first extension that if they filed a second motion to extend, that he would object to it. I'm not sure if he is going to or not. I haven't heard from him yet. Any chances that the objection will be sustained?

Another question.. I noticed that all my creditors listed in the bankruptcy case have already updated my credit report to show $0 balance and included in bankrupcty. My credit report looks as though everything was discharged. If my case gets dismissed, is there a chance I will fly under the radar and the creditors won't come back to harrass me? Or will they immediately know it was dismissed and try to come after me. I'm trying to weigh the pros and cons of converting to a chapter 13 if I am forced to. My lawyer mentioned that if the case is dimissed, the creditors may not even know because they may have written off already and archived it.

Thanks for any responses in advance.

[justbroke]

If your case is dismissed there is a chance that a whole bunch of junk debt buyers (JDBs) will start listing COLLECTION accounts which are worse than having a 30-day or even 90-day late reported!

I would keep in touch with my attorney to make sure they are going to object. There is usually NO reason a UST should be able to extend discharge 120 days.

[spydc]

Hi Justbroke,

Thanks for the response. So you are saying if the case is dismissed, there is a high probability that the creditors will know and start coming after me again? Right now everything is listed as $0 balance and discharged.

As for the attorney, I just found out about an hour or so ago, so I haven't spoken to the attorney but I emailed him. I'm going to make sure he objects. I hope he does. He mentioned he would but I don't know.

One last question. My lawyer mentioned that if my chapter 7 case is dismissed, the debt will then be forever marked as non-dischargeable so I wouldn't be able to file bankruptcy with the same debt again. Is this true?

I just checked the documents they filed. It says they filed a motion to extend so they can review the documents I sent them back in January. So that means they didn't even bother to look at any of it. oh gosh. I hope my lawyer objects.

[justbroke]

Once a case is dismissed without discharge, the creditors are free to start collecting again and all accrued interest and fees are added back in1

One last question. My lawyer mentioned that if my chapter 7 case is dismissed, the debt will then be forever marked as non-dischargeable so I wouldn't be able to file bankruptcy with the same debt again. Is this true?

The only way this happens is if there was FRAUD and the case was dismissed with prejudice. Otherwise, you could refile immediately and you could discharge the debt. It concerns me that you're asking and that your attorney presented it in such a way. Do you know if the UST is proceeding to dismiss based on actual fraud?

[spydc]

No.. it isn't a fraud situation. The UST is just questioning the income because I got a new job shortly before filing. Makes it look like I make way too much money. My lawyer took too long to file. I made a mistake with this lawyer because i didn't know any better and a friend of mine used him to successfully complete a ch7. I kinda knew i was screwed when I saw him referring to some bankruptcy hand book a bunch of times. However, I remeber him distinctly saying that getting the ch7 dismissed would be bad because that means i wouldn't be able to have the debts discharged anymore. He said that's why it would be important to convert to ch 13 if the trustee forces me to.

[justbroke]

It is a very poor excuse for the UST to want another 60 days to review materials that they have already had for 60 days. Hopefully your attorney uses this moment to object to the extension of time to file a complaint on dischargeability!

[keepsmiling]

Hey Spyd, sorry you are having so much headache with this. Yeah, wtf is right. They didn't look at the documents....omg....
But look at the bright side- you got a new job!!!
It's going to work out out ok. You have friends here and lots of good advice. JB and the other pros here won't let the sitch get too out of control here. There will be some kind of motion to file somewhere along the line I'm sure.
do me a favor and pm me the name of your atty? I want to make sure we don't use him when we finally get around to filing.

[despritfreya]

My lawyer mentioned that if my chapter 7 case is dismissed, the debt will then be forever marked as non-dischargeable so I wouldn't be able to file bankruptcy with the same debt again. Is this true?

I agree with JB. If your attny told you this there is a problem.

If your case is dismissed based upon an abuse under 707(b) you have the absolute right to file a second case immediately. If you file a Chapter 13 even the lifting of the stay under 362 within 30 days does not apply.

If you are denied a discharge under 727 then those debts would not be dischargeable in a later filing.

Please get clarification from your attny. My guess is that you misunderstood what he said.

As to this second extension request, I would be objecting (assuming there was no “just” cause). However, in all likelihood, the Court will grant the Motion but admonish the UST to put up or shut up within the time frame of this second extension.

Des.

[keepsmiling]

sorry, wrong thread

[spydc]

I received a response from my lawyer. He mentioned that he is not going to object because he is sure the judge will grant the extension. He further adds that objecting when the judge will grant the motion isn't going to help my case and could raise a red flag. He mentioned he was going to write to see if they can reduce the extension to 30 days.

So now i'm going to have to go through another grueling waiting period.

[spydc]

Well looks like it is good news so far. After submitting amended schedules I and J, the UST filed for a withdrawal of the second extension. It was filed a few days ago. So now the second extension was not granted and now I wait. How long before I see the precious "discharge" status on pacer? It has been approximately 232 days since I filed.

[justbroke]

If the "next" 60 days was coming up, then it should come soon. However, there may be flags on the case preventing it from "auto" discharging. I would check PACER (Case Summary) and the Flags to see what is going on.

[spydc]

Justboke,

The UST filed for the first extension before the expiration of the first 60 days and it was granted. The UST filed for a second extension on the "second" 60th day but the court date to review the motion was a month later. In the end, the UST filed for a withdrawal before the scheduled court date.

Pacer docket report:
05/14/2012 Minute of Hearing Held, OUTCOME: Withdrawn (related document: 11 Motion to Extend Time To Object to Discharge, in addition to Motion re: Extend Time To File Motion To Dismiss. Filed by United States Trustee.) (axg) (Entered: 05/15/2012)
05/14/2012 14 Withdrawal of Document (related document:11 Motion to Extend Time To Object to Discharge, in addition to Motion re: Extend Time To File Motion To Dismiss. Filed by United States Trustee. Hearing scheduled for XXXXXX) filed by United States Trustee. (United States Trustee, XXXXXX) (Entered: 05/14/2012)


In addition, the flags are : MEANSNO, NARPT, EXTOBDIS

Does this mean it will not auto-discharge? Do I need to do anything at this point? thanks.

[justbroke]

In addition, the flags are : MEANSNO, NARPT, EXTOBDIS

MEANSNO is just that you "qualify" for a Chapter 7.
EXTOBDIS means that you have an extension to the timeline to object to dischargeability.
NARPT means Trustee Report of No Distribution

With that EXTOBDIST flag, I think your case needs to be manually discharged. Just wait until a few days after the discharge date and see if it was discharged. If not, call your Case Manager and see if they can do it right over the phone (they will sometimes do this!).

[spydc]

Justbroke,

Thanks for the reply. As far as the new discharge date, isn't it immediately since the second extension was not granted? I'm a little confused as to when the new discharge date should be?