Our attorney wants us to sign tomorrow for a 7. Chances of trustee converting to 13?

[mslaw]

So we've been "on the line" the whole time. We bought a car and did some other things (like changes in insurance) to up our expenses. She said she's going to file it as a 7 but I"m wondering what the chances of a trustee converting are. And if he does say he wants to convert to a 13 at our meeting, is there anything we can do? Thanks!

[HHM]

That sounds like an excellent question for your attorney. There is no way we can estimate the odds, it depends on the facts of the case. If your attorney is filing as a 7 and if she is experienced, I doubt you will have a problem.

However, as far as expectations go, odds are, you won't know anything as a result of the 341 meeting. The Trustee you meet with at the 341 meeting is the Panel Trustee, he is NOT charged with reviewing the case for chapter 13 vs chapter 7 issues. That task is reserved for the US Trustee. Districts work differently, but rarely do UST's show up at the meetings. They will simply file a notice of presumed abuse within 10 days after the 341, that is when you know you "might" have a problem. Most of the time, when they file that notice, it is simply to give the UST more time to review the case. They will then usually with draw the Notice and Motion once they are satisfied the case is really a chapter 7.

[mslaw]

So if the UST were to motion to convert to a 13, would there be anything we could do at that point?

[HHM]

So if the UST were to motion to convert to a 13, would there be anything we could do at that point?

Definitely. Generally, the motion is filed so the UST can preserve their right (they have to file the motion within a certain time frame). Once the Motion is filed, the UST will normally contact your attorney and request additional information. What happens from there really depends on what is the issue. Most of the time, the additional info will satisfy the UST as will the UST's conversations with your attorney. If the issue is obvious and you would lose, then you have a choice, convert to 13, or let the chapter 7 be dismissed. If the issue is grey, but the UST will not budge, your attorney can file an Objection to the Motion and it will eventually go to a hearing for the judge to decide.

[mslaw]

(so nerves here about filing so lots of hypothetical questions)

If we had to choose to dismiss the Ch7 would that put us out of the running to wait a few months and file again?

[mslaw]

And thank you.

[justbroke]

Yes, you can fight the presumption. If the UST is trying to push you to a Chapter 13, that means that they found disposable income. You just need to prove that the income is otherwise not disposable under the law. Sometimes, this is easier said than done.

Just see what happens because it is what it is at this point. If the UST challenges expenses, you and your attorney will just need to show that they are legitimate expenses and allowable.

[basketsbears]

Yes, you can fight the presumption. If the UST is trying to push you to a Chapter 13, that means that they found disposable income. You just need to prove that the income is otherwise not disposable under the law. Sometimes, this is easier said than done.

Just see what happens because it is what it is at this point. If the UST challenges expenses, you and your attorney will just need to show that they are legitimate expenses and allowable.

That is what my attorney said today (I think anyway) when we filed our 7. There was a box on the form, something about presumption of abuse, but she felt very comfortable with our case being a 7, and she said at our 341 meeting will explain things. I know I put this in pretty simple terms, but that is how I understood it.

We just figure - worst case scenario is we would end up in a 13, maybe even in a 3 yr plan due to our lowered income now.
We just want to get it over with.

Good luck!

[justbroke]

Are you saying that your attorney actually checked the "Presumption Arises" box on the top of your Form B22A (Statement of Current Monthly Income)? I am just wondering based on how you worded your response.

[basketsbears]

Are you saying that your attorney actually checked the "Presumption Arises" box on the top of your Form B22A (Statement of Current Monthly Income)? I am just wondering based on how you worded your response.

I believe so???? I am not sure which form, as there were so many. The way she explained that was that it would be flagged that way or something. She didn't seem concerned about it at all though.

My husband had to sign an affidavit that went with the form indicating that the form was not a correct reflection of income as it is now.