California BK/Trustees/income

[Lajazz947]

Interesting situation for me.

I just paid my attorney his retainer and I am filing out his questionaire.

I will try for a 7 but will most likely do a 13.

My situation stems from losing nearly $300,000 in a land fraud deal to a former childhood friend who i am in litigation with now.

I make good money, about $10,000 per month last 6 months and and maybe $12,500 average next 3 so I would fail a means test initially but still the debts that I incurred due to the fraud are tremendous.

I tried making minimum payments, credit counseling in June 2008, sent letters to creditors in March of 2008, got on payment plans in may 2008 but still not low enough.

Sent what I could even if it was below their acceptable minimums.

Have rarely used any CC's recently and made payments as I could. hardly any use over the last 6 months, all CC's destroyed, accounts closed.

Finally too much to bear so I have to file BK.

$220,000 in unsecured, home is OK since owe more than worth.

Questions:

Are trustees in California any different?
How will future income be viewed?
How will my attempts to work with creditors be viewed?

Thanks for any help.

[Phillymanhere]

I'm a newbie here, but I will post since no one else has posted.

First, you can read through threads here and find comments on California. But the relevant information may not be "How do Cal courts view bk?" but rather "how does the Cal central district or the eastern district of the northern district (etc.) view bk filings?" You file in a particular district depending on your residence.

The real way to find out this regional information is to talk to lawyers who work that particular circuit. I'm guessing your attempts to work out arrangements with creditors will help establish that you intended to repay the money you borrowed. But this is a judgment call based on the totality of circumstances, as they say, including how much you owe, how much you were offering to pay, etc.

As far as future income, this all depends. If you get discharged for a chapter 7, future income probably won't matter. If you get bounced to a chapter 13, then a future increase in income may mean you have to return to the court to increase your monthly payments.

But this is all getting way ahead of things. The best things you can do now are:
1.) read through a zillion threads on this board. The moderators and a lot of experienced people give really detailed thoughtful answers. Reading through a ton of the threads (even ones that don't seem to pertain to your situation) will give you an education on the law.

2.) Schedule visits with 4 or 5 bk attorneys in your area. Run your financial situation by them and see what they have to say. This is the best way to get a perspective on your situation and how the courts are likely to look at it.

Good luck.

[Cali]

What part of California are you in?

My attorney told me that there is only one not so tough trustee, but the rest are tough.

[Lajazz947]

What part of california am I in

I live in Southern California.

Thanks for any help.

[Cali]

I am the San Diego area, and I was lucky to be assigned to the not so harsh trustee.

Future income depends on the trustee.

Working with the creditors is great if they all say yes and stick to the agreement. But if you can't continue on this agreement for very long, it would be better to just file BK and be done with it.

And when you file C13 the creditors are required to go by the plan, when you do it yourself they aren't.

I live in Southern California.

Thanks for any help.

[Lajazz947]

Thanks

Thanks for the information.

On the question of working with the creditors I was actually wondering whether or not a trustee would look at this situation and say " he was actually trying to repay them " or is it usually just a mechanical issue where the trustee merely looks at numbers.

I am just asking for a trustee to see that although it appears that I fail a means test ( at first blush, I am working with my attorney) I WAS trying to avoid this mess.

Maybe I am worrying too much.

[Cali]

I really don't know if working with your creditors will impress the UST or not. I was under the impression that they look at numbers and that is it.

[Lajazz947]

thanks

Thanks, I thought as much since UST's work for creditors.

I am doing my research though and I am still in the preliminary stages.

I am going to go into this one fully prepared for a fight and an ultimate win.