South Eastern Michigan Trustees

[Ann]

Hi to all... It as been a while since I have posted (although I have popped in and out a few times on here just to read the posts) and am now very much ready to file for bankruptcy. We had planned to file in January but it was not a good time for us and postponed it until now. We live in Michigan and although I'm so ready to put this long nightmare to rest I am so nervous about what I am facing in court. We are so far in debt this is our only way out. Yes, I feel bad. Although I begged my creditors prior to this that I needed to have my interests rates reduced to keep up with my MINIMUM payments they did nothing to help. Now they all want to settle. Not going to happen. I'm just asking anyone here who has filed for bankruptcy (looking to do a 7...above the median income but our expenses surpass our income) to please give me some input as to what I have to look forward to in court. Specifically in the South Eastern District. Will be paying my lawyer in a week to go forward with this. So if anyone can give me something to go on it would be most appreciated!

[Migal]

I was not in the South East District of MI, but rather Lansing. I feel like I had a great attorney who took care of everything ahead of time. This sure made the process as painfree as possible. It's gone pretty smoothly all along the way and I'm just thirty days away from discharge.

The trustee I had was thorough and asked all the regular questions but really, as everyone here says, if you are not hiding anything and have told your attorney everything you can think of, then you shouldn't have anything to worry about.

I think the biggest thing I had to keep telling myself is this is not a trial, but rather a process. I think we spend so much time judging ourselves that we expect that is what everyone else is doing also. This just isn't the case. Filing bankruptcy is paperwork pushing. (as long as you are being honest). You are not on trial.

Take some deep breaths, do your work that the attorney gives you to the best of your ability and be an open book. The "process" will work itself out.

[kornellred]

If you are above the median income and your expenses surpass your income, bankruptcy will not help you. Only lowering your expenses will. You must be including payments on your unsecured debt as expenses. If you are, your chances of filing a Chapter 7 are very slim.

[Ann]

If you are above the median income and your expenses surpass your income, bankruptcy will not help you. Only lowering your expenses will. You must be including payments on your unsecured debt as expenses. If you are, your chances of filing a Chapter 7 are very slim.

Am I the only one who thinks this sounds not quite right? NO I'm not including unsecured debt payments as expenses. I guess I'm not understanding what you are suggesting here. If my expenses leave me with no disposable income than a chapter 13 doesn't seem to be the answer either.

[Migal]

It doesn't quite make sense to me either, only in the fact that after your bankruptcy if your expenses still are way above your income, you're going to have to figure out how to lower your living expenses at that point. Right now though, I believe that it works to your advantage if they are actual, legitimate (sp?) expenses that fall within your districts allowable expenses.

[HakunaMatata]

Heed Migal's excellent advice...the 341 isn't a trial, it's a process. You initiated this process to gain control (no creditor begging), gain relief, and positively move forward.

Plenty of people experience anxiety prior to the 341. Most experience a hindsight 20/20 lesson following the meeting realizing the harsh emotions tied to the 341 aren't warranted.

Here are some observations/experiences from my SE MI 341:

My Trustee was cut-to-the-chase, fast, and formal. I was prepared to answer questions pertaining to unsecured debt payments amounting to $600 and a $4500 loan I had given to my sister. Neither were questioned. Instead, my house and car were topics of conversation. The questioning wasn't challenging; however, I felt ill-prepared because I couldn't recall the exact mileage on the purchase date of my newly purchased car and I didn't know the exact appraised value of my soon-to-be surrendered home. No big deal. The Trustee sent me on my way within minutes. I observed his interactions with others and he was consistent. I had a great attorney. He rightfully served an insignificant role at the 341. He introduced me and assumed a silent position as a friendly face.

Be prepared to pay for parking. Costs range from $10-20. (Good 'ole Detroit isn't exactly BK friendly!). There are surface lots, garages, and metered parking. If you park at a meter, the time limit is one hour. If you're ticketed, the cost is $20. However, if you pay within ten days, the cost is only $10. I opted for the monitored surface lot.

Expect plenty of activity in the waiting room. The Trustee rooms are not private (there is a nice big table designated for you and the Trustee). You can have your mobile phone (just be sure to turn it off). There is no security check.

Attire covered a vast range. I saw everything from jeans and sneakers to suits. All seemed acceptable.

Numerous individuals were visibly uncomfortable because their attorney wasn't present when they were called. From my understanding, this is a common occurrence (especially when Trustees run behind -my Trustee was one hour behind). Don't fear, you won't have to sit before the Trustee without legal representation. Your name will be called again when your attorney becomes available (they tend to bounce from Trustee room to Trustee room).

Overall, the experience was painless. Parking and patience, for me, were the biggest hurdles. Plus, I tried to go through the security check only to discover I had headed in the wrong direction. The security officer had to retrieve my items for me after I explained my BK status and I redirected.

[SMinGA]

I'm not in MI - but the tip to be prepared to pay for parking is valid in the North GA district also. $13 for parking at my 341!!! Of course, most major cities have limited space and so parking is at a premium. Just seems kind of ironic... We're there because we don't have money to waste, yet have to pay a hefty price to attend the hearing.

Oh - and in the North GA district, no camera phones allowed inside the courthouse without a special permit. I had to check mine at the security booth, since I didn't know to leave it in the car.

[Ann]

Thanks million Hakuna!!! About to pay my lawyer next week to get things rolling. I'm hoping for a chapter 7 and want to keep my house so I hope this isn't going to cause a "grilling" from the trustee. Appreciate all who has responded. I just wish it were over already!

[HakunaMatata]

The house questioning in my situation was nothing more than asset sniffing. I didn't have a current appraisal because I intended to surrender. I explained I didn't have this information and presented a verbal guesstimate based on a local REO of comparable size. The Trustee quickly abandoned my house following my 341 (comps aren't looking pretty in my city -formerly high valued homes have plummeted dramatically).

Some may feel as if they're being "grilled". My Trustee didn't have an aggressive stance (he was rather emotionless). I didn't mind the questions. He was simply doing his job. And...I was doing mine...being honest.

If the Trustee presents questions, try to keep your answers short (a simple "yes" or "no" suffice in many cases). I observed a few people trying to explain their situations in depth. I'm sure Trustees have heard plenty of stories. They simply want you to answer their questions quickly and concisely.

You'll be fine. You'll likely discover the greatest stress is deciding to file. Most 341s are anticlimactic.