What a mess

[cz3ch]

For those who have been following my posts this may be redundant but I really needed a place to vent.

I filed for Chapter 7 on 9/30/12 and motioned to convert on 10/24/12 after a change in my expenses made me eligible for Chapter 13. Ever since then I've been riding an emotional roller coaster with this bankruptcy case and things have become very complex. Here are my areas of concern:

1.) I'm going through a divorce and my lawyer did not include my wife's income and noted on the petition my divorce is pending. She's taking a forward-looking approach to things but it does not really sit well with me. Even after the lawyer explained it wouldn't be a problem and the trustee would look at the totality of the circumstances, I'm still concerned about this.

2.) Numerous grammatical and typographical errors. Misspelling of my name on pay advices submission, misspelling of my wife's name under former spouses, incorrect dollar amount (off by 50$) on my schedule I and means test.

3.) My wife has a house which she bought 5 years prior to our marriage and is considered a sole and separate property. I have no community interest and have not paid into the house whatsoever, but I'm still worried the trustee may try to snag the house.

4.) My friend is driving my financed car (< 3000 of equity and will be reaffirmed/retained) and paying the note for it. My lawyer has listed it as income on the means test and schedule I to offset the expense but has not said anything about listing it under schedule G or noting that it's considered transferred property. Waiting to hear back if we need to list this arrangement and if so how.

5.) I don't have many assets, very few personal belongings. So I listed what I have and exempted it, just not sure how this will look to a trustee seeing as my assets are so minimal.

6.) Waiting for my case to convert to a chapter 13. It's been sitting for a month waiting for the judge to sign the proposed order, I'm hoping that it gets signed prior to 12/6/12 so I don't have to go to the chapter 7 creditors meeting.

All in all my fear and anxiety is driven by possibly having to go to the Chapter 7 trustee meeting and doing so unprepared. We have a multitude of amendments to make and I don't know how to explain to the trustee the corrections if the amendments haven't been made. My lawyer says she will do them after the case converts to a chapter 13 but in the event I have to go to the creditors meeting I feel very lost on how to answer questions and what to say in regards to all of the items I've laid out here.

I'm sure my bankruptcy is not the most complex is history but it is getting messy. I'm doing my best to keep my head up high and not to stress too much. Honestly, my worst fear is being accused of bankruptcy fraud and having to go to prison. At this point I have a hard time sleeping, staying calm, and remaining healthy.

Thanks to all of you who have given me advice or feedback in the past. This post is more of a vent than anything but any feedback, reassurance, or straight up honest words would be sincerely appreciated.

Sorry for the long-winded post and thanks in advance!

[justbroke]

If you have a pending conversion, you should not need to attend the Chapter 7 Meeting of Creditors. Do you not talk to your attorney? From what you write the attorney is going to address the amendments and you should be fine. Unless I filed pro se, I would not be as worried as you appear to be.

There's nothing else I can tell you but that "it is what it is" at this point. I don't see any issues since you are converting to Chapter 13.

[LadyInTheRed]

Trust your attorney. You pay him to worry about the details. A forward looking approach is supported by a U.S. Supreme Court ruling in the case of Hamilton vs. Lanning.

Not all errors make a difference. The ones that do are easily fixed by amendment. When the amendments are ready for your singature, ready them carefully before signing.

Even if you do have to attend a Chap 7 341, your attorney will be there to answer the kinds of questions you are worried about. What is more likely to happen is that the trustee will see a conversion is pending and continue the 341 pending the conversion. But, I think JB is correct that you won't have to attend.

The trustee cannot take the separate property of a non-filing spouse. Besides, the trustee does not take property in a Chap 13.

Did you knowingly lie or provide incomplete information on your petition? If not, you don't have to worry about fraud. Typos and misspellings are not fraud.

A lot of people who file BK have minimal assets. If you listed everything, you have nothing to worry about.

Once the conversion order is entered, ask your attorney for an appointment to sit down and discuss your questions. But, unless you have a good reason to question advice you already received, I don't suggest you question it other than to clarrify what you don't understand.

Try to relax and take this process one step at a time. No sense in worrying about what might happen, especialy when there is no good reason to think it will happen.

[cz3ch]

If you have a pending conversion, you should not need to attend the Chapter 7 Meeting of Creditors. Do you not talk to your attorney? From what you write the attorney is going to address the amendments and you should be fine. Unless I filed pro se, I would not be as worried as you appear to be.

There's nothing else I can tell you but that "it is what it is" at this point. I don't see any issues since you are converting to Chapter 13.

The meeting is scheduled in case my case does not convert in time. Yes, the attorney said she was going to address the amendments after the case converts. I just didn't know how to handle the possibility of the Chapter 7 creditors meeting happening and the amendments not being filed. Ie. What to say if questioned by the trustee if there are any corrections/etc. You're right, I should not be this worried. I guess it's because there's a lot of unknown out there and all is pretty much out of my control. All I can do is roll with it.

[cz3ch]

Trust your attorney. You pay him to worry about the details. A forward looking approach is supported by a U.S. Supreme Court ruling in the case of Hamilton vs. Lanning.

This is a good read, I had no idea that a forward looking approach is doable. Definitely good news and probably on par with what the lawyer was thinking.

Not all errors make a difference. The ones that do are easily fixed by amendment. When the amendments are ready for your singature, ready them carefully before signing.

I've listed all the errors that I could find in my filing with the attorney who will amend at which time you can be sure I will review carefully.

Even if you do have to attend a Chap 7 341, your attorney will be there to answer the kinds of questions you are worried about. What is more likely to happen is that the trustee will see a conversion is pending and continue the 341 pending the conversion. But, I think JB is correct that you won't have to attend.

This is good news as well. I just somehow felt I'd be left there hanging high and dry for answers if I was confused by the trustee's questions or felt uncomfortable. The 341 has been continued once due to something not being filed with the trustee. So 12/6/12 will be my first 341 with the chapter 7 trustee should my case not convert in time.

The trustee cannot take the separate property of a non-filing spouse. Besides, the trustee does not take property in a Chap 13.

I was aware of this but my worry got the best of me and was concerned with her property being in jeopardy.

Did you knowingly lie or provide incomplete information on your petition? If not, you don't have to worry about fraud. Typos and misspellings are not fraud.

Nope, just a few oversights when signing which will be amended to correct them.

A lot of people who file BK have minimal assets. If you listed everything, you have nothing to worry about.

Yes, I listed everything. I just automatically assumed the Chapter 7 trustee would go on some sort of witchhunt.

Once the conversion order is entered, ask your attorney for an appointment to sit down and discuss your questions. But, unless you have a good reason to question advice you already received, I don't suggest you question it other than to clarrify what you don't understand.

Try to relax and take this process one step at a time. No sense in worrying about what might happen, especialy when there is no good reason to think it will happen.

We already have a tentative meeting set to discuss any open issues and to get my plan in place for Chapter 13. I'll be sure to ask for clarification but not to question her technique.

You're right and I think between you and JB this is what I needed to hear. I'm going to do my best to calm down, relax, and enjoy each day and only worry when there's something legitimate to worry about.

Thanks again

[cz3ch]

Something to mention. I think I know where all this stems from. Originally when I filed Chapter 7 my lawyer had listed my expenses as being 300-400$ than I actually spend stating that those expenses fell within guidelines and could be used. When I saw this I immediately freaked and wanted my expenses to be actual and as close to reality as possible so I asked that she adjust them back which threw me into a Chapter 13.

I think the worry of having to change my expenses spun me loose and then the big F word (fraud) started to bubble in my brain. From what I've read especially with the forward looking approach being taken, the expenses are "projected" and can be subject to variance. Either way, I'm correcting my expenses, but I think this is what got my wheels spinning in the beginning.

Any thoughts or comments on this?

[Pjmax]

Cz3ch, I do understand your concerns, but I think you may be a little overboard in trying to avoid fraud and worrying about it, and too much can end up costing you.

Your attorney knows what is reasonable in your district. Here's a very simple example: my food expenses were high, my personal expenses very low; my attorney reduced the food and raised the personal. I figured out my food total by adding my supermarket debit charges. I did not break down how much of that went to shampoo or toothpaste. Listen to your attorney. If the trustee questions anything, your attorney will defend whatever is in question or make whatever amendment is needed.

As far as your C7 341 goes; I believe you said in another thread that your attorney already said you don't have to attend. At my 341, one of the names before me was called, one of the attorneys present said 'I believe that one is a conversion.' The trustee looked down for a second then said 'oh, yes,' and then called the next name. That is probably all that will happen, if anything.

[cz3ch]

Cz3ch, I do understand your concerns, but I think you may be a little overboard in trying to avoid fraud and worrying about it, and too much can end up costing you.

I don't disagree with you. I'm definitely worrying too much and it's affecting me greatly. I'm just trying to inform myself so that my nerves will settle.

Your attorney knows what is reasonable in your district. Here's a very simple example: my food expenses were high, my personal expenses very low; my attorney reduced the food and raised the personal. I figured out my food total by adding my supermarket debit charges. I did not break down how much of that went to shampoo or toothpaste. Listen to your attorney. If the trustee questions anything, your attorney will defend whatever is in question or make whatever amendment is needed.

Thanks for the example. When I originally gave her my numbers she bumped them up by about 300-400$. I told her I wanted it to reflect as accurate as possible so I asked her to change this which landed me in Chapter 13 as a result. Looking back I probably could have let the numbers fly since she said they were within reasonable allowances.

As far as your C7 341 goes; I believe you said in another thread that your attorney already said you don't have to attend. At my 341, one of the names before me was called, one of the attorneys present said 'I believe that one is a conversion.' The trustee looked down for a second then said 'oh, yes,' and then called the next name. That is probably all that will happen, if anything.

That was due to her not filing certain paperwork which caused the original meeting not to be commenced. The chapter 7 trustee continued the meeting to 12/6 in the event my case hasn't converted yet. You're probably right, I should just go into this Chapter 7 341 (if I have to) and let the chips fall where they may.

Thanks for your feedback and giving me a slap back to reality.