Question about UST involvement and high unsecured debt in CA

[90254bk]

I've read on the forums that unsecured debt over $100K often gets UST "notice." Was wondering if anyone had input on if that is the case in the Central CA District, where filings (and amounts) seem to be routinely high. Just FYI, my unsecured is about $138K, but haven't used cards in a year and have had many of them for 10-20 years. Used to have a high paying job, but lost it over a year ago and was unemployed for 6 months. Now have a job but Schedule I still less than Schedule J, about 10K below the median and no asset case.

Thanks. I read about people getting UST letters and appearances at 341s etc etc and it does all freak me out a little.

[justbroke]

The United States Trustee's (UST) job is to protect the integrity of the program. However, they can't actually scrutinize every single case. So, there are thresholds and indicators, for them, that lets them determine whether they should scrutinize or be interested in a particular case.

It is pretty consistent that unless it's for medical reasons, having over $100K in unsecured debt, will peak the UST's interest. Also, being over the median is definitely an indicator that the UST will be interested.

Since you're under the median, you may squeak by, but $138K in unsecured debt (credit cards) will probably draw some attention. There have been a few people on here where they never heard or saw the UST even being under the median and over $100K in unsecured debt, but they are in the minority.

I wouldn't get worried... it's just the UST's job. If your expenses are legitimate and allowed, then the UST generally will not bother you. Most people worry for nothing. UST letters are "normal" and it is quite normal for the UST to be at a 341 Meeting. It's not an indication that something is wrong -- although there could be. It's an indication that the UST is doing their due diligence.

[90254bk]

Thanks justbroke. I guess I shouldn't be worried, it's just the nature of the process. I think we all want everything to go as smoothly as possible, with "no news being good news," so UST involvement would be worrisome even if I am not hiding anything. All my expenses are well under what the IRS tables seem to allow, just $3700 or so monthly (including taxes, as I am a contract employee) for a married couple in LA, and slightly over our income.

[frogger]

There have been a few people on here where they never heard or saw the UST even being under the median and over $100K in unsecured debt, but they are in the minority.

I'm one of that minority, for I had well over 100k in unsecured debt. The trustee asked about it at the 341, and when I gave the answer, it was just "OK". No problem.

[90254bk]

Good to hear frogger. When I sit back and try to be rational about things, I'm pretty calm...I know I committed no fraud, I am under means, Sched I below Sched J, and no way I could pay my debt on my income - even at $500 positive DMI for 5 years I wouldn't even get to 25% of my unsecured debt, and my DMI is negative anway. I called my trustee's office this morning to verify what they need from me before my 341 (just my latest fed and state returns), and I've had no activity on PACER for anything but my initial filing. But still it's hard not to panic, thinking about if they dismiss me, or try to push me into a 13, or if I forgot to do something, etc etc.

[justbroke]

I was never asked at either 341 Meeting (Chapter 13 or Chapter 7) and no UST ever showed. Discharged $418K in unsecured debt. I'm also over the median, but I'm a non-consumer case, so that does affect it.

Hopefully, you don't show up on their radar since you're under the median.