341 Meeting over, what a relief....

[Aguyintrouble]

What is the name of your state? New Hampshire

Hey all.

I'm relieved - mostly at least. Just got home from our 341 hearing. I'd almost be inclined to say that it was a joke, or a formality to a point. We sat in the room for about a half an hour just listening to what the trustee (who seemed more like a concerned father than a vulture!) had to say and the quesons he asked, so we had prepared good answers for them. We even left the room at one point (mostly to see if our attorney showed up yet - which he did) and discussed who'd answer for the two of us.

We didn't even get asked the standard set of questions - mainly he asked for our names, id's, and if we'd listed all debts and assets on the petition.

He then thumbed through the paperwork - and asked us some specific quesitions which I'll detail below:

1 - Is there any chance your house is worth more than you claim here? We answered no, we had gotten a comparitive market analysis on the house for the petition, and that was the amount given to us.

2 - He asked if we had taken any advances out on the credit cards in the last 90 days. Answer - no.

3 - He asked about a mobile home that was sold last march that we had partial ownership interest in. We told him exactly what the funds were used for, to the penny, and he stopped asking about it. Our lawyer answered partially here too - stating that it was a bona fide sale, and that we didn't sell it to anyone related.

4 - He asked about payments we made to a credit card counseling service - and we've been asked to provide information on if the money was sent to them already. We know that it was, so we just need to get a statement to him to that effect.

After that - he asked if anyone had any questions for us - and to my shock and amazement - no one from any of our credit cards came forward.

He then said thank you, and I noted him mark down on his notes 7-NA - which I assume means that we're set for a no asset case!

We met with our attorney for about 5 minutes afterwards, and he said that we should see our discharge in 3-4 months.

I think I'm partially in disbelief - but at this point I think we're home free. At least from the huge burden of debt we had...

Many thanks to all on this board - especially Lady in Red for advice and such during the whole process.

 

[SherryCherry]

FL

I'm glad your meeting went well. Ours was last Thursday, and like you I was a nervous wreak! I am still not sure how it went. My attorney seemed possitive, but I still have my doubts. Here's why.... The US Trustee showed up for our 341 Meeting. I had no idea what the implication was at first but I knew it was bad. She was very professional and asked why I have been out of work for so long (I was a travel agent... that should tell you quite a bit) then she asked why my husband was still contributing to his 401K. We answered to the best of our ablity, but I have to tell you I was shaking and ready to pass out. She seemed satisfied with our answers, but can she still deny our chapter 7?????
Also, we have a car loan at the credit union where we are defaulting on a credit card. It appears they are trying to cross collateralize them. I haven't been late on a car payment, and the amount I owe is more than the value. I only stopped paying on that credit card on the advice of my attorney when we decided to go BK.
I still have so many questions and this forum has been enormously helpful. Both my husband and I have kept this as private as possible and it's great to be able to read post from others just as scared and humiliated as we are!

 

[rockobuster]

Did people from the credit card companies actually show up to your 341 meeting?

Did you happen to hear of anyone who had made credit card charges within the 90 days of filing?

 

[Aguyintrouble]

Well, sorta...

Rockobuster -

When we arrived at the meeting, we entered the room at the tail end of another hearing where there was a creditor there. From what I gathered, she represented some creditor on that case.

There was some lawyer to lawyer chat happening, but I didn't hear the whole conversation. It ended with the lawyer for the people filing for bankruptcy saying something like "You could have prevented all this by contacting me" - and there was something about a question of if they filed a relief from stay.

I'm sorry I didn't hear more on that one for you.

As I understand it - if you used the cards in the last 90 days prior to filing, it it was for necessary things you may not have an issue, but if it wasn't - you may end up not having that debt discharged. It may not kill your own filing though...

I'm not an attorney - so I'd suggest you speak with a few if you're in that situation.

Good luck!

 

[rockobuster]

Does anyone know, or have had the experience, of having used credit cards (with cash advance checks deposited into my checking account) within the 60 days prior to filing chapter 7?

If so, did the credit card company object to the discharge of the amount that you used, or for the entire amount owing on the credit card?

I have three different credit cards that I used within the 60 days, and if there is an objection on all three of them, I didn't know if they could object to the total amount owed on all three cards, or just the amount I charged within the 60 days prior to filing. Or, if the amounts not charged within the 60 days are dischargeable?

 

[Ladynred]

If you charge up your cards w/in 60 days of filing, it is possible a creditor will object to the discharge of THOSE CHARGES - not the whole thing.

There is one person who posted here recently, jadedone, who has been challenged by Chase for just this thing, charges made w/in 60 days of filing. Chase has filed an Adversary Proceeding and wants the 'recent' charges declareed non-dischargeable by the court. Now, we're not talking about luxury purchases here, we're talking about gas, groceries, dr's visits, etc. This type of fraud charge is NOT that easy for them to prove, but it does leave YOU with the burden of proving you did NOT intentionally commit fraud.

 

[jadedone24]

ahem I am here now lol

I read your posts thought I would reply. I was like you guys, after my 341 thought everything was simple and I felt soooo good after the meeting. Trouble didn't come till a month later. I filed in November, and Chase contested charges in August, they are basically wanting $1,000 that was charged in that month as Ladynred said, for dr. bills, gas, wal-mart etc., I didn't think there would be a problem since they weren'y "luxury" items, and they obviously knew this by my charge statement. My lawyer never (I guess lol) seen that there would be a problem either, I waited till Nov. to file and still am being challenged for these basic what I would consider essentials. I am awaiting hearing results before I sign an agreement to pay back $50 a month until the $1,000 is all paid back. I had to undergo a 2004 exam after the 341 meeting--now, I am waiting to see if the U.S. Trustee says I get a discharge, denial or have to go 13. Hope things work out for you guys and that the 341 really is the end of your bk. I thought it would be simple too!

 

[Choices2005]

2004 Exam?

You said you had to undergo a 2004 exam. . .(last post of this thread) What exactly is that?? I have my 341 tomorrow and I'm a little nervous. I hope none of the creditors contest. . .

 

[jadedone24]

rule 2004 exam

A "2004 exam" refers to Rule 2004 of the Federal Rules of Bankruptcy Procedure, and that rule says that if anyone believes that an examination of records, of evidence, of you personally (as in a deposition), etc., would be helpful to determine your finances, then that person may file a motion in the bankruptcy court to get that examination allowed. In my case the United States Trustee filed the motion, not actual creditors--although I did have an adversary proceeding filed by Chase--who knows if they are realted. But not everyone who files has to go through a exam. I had never heard of it until it happened to me, and I knew and talked to some folks who had filed. Basically me, my husband and my attny. met with the US Trustee and their lawyer. They swore me in and recorded everything just like at the 341. They went into detailed questions about my filing, wanted records of my bank account for the past year before I filed and income tax returns. I didn't have to tell them what my charges were, they already knew! I just had to give some account for them. Just a little fyi for anyone filing or even in financial hardships--keep everything--records will help. I was able to show my records of payments--letters I wrote to creditors etc. to try to show I was working with them. I am pretty sure they were looking for hidden assets or proof of charge ups. As I said not everyone has to undergo a exam--but if some creditor or the trustee is suspicious, you may have to. Hope this helps!