Just when it can't get any worse!

[deedee1]

What is the name of your state?What is the name of your state? PA

My husband and I just got subpoenas in his Chapter 7 bankruptcy filing. He had credit card debt only with no assets of his own, we own everything jointly. The lawyer said that this should be cut and dry! We already have a motion to dismiss that his lawyer is fighting -- the trustee keeps quoting the wrong figures. My husband does not make as much money as they say. What's going on??? What will happen in court?

 

[InsulinRules]

DeeDee, assuming you haven't made a mistake on something (which is fixable by your attorney), it sounds like you have a hardcase for a trustee.

Some trustees get a real power trip. Here's some tips

1) Make your attorney work for that retainer. The key here is your attorney will (hopefully) only have this one case with you, but he might be working with this trustee on other cases for the next 20 years. Sometimes YOUR attorney does not object as much as he could....(no rockee boatee)
2)Trustees have ONE job: to ensure that the ESTATE is properly handled. That means inventory, examination and liquidation if aproporiate. While the trustee can (in layman's terms) protest your discharge with proof, the TRUSTEE CANNOT abuse you, call you names, or treat you like a pile of poop. If the trustee is doing these things, your attorney should be right there objecting.

Trustees can ask polite questions and YOU can ask them to clarify their questions.
Bad Question, Bad Trustee:
Trustee "Explain yourself and these expenses!"
You: "Can you be more specific? Precisely which expense are you asking about?"
Trusteenasty) "All of them!"
You: "Okay, let's start at the top."
Just be cool and calm and explain.

If things get REALLY bad and he/she/it says something like this:
Trustee: "Are you too stupid to remember what you lied about?"
You: "Please conduct yourself with the decorum with US Trustee requires and treat me with the respect I deserve. I'm not a criminal on trial." and then tell your lawyer to find his voice.

Most trustees are actually quite normal.
Good Question:
Trustee: "Mrs. X, I've got a question about your living expenses; Medical seems high, and what goes into Misc.?"
YOU: Calmly explain what medical is, and what misc. is.

Don't forget that trustees also get weasel petitioneers that list things like "Misc $1000 per month", and then can't explain what misc. is.

I personally believe most people get in trouble with their trustees simply because of expenses look so kooky many times. People constantly estimate rather than simply looking back over their records and seeing how they spent their money.

I had one client list $1000 for the house payment when it was only $705. I really don't believe they were trying to mislead. If you asked them what the house payment was, they said "$1000 a month" but the reality was alittle different. Guess they were just to lazy to verify the numbers.

 

[deedee1]

Thanks for your comments! I truly appreciate an outsider's view on this. Since I posted this, my husband spoke with his lawyer. The lawyer said that the trustee is "fishing" for something. Our home is worth $200,000 and we owe $95,000, but in PA they can't do anything about the equity because we both own it and have our names on the house and the mortgage. The trustee feels I should be able to pick up more expenses so my husband can file Chapter 13. I pay virtually all the bills -- utilities, maintenance, etc. I take care of myself and OUR son. My husband was laid off 4 years ago and took a much lesser job. He made some foolish mistakes to get into debt, I agree. I believe they don't understand why I won't refinance the house so my husband can pay off his credit card debt or go Chapter 13. If I don't legally have to, why would I put myself and my son at risk? The deposition is next Wednesday. They asked for the following documents:

Mortgage information -- my husband pays half of the principal, finance charges, and escrow. I pay the other half and elect to pay a little extra.

Utilities -- I pay all the utilities. He only has a phone card that he buys himself.

Home Maintenance -- I pay 95% of them.

Charity -- He gives less than 1% of his pay

Recreation -- He buys a fishing and hunting license. Other than that, maybe an occasional rental film.

He does put 4% of his pay (not much at all) into a 401K because his employer matches. Actually, I agreed to pick up what little he paid for our son so that he could get this -- sounds like a big mistake on my part now. But, the lawyer said to leave that alone and don't touch it. In fact, he stated that the trustee doesn't have a problem with my husband, but a problem with our equity in our house.
What are my husband's chances next week? The motion to dismiss is scheduled for Sept. 20.