investments and intent.....

What is the name of your state? I'm semi-retired and make a small income,but "had' great credit. During the stock market boom 2 1/2 years ago I borrowed some money and invested in some companies and started to make money,so I borrowed more and invested and made more,so I borrowed more and more ,and before I could get out the market started to go bad. My investments starting falling so I listened to the stock experts and bought more to average down for the so called rally ,I kept borrowing and borrowing just to get even and get out, but it was like quicksand and I kept getting deeper and deeper in debt.I finally ran my limit on credit and started selling off my holdings to keep up the monthly payments , still hoping for a recovery to pay off everyone and get out,but that never happened, I kept selling and paying back and now I am busted I had to declare BK. (over 150k in dept.). My intent all along was to make money and come out with a profit but my investments like most everyone elses went down the drain.... My questions is: I filed for chapter 7 and the trustee asked for my last 2 years income taxes which I gave him. Now he sent a letter stating if I made such a small income how did I expect to pay off the debt?(understandable). I sent in the past 2 1/2 years of all the stock transactions ,all the statements ,every thing I did in the market. MY original intent was to invest, make money, pay off the creditors, and come out with a profit. Is this concidered fraud or substantial abuse. If the orignal intent was to make money, is this just an investment gone sour and BK is the only way out. I could never pay the money back? Do you see any problems? My lawyer say it should be ok but is he just saying it ? My meeting is July 19.. TIA

[Ladynred]

It would be considered fraud if you had done all that investing, borrowing and losing, while at the same time intending to get out of any hole you made by filing for banktrupcty. Since your intent was to make money and stay afloat, and bankruptcy was the last resort instead of your goal, then I don't see how it could be considered fraud.That's probably why your lawyer told you it would be ok.

You are far from the only one who went thru investment meat grinder that way, but its the Trustee's job to be sure you weren't abusing the system or intending fraud all along.