Chapter 7 Gone Horribly Wrong....The Sequel

[SallyX]

What is the name of your state? FL
About a week ago I posted this message regarding my Chapter 7 filing and the ensuing mess. The thread is here:
https://forum.freeadvice.com/showthread.php?threadid=163787
Well, I'm here to report how it all turned out. Surprisingly well, actually.
I attended the 2004 Examination pro se, simply due to finances. The attorney who originally represented me at the 341 wanted an additional $1,000. It was pay him or pay my mortgage. I opted for the latter and went in solo.
Turns out it was the correct decision. The attorney who was questioning me was to the point and professional. He stated he was simply looking for assets which the Trustee had suspicions I was hiding.
A few questions, some honest answers, about thirty minutes. He abruptly said, "That's all I need. I'm granting you your discharge." He seemed annoyed at the Trustee for wasting his time.
So, I guess it is all over now except the wait.....right???

 

[Ladynred]

Right !!! Congrats Takes courage to face that pro se.. good for you !!

Honesty pays off....

 

[SallyX]

Takes courage to face that pro se..
.....and a limited budget for attorney's fees
Any idea what the waiting period is now? And what other possbile hurdles can arise during this time?

 

[rke55]

2004 Meeting

What were some of the questions the attorney asked you in your 2004 meeting?? What gave the trustee the feeling that you were hiding assets? I might have to attend one myself and was wondering.

Thanks.

 

[SallyX]

The Trustee was highly suspicious, I believe, because I have been self employed for about twelve years. My filing was not your typical cookie cutter Chapter 7.
In addition, I am in real estate and have a couple of LLC's formed for my business. So, in her estimation there had to be more assets than I was letting on. There was no factual basis for her suspicions other than her "hunch".
At the 2004, her attorney was quite the opposite. He was only interested in the facts. He asked specifics about my business, my properties, the LLC's, bank accounts, etc. Nothing I wasn't expecting and nothing that couldn't be answered truthfully.
As he said right at the beginning, he was only searching for assets. When he quickly determined there weren't any that I had not already disclosed, he abruptly said, "Thank you. I have no further questions. I'm giving you your discharge."

 

[rke55]

The trustee never said that they'd send an appraiser to your house or anything like that, did he?? Did the trustee question your bank accounts (what was this check for, etc??).

 

[SallyX]

No mention of an appraiser was ever made by either the Trustee at the 341, or the attorney at the 2004. In fact, the Trustee said very little and had few specific questions. She just mumbled that she had "some problems" with my filing. I walked out of the 341 knowing it wasn't over. Sure enough, one month later I received notice in the mail that she was asking the court for a thirty day extension for further review. About three weeks after that I received another notice requiring my appearance at the 2004 Examination in one week.
The attorney had specific questions about bank accounts, where a specific deposit came from, where a check went, etc. I provided truthful and detailed answers to his questions and he seemed satisfied.

 

[rke55]

SallyX - Sorry for so many questions but I'm very interested as I'll be going through this process soon. What type of deposit questions did the attorney have (how much of a deposit got their attention, how much of a check got their attention?)

My parents lent me money to pay tuition and that will show up on my bank statement as far as a deposit. And then the checks that went out to pay tuition. Did they examine each check??

 

[SallyX]

The attorney had a few questions regarding a deposit from the proceeds from the sale of a property I owned. The sale was two years ago. I had all the paperwork involved in that sale and he was quickly satisfied.
He had a few additional questions regarding a few large checks I wrote from my checking account last summer. I explained what they were. Again, he was satisfied and quickly moved on.
I did not provide any check stubs, nor did he ask for any.

 

[rke55]

Not to get too nosey but I got a $3,800 loan from my parents and wrote two tuition checks - one for $2,000 & the other for $1,150. Do you think that they will have a problem with me getting a loan from family?? Maybe I'm worrying too much over this stuff!!

 

[SallyX]

That's a question I don't know the answer to. Perhaps someone else can come along and help. I think an accurate answer requires details regarding your financial situation and your filing. Run all this by an attorney.

 

[rke55]

But I guess my question to you is the checks that I mentioned aren't real large checks and shouldn't be a problem - especially since they were for tuition. Had I written $5,000 - $10,000 checks then I see the question. I don't see that this will be a problem.

 

[Ladynred]

Those types of payments should NOT be a problem.. the school isn't a creditor and the money was for educational benefit. It should not be a problem, but be certain your lawyer knows all the details.