Ch7 Presumption of Abuse Update
Posted: Wed Feb 06, 2013 3:41 pm
A few months ago I asked about taking ch7 Presumption of Abuse cases through
in the Central District as I only had experience dealing with the UST up in
the Eastern District prior to that. Steve Lever was kind enough to give me
his insight. Well, I wanted to give back to the list serve for those
unfamiliar or were also wondering about taking on a presumption of abuse
ch7, Section 707 cases. I filed a ch7 where the presumption arose based on
the prior 6 months of monthly income, but the debtor was laid off during the
month in which the bk case was filed. Due to exigent circumstances, the ch7
was necessary so waiting it out wasn't an option. Shortly after the case
was filed, the UST got in touch and asked for a declaration from the debtor
to make sure everything was above board. The 341 meeting came and went.
Section 704(b)(1) requires that the UST take some action no later than 10
days after the 341 meeting by filing a statement with the Court. In my
case, the UST filed a declination letter where the facts were pretty
straightforward and not open to a different interpretation. Per the Ng. v
Farmer Case, 447 BR 118 (9th Cir) we covered at the cdcbaa 7th Annual
Review, the UST seemed most concerned in confirming that there would not be
a change in income postpetition. Hope this helps someone out there.
Jeffrey Hsu, Esq. | JCH Law Firm
1031 S. Garfield Ave. | Alhambra, CA 91801
Phone & Fax: 626-999-5959
jhsu@jchfirm.com |
www.jchfirm.com
CONFIDENTIALITY NOTICE: This e-mail message is intended only for the person
or entity to which it is addressed. It may contain information protected by
the attorney-client privilege, work-product doctrine, or other privileges.
Any unauthorized review, use, disclosure or distribution is prohibited. If
you are not the intended recipient, please contact the sender by reply email
and destroy all copies of the original message. If you are the intended
recipient but do not wish to receive communications through this medium,
please so advise the sender immediately.
The post was migrated from Yahoo.