310.376.9865
From a Southern California Bankruptcy Attorney
A Visit From the OUST: When ever a staff member of the Office United States Trustee (OUST) attends your 341a hearing, something is amiss. Sometimes, it is just a matter of clarifying the numbers or information on your bankruptcy petition.
Other times the OUST is at the 341a hearing to assure there is no abuse of the system. For example, a debtor took out an unsecured loan of $80,000 in November 2009, and then filed bankruptcy in April 2010. To further complicate matters, the debtor used the funds to repay his friend $20,000, his Mom $10,000, and then he paid assorted bills.
There are actually 3 problems:
- 1. The OUST position is probably, ” Hey, you just borrowed $80,000 four months ago, why are you filing bankruptcy?”
- 2. The trustee will want $30,000 that was paid to insiders, to be returned, so he can make an equal distribution to all of the creditors.
- 3. The creditor will probably be examining the facts to determine if at the time of borrowing the debtor ever had any intention of repaying the loan.
A Debt Relief Agency
- Law Offices MJ Mann Bankruptcy Attorney
- 2706 Artesia Blvd, Suite BK
- Redondo Beach, CA 90278
- 310.376.9865
