May 17, 2006

 

The following items were discussed at the quarterly trustee training held in Salt Lake City on May 17, 2006:

 

Deficient Filings

 

It appears that approximately 53% of the cases currently filed as deficient in some way or other.  It should be noted that this includes quick files, so no accurate statistics are actually available.  The OUST estimates that at least 25% are deficient on the 15^th day after filing.  The OUST is currently reviewing every case that is filed for errors that would allow them to file a motion to dismiss.  No more grace period to learn the law.

 

To solve this problem the OUST is taking a two pronged approach.  First, within a day or two after filing, a motion to dismiss will be filed in any case that is not complete.  The hearing will be scheduled for 15 + 3 days later, so the hearing takes place after the 15^th day.  In any case that is missing documents on the 15^th day (even if supplied prior to the hearing, but after that date) the OUST will ask for dismissal of the case.  Second, trustees are being asked to file motions to dismiss in any case where the tax returns have not been provided at least 7 days prior to the 341 hearing (even if provided at the hearing).  Trustees are also being asked to continue the 341 hearing in every case where documents have not been timely filed (even if the documents are provided at the hearing).  This is a not so subtle “stick” to encourage compliance with the requirements of the code and rules.

 

A new deficient filings form has been prepared and may be accessed by clicking forms on the left hand side.  The new trustee packet form may be found in the same location.

 

Domestic Support Obligations

 

Remember that a Domestic Support Obligation includes “ongoing” alimony, support, medical, childcare, etc.  In each case the debtor must bring with them to the 341 hearing a completed Domestic Support Obligation Questionnaire.

 

A new Domestic Support Obligation Questionnaire has been prepared and may be accessed by clicking forms on the left hand side.

 

Form 22

           

The OUST is concerned that many attorney are not completing the Means Test properly.  They have prepared a list of the most common issues.  This form is to be made available at the first meeting of creditors.  It may be accessed by clicking forms on the left hand side.  You may also access portions of a power point presentation given to the trustees at the same place.

 

Form 23

 

Problems are continuing to occur in that debtors are not filing the Form 23 and the Certificate of Financial Education.  As a result, a form has been prepared that Trustees are to supply to debtors at the 341 Hearing.  A copy may be accessed by clicking forms on the left hand side.  Be aware that Motions to Extend the time for filing may require a Motion to Reopen and will not be granted except for cause.  Judge Boulden has indicated that one free motion may be allowed if counsel did not know of the requirement.  However, after that “cause” will be almost impossible to prove.  Judge Clark and Thurman appear to be taking a more lenient case by case approach.

 

Tax Refunds

 

Trustees are being requested to adopt a procedure that was used in Wyoming last year.  Beginning with cases filed in July, trustees kept the cases open to collect tax refunds.  At the end of December or the beginning of January the trustees forwarded a form to the IRS that resulted in the interception of the debtors entire tax return.