May 17, 2006
The following items were
discussed at the quarterly trustee training held in Salt Lake City
on May 17, 2006:
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 15th
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 15th day. In any case that is missing documents on the 15th
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.
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.
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.
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
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.