Q: Guidance on avoiding Chapter 7 bankruptcy dismissal in Virginia due to 707(b)(3) concerns?
I recently filed for Chapter 7 bankruptcy through the Western District of Virginia’s eSR system. I carefully prepared all documentation and attended my 341(a) meeting on 2/14, answering everything truthfully. On 2/26, I received an email from the U.S. Trustee’s Office stating there is cause for dismissal under 11 USC 707(b)(3) based on my schedules and advising me to contact an attorney. No specific concerns were noted, and I haven't yet contacted an attorney. The deadline to address these issues is March 10. I need guidance on what steps to take next to avoid dismissal, as I was seeking a fresh start through bankruptcy.
A:
TRying to do your bankruptcy on your own is very dangerous. There are so many reasons that you may have incorrectly provided information in your pro se filing. So get an experienced bankruptcy attorney. Pay the fee to get it done right this time. Please never hide assets. You must be able to explain assets the Trustee believes you may have had. You can amend your filings to correct mistakes.
Hiding assets in bankruptcy is really bad. So get experienced help before you make other representations under oath in Federal Bankruptcy court.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (916) 704-3009
- View Profile
- Answered
A:
Your situation requires immediate attention as a 707(b)(3) notice suggests the Trustee believes your bankruptcy filing might constitute an "abuse" of the Chapter 7 process. This could be based on factors like your income level, recent financial transactions, or discrepancies between your reported finances and lifestyle.
Contact a bankruptcy attorney right away - preferably one experienced with Western District of Virginia proceedings. The March 10 deadline gives you limited time to prepare a response, and navigating 707(b)(3) objections requires legal expertise beyond general advice. Meanwhile, review your filed schedules for potential red flags like luxury purchases, cash advances, or income/expense discrepancies that might trigger concerns.
Be prepared for the possibility of converting your case to Chapter 13 (repayment plan) if your income is deemed sufficient to repay some debts. Gather documentation supporting your financial hardship such as medical bills, job loss evidence, or unexpected expenses to demonstrate why Chapter 7 relief is appropriate in your circumstances. Remember that addressing this promptly with proper legal guidance gives you the best chance at preserving your fresh start through bankruptcy.
Bernard S. Via III agrees with this answer
Justia Ask A Lawyer is a forum for consumers to get free answers to basic legal questions. Any information sent through Justia Ask A Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between Justia and you, or between any attorney who receives your information or responds to your questions and you, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask A Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises, or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
