Abusive filings

Recently the U.S. Attorney contacted me to ask why we had filed a chapter 7 bankruptcy for a client when the client might have funded a chapter 13 bankruptcy. My response was that my client was eligible for a chapter 7 bankruptcy and thus he filed one. He did not want a chapter 13 bankruptcy. However, I was apparently wrong in that philosophical assumption.Of course I am aware of 11 U.S.C. 707. The U.S. trustee can file a motion to have your chapter 7 filing converted to a chapter 13 or dismissed. The question is why they should be allowed to do this. Bankruptcy is a right enshrined in the constitution. Eligibility for a chapter 7 is a financial one. What business is it of the U.S. Trustee whether the client has such little expenses that he might be able to repay some of the money he earns to creditors for years? It strikes at the heart of what a bankruptcy is for. Bankruptcy represents an important safety valve in a capitalist society. It encourages people to take risks without the fear of being imprisoned for the remainder of their lives if they fail. Society benefits from people taking chances and succeeding. Society thus accepts that it won’t punish people for their failures and cripple the remainder of their life for that chance. The U.S. Trustee does not agree.When you file for bankruptcy, make sure you consult with a competent professional. There are many pitfalls that only a competent professional can assist with. It is often well worth the small fee.