Aaron C Amore US Bankruptcy Trustee Information

Aaron C Amore US Bankruptcy Trustee Information Information for Attorneys and Debtors related to Bankruptcy Meeting of Creditor and Hearings for Bankruptcy Trustee Aaron C. Amore


April 7, 2020
Page 1 of 1
The federal government will soon begin issuing recovery rebates to qualified individuals under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 (the “Act”). The rebates total at most $1,200 per individual or $2,400 per married couple filing jointly, with an additional $500 paid for each qualifying child under the age of 17. The rebates are payable in full to qualifying individuals earning less than $75,000, $150,000 per married couple filing jointly, or $112,500 for heads of household, and decrease by 5 percent of income exceeding those thresholds until completely phased out. Two bankruptcy questions have arisen about whether the rebates: (1) should be included in the calculation of current monthly income or projected disposable income; and (2) are property of the bankruptcy estate.
The Act explicitly answers the first question. Under Sec. 1113(b)(1) of the Act, which amends 11 U.S.C. §§ 101(10A)(B)(ii) and 1325(b)(2), “payments made under Federal law relating to the national emergency declared by the President under the National Emergencies Act (50 U.S.C. § 1601 et seq.) with respect to the coronavirus disease 2019 (COVID-19)” are excluded from the statutory definitions of current monthly income and disposable income. Accordingly, recovery rebates received within six months before the filing of the petition should not be included in calculating a debtor’s currently monthly income in a chapter 7 or 13 case, and further should be excluded from projected disposable income available to pay creditors through a chapter 13 plan.
The Act is silent as to whether the recovery rebate is property of the estate. In chapter 7 cases, the “property of the estate” issue will only arise in cases filed after March 27, 2020, the effective date of the Act. Regardless of whether the rebate is property of the estate, the United States Trustee expects that it is highly unlikely that the trustee would administer the payment after consideration of all relevant circumstances, including: the modest amount of the recovery rebate; the applicability of state and federal exemptions; any interest of a non-debtor spouse in the recovery rebate; the cost to the estate of recovering and administering the recovery rebate, including litigation with debtors who may seek a judicial determination; and the extent to which recovering the recovery rebate will enable creditors to receive a meaningful distribution.
In rare chapter 13 cases filed on or after March 27, 2020, the recovery rebate may be relevant to the confirmation standard contained in 11 U.S.C. § 1325(a)(4). For chapter 13 cases filed before March 27, 2020, the recovery rebate is excluded from that analysis because it would not have been available for payment to creditors in a chapter 7 case.
Trustees are directed to notify the United States Trustee prior to taking any action to recover recovery rebates or objecting to a chapter 13 plan based on the treatment of recovery rebates.


Collection Scams- Beware.
Recently made aware of debt collection scams for debtors in bankruptcy. Scam call made to debtor alleging that he/she needs to pay a debt owed to a real creditors who was included in the bankruptcy case. Caller tells debtor they owe a specific amount (taken from their bankruptcy schedules) and they must pay the amount or face legal action.

Obtain as much information as possible especially the telephone number. Report such calls to your attorney and the US. Trustee.


341 hearing questions/ topics covered.


People often ask their attorney, "what kinds of questions is the Trustee going to ask? Here are the required areas and questions that will be covered in the normal 341 hearing:


On April 1, 2016, certain dollar amounts are being adjusted in the Bankruptcy Code, which will cause changes to the below Official Forms. The next adjustment is 4/01/2019.

1. Form 106C – Property You Claim as Exempt. “Are you claiming a
homestead exemption of more than $160,375?”

2. Form 107 – Your Statement of Financial Affairs for Individuals
Filing for Bankruptcy. “During the 90 days before you filed for
bankruptcy, did you pay any creditor a total of $6,425 or more?

3. Form 201 – Voluntary Petition for Non-Individuals. “Debtor’s
aggregate noncontingent liquidated debts (excluding debts owed to
insiders or affiliates) are less than $2,566,050”

4. Form 207 – Statement of Financial Affairs for Non-Individuals
Filing for Bankruptcy. “List payments or transfers - including
expense reimbursements - to any creditor, other than regular employee
compensation, within 90 days before filing this case unless the
aggregate value of all property transferred to that creditor is less
than $6,425.”

5. Form 410 – Proof of Claim. “Up to $2,850 of deposits toward
purchase, lease, or rental of property or services for personal,
family, or household use. 11 U.S.C. § 507(a)(7).”

6 & 7. Form 122A-2 – Chapter 7 Means Test Calculation & Form 122C-2 –
Chapter 13 Calculation of Your Disposable Income. “The monthly
expenses (not more than $160.42 per child) that you pay for your
dependent children who are younger than 18 years old to attend a
private or public elementary or secondary school.”

Presumptions of Abuse on Form 122A-2.
The line 39d is less than $7,700. On the top of page 1 of this form,
check box 1, There is no presumption of abuse. Go to Part 5.

The line 39d is more than $12,850. On the top of page 1 of this form,
check box 2, There is a presumption of abuse. You may fill out Part 4
if you claim special circumstances. Then go to Part 5.

The line 39d is at least $7,700, but not more than $12,850. Go to
line 41.


Courthouse opens at 9am. You cannot enter before 9am, even to wait.


Courthouse- 100 W. King Street
Martinsburg, WV


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