Attorney surprised us

[treehugger1]

This conversation is interesting. When I first considered BK 13 as an option, legal counsel told me I needed to submit very few documents. He wanted copies of six months of paystubs, two years of taxes, and that was it. I asked about bank statements, etc. He said, "Nope." In terms of money in the bank, he said I didn't need to worry about it prior to filing. I got the impression that a big chunk of money showing up after I filed was more of a problem. I'm wondering if Oregon's $7500 exemption for wages/income in bank accounts has anything to do with his statement. Maybe other states also have large exemptions for cash in accounts. I should also point out that last August/September I would have been in a 100% to unsecured payback plan. Very interesting.

I'm still undecided on BK, but as always, I'm paying close attention to all the threads here. Cheers.

[treehugger1]

I'm trying to stay on topic here, and it appears a discusion of legal counsel is included. Attorneys can be very similar to those in the accounting professions. Some BK attorneys seem to be more of "bookkeepers" in that they simply know how to fill out all the schedules and forms, and they require vast records of information to fill in all the forms for their clients. Other BK attorneys seem to be more at the CPA level. They go far beyond the ability of "filling out forms." They know the local, state, and federal BK laws very well. They have worked within their districts for years and there seems to be mutual respect between he/she and the trustee. While some might think an attorney is not playing fair, others would argue that they are well within the "bounds" of the law and practice accordingly. As always, best to see several legal counsel representatives and get a feel for their experience.

[Granny]

Most attorney's would provide a better service to their clients if they would hire a CPA.

[qwertysue]

It also makes a difference if the attorney and trustee are familiar with each other.

At our 341, there were several attorneys that it was obvious that the trustee did not know. He asked "What's the name of the firm you are with" to more than one attorney.

Our attorney and trustee were familiar with each other and even had a few moments of friendly small talk. Later I googled both the trustee name and the atty name--they've done BK workshops together.

Oh, and the firm we went with has a CPA on staff.

.

[BrianBlade]

where does it say in my posts that he isn't requiring two years of income taxes? He is....but only 2 months of paystubs. I meant he never asks for them for the future, not the present. She knows she has to have at least 2 years, preferably 4 but then he will not ask after that.

We're not saying the attny might be planning to do is any thing unethical. A lot depends on the State's Exemptions. But drawing the Pay prior to filing is gonna boost the CMI for determination of the Plan payment. Plus, there's gonna be a lump sum payment that may need to be spent within a short period of time to get the cash on hand into your Court's acceptable level.

And the Trustee can't not require 2 years of income taxes. It's the Law. At the time of filing, the Debtor/Filer has to submit the most current 2 years of filed Income Tax returns. Even if the Trustee never looks at the taxes, the attny for the Filer still has to submit them. That's part of the New Law. And what ever copies the Local Trustee gets,.......... The UST's Office is gonna get the same thing.

What the Trustee chooses to look at post Confirmation is a whole different story. Some Trustees are like that. Once you're Confirmed, they don't wanna hear from you again, as long as the Payments come in like clockwork. But you've got to get to Confirmation. That's probably what the attny was referring to when he/she said the Trustee doesn't look at taxes. The attny meant down the road, after Confirmation.