Trustee says I owe money I don't have? :(

[SMinGA]

True overall - but when it comes to tax returns any bk atty should confirm that returns for years ending prior to filing BK have been filed with the IRS/state and ask for copies. So should be obvious if a return w/ refund on its way was filed recently or needs to be filed.

I do wish all attorneys asked a bizzilion questions and considered every possible scenario. Most of the time, it's that the client didn't disclose things to the attorney and not that the attorney didn't ask the right question.

[justbroke]

True.

[Lurker99]

Thanks for the replies everyone!

My lawyer IS lazy (OK, to be fair, his office is lazy, and he's just never there). I paid him in full and supplied his office with ALL of the requested paperwork in early November, but my case was not filed with the court until Feb, 19th.

I wish I would have found this website sooner, but I figured i was paying a professional for a reason and trusted that he knew what was going on. I've since learned I'm not the only client this lawyer has been "lazy" with.

Being that it was tax time when my case was filed you would think his office would have told me something, but my first indication that I may owe money to the trustee was in my 341 hearing.

[newbie2]

Thanks for the replies everyone!

My lawyer IS lazy (OK, to be fair, his office is lazy, and he's just never there). I paid him in full and supplied his office with ALL of the requested paperwork in early November, but my case was not filed with the court until Feb, 19th.

I wish I would have found this website sooner, but I figured i was paying a professional for a reason and trusted that he knew what was going on. I've since learned I'm not the only client this lawyer has been "lazy" with.

Being that it was tax time when my case was filed you would think his office would have told me something, but my first indication that I may owe money to the trustee was in my 341 hearing.

It could also be that because of the car that there is an issue with, that your available exemptions were all used up. However, if this was the case the attorney should have explained this to you and let you know that the tax refund couldn't be exempted.

[Mi Bankruptcy]

I paid 750.00 for my attorney. He told me that they didn't take tax returns. I made him redo the paper work and exempt my "anticipated tax return". This was money I expected back from the government and therefore made it known it was coming when I filed. In all fairness the trustee should have told you that you need to send him\her the money at your 341 hearing

[justbroke]

Unfortunately this happens all the time. It's unfortunate that you learned this the hard way. There are a million things that go wrong in a million cases. With the number of Chapter 7 Panel Trustees, some of it is just the luck of the draw!

[keptdigging]

As much as I want to defend the attorneys (being a bk atty is actually a terrible business--you're clients are broke, there isn't much repeat business, and few people are going to shout out to all their friends that they know a wonderful bk atty), tax return on the way seems pretty basic.

Certainly every trustee is going to look for it--the only easier money for the trustee is cash already in the bank. Law and value are clear, no cost to liquidate it...

[Lurker99]

As much as I want to defend the attorneys (being a bk atty is actually a terrible business--you're clients are broke, there isn't much repeat business, and few people are going to shout out to all their friends that they know a wonderful bk atty), tax return on the way seems pretty basic.

Certainly every trustee is going to look for it--the only easier money for the trustee is cash already in the bank. Law and value are clear, no cost to liquidate it...

Yup live and learn. This wouldn't have been an issue had they filed in Nov when they were supposed to, or even in Dec. Or if they mentioned to me that any money I'd get back must be paid to the trustee. I would have had my ex do our taxes then and just give me my portion of the cash.

I'll figure it out and move on with life....just a bump in the road.