Paperwork requested by trustee - normal?

[pikaroth]

I won't lie, it's items like this that scare me. I mean in that what exactly is the trustee looking for on any statements? I have not been asked for credit card statements, but as 747LUVR said, I was also using mine (and making my payments on them) up until I decided on BK, and when I did, it was about four months of non-use before I filed. Made no extravagant or large purchases, the largest was a rather large car servicing bill which, going back to my first post ever in these forums, was THE reason I decided on BK. It was that moment I realized I couldn't do it anymore.

Nevertheless, no CC requests, just bank statements on my end, and that, too, I wonder: what will she be looking for? Ever since I decided on BK, for example, I HAVE been spending more simply because I actually have money to both save and spend. Once the CC payments went away, I had, heaven forbid, an income! Still, my attorney has told me more than once, as have people here, that it's a non-issue. I'm below the median income, no assets, all CC debt, etc. Hope springs eternal!

[SunshineGal]

Most likely the trustee will be looking for any large deposits or withdrawls or preferential payments to creditors. They may also notice and ask about any large purchases.

Don't let it stress you out...really....the documents she requested are required for a 7 in the FL middle district.

[tobee43]

SG is so right...and actually, once the trustee's office got our petition we were contacted via email by their office for numerous questions and some additional documents....personally, i didn't know what to think until i went to our 341...and my opinion was ...and i can't believe this...but it appeared to me it was the courts attempt at being more expedious....can you believe?? what a waste of time for us if we would have had to had gone to that 341 and then asked......then go home...submit......wait and wait....etc.....this was it went fast and easy and all important or questionable situation were resolved.

however, we were still asked the basic questions and a few more to boot.

[Unibrow]

It's rough in FL. Here in CA (central): the attys I spoke to said it's not required unless it's a special case where they think you're up to something. All I needed: last year's tax returns, 2 mth checks, and most current cc statement to list creditors and amount. I will be filing soon, so let see what happens. Good luck to you.

[discouraged]

Wow - here in MN my attorney wanted 4 years taxes (others wanted 2), 6 months bank & pay statements - I gave him a full year as I am on unemployment but had worked temporary for 31/2 months. Wanted to make sure it was understood that I was not working and that position was temporary.

[pikaroth]

Sounds like it truly does differ from not just state to state but sometimes just different areas within the same state! Either way, as I said, all of the info that my attorney said the trustee wanted is now in their hands (should have arrived today), and that will be that.

Another quick question: while I know I could, and probably will, ask my attorney this, it's now 2:30am Friday night/Saturday morning, so I am going to ask here, but my attorney SHOULD be looking over everything, even the bank statements they just asked for, correct? Trust me (please trust me! lol), I have nothing to hide, nothing whatsoever, but at the same time, I don't want to get to my 341 and have the trustee suddenly bring up some random-something-or-other on a bank statement and leave me holding my jaw. The attorney should looking it over long before the 341 to ensure everything is in order and all that, right? My lawyer of course will be at the hearing with me, but as I said before, these past few days have suddenly and out of nowhere just brought my nerves back from back when I, say, stopped paying my CCs. It's just an up and down process, I suppose.

[tobee43]

Wow - here in MN my attorney wanted 4 years taxes (others wanted 2), 6 months bank & pay statements - I gave him a full year as I am on unemployment but had worked temporary for 31/2 months. Wanted to make sure it was understood that I was not working and that position was temporary.

i think also it may depends on your life!! i mean ...for you i'm glad they are going back 4 years for the returns...because they will see how you lost income for REAL...

however, odd...now usually i only keep my records for 3 years.....(for audits that is)......as it use to be 7 years......so it is a bit odd..since that "3" year rule was actually set by the irs...however, there are exceptions as to why and what to keep...for that just in case situation..

" What do we do with all those old income tax return copies and records that we have? The definitive answer is – it depends. If you are one of those folks that never throws anything out and have tax returns back to 1950, here is the criteria for determining what to keep.



The biggest fear is that as soon as you throw any of your records out, you will be required to provide them to the IRS. The good news is that there are certain protective rules that will guard you against an old assessment or an untimely audit by the IRS. These rules are known as the statute of limitations. The statute of limitations limits the number of years during which the IRS can audit your tax returns or require you to provide records. Once the statute of limitations expires for a certain year the IRS can’t go after you for additional taxes. Of course you can’t go after them for refunds either.



"For audits and assessments the general rule is that there is a three year statute of limitations. The time runs from the date you file your return. If you file prior to the due date the time runs from the due date. For refund claims it’s the later of three years or two years from the date you paid the tax.



As you have come to expect from Uncle Sam there are some exceptions. If you don’t report all of your income and the amount is understated by more than 25% of the amount shown on the return filed, the statute is extended to six years. If you claim a loss for a worthless security the time frame for identifying the loss is stretched to seven years during which you can claim the loss.



However, you can’t hide behind this protection if you are not following the rules. If you file a fraudulent return or fail to file at all the statute of limitations period never starts to run; the IRS can get you at any time.



There are other statute of limitation periods, too. For example, there is a ten year statute for collections of taxes assessed, and payroll tax returns have their own rule. For payroll tax returns the rule is three years from the April 15th of the year after they are due or the received date, whichever is later.



Property records included in your tax returns should be maintained for the statute of limitations period following the disposal of the asset for tax purposes. If there is an exchange of property that period would include the disposition of the exchanged property.



So, you ask, “what does all that mean?” For the average taxpayer seven years should be a sufficient holding period for keeping income tax records. But, before you throw any records out, you should consider other needs such as insurance requirements or proof to creditors in addition to the IRS requirements."



You can trash, shred, or make papier-mâché but you don’t have to keep those records forever.


LOL!!! except poor discouraged!!! (just kidding...but it's odd since 3 years is in fact the statue with the exception of those reasons listed above).