Lawyer wants to under report debt

[nohope]

Lawyer keeps telling me not to worry about the "exact" amount of money I owe to each creditor yet they've indicated numbers much lower than what the actual debt is? Why would they do that? This is a chapter 7 asset case with some debt that is non-dischargable. I'm hoping to end this with no debt and have a fresh start but since they are not reporting the amount and type of debt it concerns me. They've also left off some judgment liens.

[AngelinaCat]

I certainly don't like hearing that your attorney is trying to under report your debt. He/she is probably trying to lower the amount you might have to pay to purchase your non-exempt stuff from the BK estate. But to leave off judgments? If I remember right, we were asked at our 341 if there were any judgments against us. There weren't, but if you are asked that, and you say 'yes', which is the truth, and it isn't in your paperwork, that is going to look bad. One of the questions you WILL be asked is "if you read everything, and is everything correct?" You will have to say "no", and then you and your attorney look bad.

Is there any way you can go to another attorney at this late date?

[nohope]

What would be non-exempt that I could purchase in NJ? I am quite concerned. AT the 341 I did tell the trustee, when asked, that I hadn't seen the petition prior to it's filing (I hadn't) - now the lawyer telling me not everything has to be reported. I've asked several times where the lawyer got their numbers from - they can't/won't answer. An amendment has to be filed. Don't know where to turn at this point....

[despritfreya]

The actual amount you owe is not of utmost importance. In fact, it is unlikely you will ever list the correct amount as the amount owed changes from day to day due to interest. What is important is that you properly list the name and address of each creditor, especially in an asset case. Having said that, your Schedules should be as close to being accurate as possible therefore the amount you think is owed is what should be listed. Further, if the debt has become a judgment, that should be disclosed as well. Now, do you need to jump through hoops to amend? Unless there is some huge discrepancy (like listing $3600 instead of $36000) not really so long as each and every creditor is listed so that they get proper notice.

Des.

[nohope]

Judgments were left off and other creditors were listed as judgment liens that were not. I provided them with copies of the judgments. My lawyer told me that they called the court house to get this information. When I asked for the phone number they called and who I could speak to, they told me they just called the court house. WHo would one call to get this information?

[AngelinaCat]

Judgments were left off and other creditors were listed as judgment liens that were not. I provided them with copies of the judgments. My lawyer told me that they called the court house to get this information. When I asked for the phone number they called and who I could speak to, they told me they just called the court house. WHo would one call to get this information?

It would be the Clerk of Courts' office. That official is custodian of 'Public Records' and is one of his/her Departments.

[keepsmiling]

Nohope, I know this has been a difficult journey for you. Just sending warm thoughts and good wishes your way.

[nohope]

I certainly don't like hearing that your attorney is trying to under report your debt. He/she is probably trying to lower the amount you might have to pay to purchase your non-exempt stuff from the BK estate. But to leave off judgments?

Would you explain what it's meant by "trying to lower the amount you might have to pay to purchase you non-exempt stuff"?
And yes, judgments were left off ( one was put on there that didn't exist...)

[tobee43]

as des points out...the amount is really not that important. what is MOST, is, the proper notification , so i suggest you double and triple check the address
of the creditors are correct, and the account numbers. actually on our sch f we put many of the amounst as "unknown"....since interest and fees were building while we were filing and it was impossible to be "exact" with the amounts owning.

the judgements i listed in two places...there was somewhere on the petition, and i'm sorry i don't have the exact question number, but it asked to list all docket numbers of any suits etc. we actually listed them in that area as well as sch f.

we named everyone and their mother and their mother's mother. i did NOT care...i wanted NO STONE left un turned...so i would tell you atty....i want them listed and list them and if they didn't have them amend your petition asap..(i should mention on the firms dime if your atty advised you not to list them).

best of luck to you!!

[chicagoannie]

I certainly don't like hearing that your attorney is trying to under report your debt. He/she is probably trying to lower the amount you might have to pay to purchase your non-exempt stuff from the BK estate. But to leave off judgments?

Would you explain what it's meant by "trying to lower the amount you might have to pay to purchase you non-exempt stuff"?
And yes, judgments were left off ( one was put on there that didn't exist...)

Does your attorney's office use some type of BK forms software where they just "fill in the blanks" 'cause that judgment could be from someone else's case. And certainly ALL you judgments should have been listed!

[mjengineer]

nohope is your case by any chance classified as "business", if you don't mind me asking did you pass or fail the means test? The reason I ask is if you don't pass the means test, then you can still get chapter 7 by doing it as a business debt case. Basically your business debt has to be one cent more than your personal debt, and your chapter 7 would be almost automatic. That may be why they are under reporting hoping they can get you in that way.

[nohope]

No it can't be classified as a business.