Paperwork Filed - Extra 0 on 401k account - Do I need to amend?

[OweTooMuch]

Hello Everyone - My paperwork was filed and then I finally got my own copy. Somewhere along the lines an extra 0 was added to my 401k account so instead of it showing 3,000 it shows 30,000. Do I need to pay the $300 to get this amended? It is listed as exempt so I am curious. Please let me know.

[justbroke]

If this was through negligence by your attorney, then they should correct it at their own cost. I don't think the extra "0" matters in the grand scheme of things, but you do want your filing to be as accurate as possible.

[AngelinaCatHub]

Hello Everyone - My paperwork was filed and then I finally got my own copy. Somewhere along the lines an extra 0 was added to my 401k account so instead of it showing 3,000 it shows 30,000. Do I need to pay the $300 to get this amended? It is listed as exempt so I am curious. Please let me know.

$300 to amend? Should cost you $26. I hope your lawyer is not that expensive. 'Hub


EDIT: Hmmm second thought. Perhaps you meant $30 and put an extra zero on?

[OweTooMuch]

My paperwork indicated $175 to do an amendment and $26 refile fee so only $201 and that was for forgotten creditors and this is different. I will check with him as I sent a statement detailing the exact balance. I simplified it for my posting so it was more than just adding another zero. Thanks for the replies.

[HHM]

So long as you are in a state that exempts 100% of 401K, probably no need to amend.

In many districts, it still takes time and it is a pain in the ass to amend a petition even for simple little change. A Paralegal needs to set time aside, make the change, prepare an amendment cover sheet, prepare the amended schedule, file it, process the filing confirmation etc. So, for lower priced firms, an amendment fee of $150 to $300 is not unreasonable. As for who is at fault, BOTH sides usually bare some responsibility, after all, the debtor (you) should have read it before signing off. Yes, the attorney and staff should proof read, but the debtor is the final fail safe on accuracy.

I don't think I would amend on that issue.

[AngelinaCatHub]

So long as you are in a state that exempts 100% of 401K, probably no need to amend.

In many districts, it still takes time and it is a pain in the ass to amend a petition even for simply little change. A Paralegal needs to set time aside, make the change, prepare an amendment cover sheet, prepare the amended schedule, file it, process the filing confirmation etc. So, for a lower priced firms, an amendment fee of $150 to $300 is not unreasonable. As for who is at fault, BOTH sides usually bare some responsibility, after all, the debtor (you) should have read it before signing off. Yes, the attorney and staff should proof read, but the debtor is the final fail safe on accuracy.

I don't think I would amend on that issue.

This as well as JB's answer is good. However, does a client have the right to amend this error on his own? To correct a clerical error, mean a Motion has to be made to review? Seems like a very unnecessary exercise to me. Only asking. 'Hub

[LadyInTheRed]

This as well as JB's answer is good. However, does a client have the right to amend this error on his own? To correct a clerical error, mean a Motion has to be made to review? Seems like a very unnecessary exercise to me. Only asking. 'Hub

No motion is needed. It just does take time to prepare and file the amendment. The problem with the client doing it is that the client can make a mistake. I'm a paralegal in another area of law and have billed a lot of time fixing problems caused by a client trying to save legal fees. It is often cheaper to pay legal fees to have something done right the first time than to do it yourself and pay the attorney to fix your mistake. Of course, attorneys make mistakes too.

I agree that the client bears some responsibility for an error in the petiton. The debtor is the best person to catch this type of error because he/she knows that the 401k is worth $3,000, not $30,000. But, attorneys need to give clients plenty of time to review the petition instead of putting it in front of them, handing them a pen and pointing to the places where they need to sign. Regardless of everyone being responsible for the accuracy of the petition, if the client provided the correct information in the first place, I think a reasonable attorney would prepare the amendment without charge. I know the attorneys I work for would. We would then make a big point of having the client carefully review the amendment in hopes that they will understand they played a role in the error too. Writing off an hour or two of time and a $26 filing fee is a small price to pay for a happy client.

I also agree that an amendment is probably not necessary since a $3,000 401k is just as exempt as a $30,000 401k. If the attorney says an amednment isn't necessary, just remember to mention the error at the 341 when the trustee asks if the petition is accurate. The schedule can be amended after the 341 if the trustee insists on it.

[OweTooMuch]

Thanks everyone for the responses. I truly appreciate your time.

I do take responsibility for this as well but as LadyInRed mentioned there was a lot of paperwork. I did not get to see it ahead of time, or even again after I signed, until they sent me a copy the night they filed. We had gone back and forth on expenses as I kept providing new information. When I asked to see a copy of them they would just read them to me over the phone. I don't know if this is standard practice or not. I thought I would get to have one more final review before it was filed but at least it was filed and it looks pretty accurate except for this one item.

Please note, I am not/was not trying to point blame ......... I just wanted to see if this is going to be a big deal or not and then the best way to deal with it.

I am glad to be filed (it has been a long road) and now I just wait for my 341.