Here’s some good advice from California bankruptcy attorney Douglas Jacobs: be sure tell your attorney everything about all your income and expenses.
Attorney Jacobs tells a little story about one of his clients who failed to do exactly that. This guy showed up at the meeting of creditors and suddenly “remembered” that he got a little income from a trust. That raised the trustee’s eyebrows, says Jacobs, and ultimately led to a letter from the US trustee strongly suggesting he consider a Chapter 13 case.
The attorney might be able to amend the schedules and find some extra expenses that offset the trust income, but this debtor will surely be facing more hearings, more litigation, and more money spent on the case. Don’t complicate a simple bankruptcy case — make sure your lawyer knows all of your income sources and all of your household and business expenses BEFORE the case gets filed in court!
By Doug Beaton