Couple came in for Chapter 7 counseling, husband became incarcerated before the 341, and DOC helped arrange a Telephonic Appearance. Debtor (f) asked for letters to prospective auto loan originators an...d landlords. Debtor (f) had EMT jobs, but massive debt from her husband's issues. Filed 12/6/2010.
Chapter 13 bankruptcy
Chapter 13 nightmare
Feb 27, 2011
OUTCOME: Case Voluntarily Dismissed by Debtors
Debtors referred by their neighbors to me informed me their car had been repossessed and was about to be resold and their house was in foreclosure. They stated that they had ceased payments on advice o...f previous counsel. They pleaded poverty even thought they had $200k of equity in their home, and paid only $126 out of the Ch. 13 Flat Fee, signing a payment plan. Whilst putting together a Ch. 13 Plan that the secured creditors and the Debtors could live with, and complying with the Trustee's Objections, I learned that they had been paid by an insurance company for a roof repair. They had the roof repaired, but had kept the money. Upon further questioning, I found out that a lot of their numbers did not add up, and that they had in fact ceased payments on their house and car in May 2010, 5 months prior to having hired previous counsel. I contacted the Ethics counsel of the Colorado Bar and discussed their case at length and was advised to drop them as clients. I withdrew representation as it was my professional opinion that they were attempting to use my services to perpetrate fraud on the court. This after repeated remonstration on my part that they provide me with correct figures (they never did). A day before the Confirmation Hearing, they asked me to Voluntarily dismiss their case. I was of course never paid, but worked diligently for months. Lesson learned. No "emergency filing" without a full fee paid up front.
Chapter 7 bankruptcy
A mystery bank account appeared
Jan 03, 2011
OUTCOME: Trustee returned bank account to mother.
Chapter 7 Debtor came to me for filing. I prepared all the documents, filed, then was noticed by Wells Fargo that my Debtor was a signatory on a bank account with over $11k in it. Her mother, without t...elling my Debtor, had given her signatory power over the bank account. We brought in bank records showing no interaction whatsoever between my Debtor and the account, and the mother appeared at the 341.