FREQUENTLY ASKED QUESTIONS
Q: Tax returns
A: Section 521 of the Bankruptcy Code says you must provide the trustee with copies of your latest tax returns, and you have to provide them to me at least seven (7) days prior to your Meeting of Creditors. That means State and Federal returns. It also means a complete copy. If I do not receive them, you Meeting of Creditors is subject to continuance, and your cases may be subject to dismissal.
Q: Can I keep my tax refund in Chapter 7?
A: It depends. I’m not being evasive, because it really does depend on a host of circumstances. The short answer is that usually, you will be able to keep most or all of your tax refund. With exemptions being what they are today, this will be true for most cases. In a case with an unusually large refund, however, it is certainly possible that your tax refund will be “in play.” Be sure to discuss it with your attorney BEFORE you spend it so that your attorney can clear it with me. It is a whole lot easier to deal with it while the money is still available. If you take a refund or part of a refund that should have gone to the trustee, it will likely prevent you from receiving a discharge.
Q: What is acceptable photographic identification?
A: The photo ID required in Chapter 7 must be issued by a governmental agency, and, must be current. Typically, it will be a state driver’s license, passport, or military identification card. One time I did accept a firearms permit card because it was issued by a state agency and did include a photo. NOTE: make sure your driver’s license is not expired. If the court excuses your appearance and allows you to file answers to interrogatories instead, be sure to attach to your responses a copy of your photo ID.
Q: What should I expect with courthouse security?
A: You will be entering a Federal courthouse, so expect to have to pass through a security checkpoint. No cell phones, cameras, knives, guns, scissors etc are permitted. Most people know not to bring weapons, but remember cell phones and cameras are also prohibited. You should arrive at least 30 minutes before your scheduled hearing time. There are often lines at the security desk, so it is wise to allow yourself a little extra time.
Q: I just received notice that I may have a legal claim I didn’t know about when I filed Chapter 7. What am I supposed to do when my case has already been closed?
A: Notify your attorney. Your case may need to be reopened. If you have a legal claim which had “accrued” when you filed your bankruptcy, the fact that you may have been unaware of its existence does not remove it from the bankruptcy estate. If the elements of the cause of action were present, then in the 11th Circuit it is an asset of the bankruptcy estate. I have reopened quite a few cases, for example, to administer pelvic mesh claims where the procedures were performed years ago and the patient didn’t realize there was a legal claim. By all means, disclose, disclose, disclose.
Q: What is the rule for inheritances?
A: If you become entitled to inherit, or receive life insurance, before filing Chapter 7, OR, within one hundred eighty (180) days thereafter, the inheritance is part of your bankruptcy estate and trustee is going to administer it. Again, make sure you let your attorney know all pertinent details.
Q: My husband and I filed a joint Chapter 7. I expect to have a lawsuit recovery for injuries I suffered in an accident, but for which he has no claim. Some of our debts are his alone. Will my money go towards his debts?
A: No. If an asset is attributable to one debtor only, then it can only be applied towards debts for which that debtor is personally liable. If the debt is husbands’ only, and wife is not individually liable, then it won’t be paid.