Question:
I have a debtor who has several wage garnishments filed and some are already being deducted from his paycheck. My question is do I list these on Sch. F as well as entering info on Stmt Affairs (suits filed)? One is from the Calif. State Tax Board so is this still on Sch. E?
Answer:
The originating creditor of all debts should be listed on the appropriate schedule, whether there is a garnishment or not, and regardless of where the creditor is (California or otherwise).
So in your example, the State Tax debt should be listed on Schedule E, along with all other unsecured priority debts.
Any law suit that results in a garnishment (as well as those that don’t) should be listed on the Statement of Financial Affairs, with an appropriate description (e.g., consumer debt, debt collection, etc.).
Question:
If the monthly budget reported on the client intake forms from debtor show that she has charitable giving where there is no monies left over for this to balance schedule I and J, can we not have it included on the petition or is this the attorney’s decision?
If I understand the materials from 713 training correctly, if the basic needs expenses are over the limits allowed by National Standards, then I can adjust these somewhat to balance the schedules? Is that correct?
If on schedule D she has a lien on a chair, can I have her surrender the property if there is no money left over, again to balance schedules I & J?
Actually, if there is no income left over to pay for some of these unnecessary debts can I have these surrendered instead of retained as debtor stated on intake forms? I understand that in all of these cases I can send a note to the attorney but can I make these adjustments to balance the schedules?
If this same debtor is receiving monthly monies from relatives to meet monthly expenses, I cannot include this as income correct? Since it is not actually income but if she has debts that are not necessary for living such as the chair, or mobile home (that she pays on but family lives in it and that relative does not pay rental income), charitable giving, etc. can these debts be surrendered?
Answer:
When drafting petitions, do so using the information exactly as reported by the client, and point out areas of concern to the attorney on the attorney cover page you keep as you draft the petition.
The items inquired about are legal decisions that only the attorney can make, which a VBA should not make, but should coordinate with the attorney on any changes that he/she would like you to make.
Question:
I am working through your training course in preparation for the certification test which I plan to take soon after the seminar this month. I will be working in California’s Central District and the question on the top of my list is how will working in a community property state change the way I’ll be completing the various schedules?
Answer:
From the petition drafting perspective, there isn’t much difference between drafting a petition for a community property state and a non-community property state. You would mark the property listed on the Schedules of the petition as being community property, and list any former spouses for the last 8 years on the Statement of Financial Affairs, but that’s really about it.
Question:
How do I do a civil records search and/or a criminal records search without paying fees to have it pulled? Can you help me with this?
Answer:
Many jurisdictions have civil/criminal information in PACER, which is a good place to start, but you’ll have some PACER fees to access the information. Some jurisdictions however, don’t offer this information though, and you would need to find a source for this data, which may charge access fees for the information. It is up to you as the VBA to determine whether or not to pay these fees or not. Typically the VBA covers their own PACER fees, and attorneys cover other database access fees.
Question:
In regards to condo/townhouse association fees, what differentiates it from going on schedule I or Schedule G?
Answer:
Schedule I is where the debtor’s income is listed, and Schedule G would be where any leases/contracts would be listed, (cell phone, apartment, car, etc.). The condo/townhouse fees should go on Schedule J, with the debtor’s other monthly expenses
Question:
If the client has no recent appraisal and they do not have any idea of their home value, can sites such as Reply.com be used to input an estimated property value with the information referenced on the attorney sheet and a print out of the information obtained?
Answer:
This is a question you would have to ask the attorney on the case, as to what he/she wants to use
Question:
If the client is moving into an apartment and surrendering their property (not making monthly mortgage payments) then an estimated rental amount can be placed on Schedule I?
Answer:
Yes, you will want to make certain to include housing in the debtor’s budget. You will need to ask the debtor’s what they expect to pay in monthly rent, use this figure, and make a note for the attorney that you did this, so that he/she has an opportunity to provide guidance
Question:
I completed a petition for a married couple and did not include husband income in Schedule I (but I did include it in the Means test). It came back to me that I must include husband income in Means Test and Schedule I. It seems to change depending on trustee or attorney. What has been your experience?
Answer:
In our experience, the trustee has always wanted to see the non-filing spouse’s income on the petition. The exception has been when the non-filing spouse lives in a separate household.
Question:
Is there a guide line on how much percentage should be paid back to unsecured non-priority creditors?
Answer:
The debtor will typically need to payback as much to unsecured creditors as they can, but it can be as little as 2%-5%; it depends on the situation, jurisdiction, and of course, the trustee.
Wishing you a prosperous week.
Sincerely,
-The 713 Training Team
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DISCLAIMER: We at 713 Training are not attorneys; any information provided by 713 Training should not be considered legal advice. The information in this article, and any other materials provided by 713 Training, whether delivered verbally, written or via any other means, including electronic/digital delivery and storage, is for training purposes only, and is intended for individuals who work under the direction of a licensed attorney.
