310.376.9865
Tax Returns: The party filing bankruptcy must send a copy of his last filed tax return to Bankruptcy Trustee, at least seven days before the hearing.
The trustee will examine the Tax Return to determine if their are any discrepancies between the tax return and the bankruptcy filing. Perhaps the tax return indicates interest on mortgage payment, however the bankruptcy schedules show there is no house. Perhaps the tax return indicates profit or loss from a business owned by the debtor, but the business is not disclosed on his bankruptcy filing.
- This morning, the trustee noted one debtor had $112.00 interest income. Perhaps this would indicate an undisclosed asset, and the trustee could demand the asset turnover.
- On another case, the tax return indicated assets that were valued at $35,000 were listed on the return’s depreciation schedule. The debtor believed the assets to be worth approximately $5,000, and wasn’t sure why her accountant put $35,000. Therefore, the debtor will have to provide pictures of the assets in order for the trustee to determine an estimated value.
Moral of the story: Make sure there are no discrepancies between you tax return and your papers filed with the bankruptcy court.
A Debt Relief Agency
- Law Offices MJ Mann Bankruptcy Attorney
- 2706 Artesia Blvd, Suite BK
- Redondo Beach, CA 90278
- 310.376.9865
