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 Schedule F as well as entering info on Statement of Affairs (suits filed)? One is from the California State Tax Board so is this still on Schedule 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. The State Tax debt should be listed on Schedule E, along with all other unsecured priority debts. Any lawsuit 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.
Question:
If the monthly budget reported on the client intake forms shows that the debtor has charitable giving where there is no money left over to balance Schedules I and J, can we not have it included on the petition or is this the attorney's decision?
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 as you draft the petition. The items you inquired about are legal decisions that only the attorney can make. A VBA should not make these decisions, but should coordinate with the attorney on any changes he/she would like you to make.
Question:
I am working through your training course in preparation for the certification test. I will be working in California's Central District and my question 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. You would mark the property listed on the Schedules 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?
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 don't offer this information, and you would need to find a source for this data which may charge access fees. It is up to you as the VBA to determine whether to pay these fees. 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 is 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?
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 debtors what they expect to pay in monthly rent, use this figure, and make a note for the attorney so that he/she has an opportunity to provide guidance.
Question:
I completed a petition for a married couple and did not include the husband's income in Schedule I (but I did include it in the Means Test). It came back that I must include the husband's income in the Means Test and Schedule I. It seems to change depending on the 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 guideline on how much percentage should be paid back to unsecured non-priority creditors?
Answer:
The debtor will typically need to pay back 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.
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