Trustee Blog

Taxes To Trustee Before the Hearing

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Chapter 7 Trustee Arturo Cisneros will not conduct the meeting of creditors without the tax returns. Mr. Cisneros follows the bankruptcy code which states that the tax returns must be in the trustees office at least seven days before the meeting of creditors. If the client does not have the taxes with him at the hearing, then his matter is put at the end of the calendar. Most times the attorney will have a copy of the taxes in his file, but if the taxes are not in the file, then the trustee will ask the client to go home to retrieve.

The matter is put on second call until the client comes back.

Today I saw this happen on Mr. Cisneros’ calendar at least five times. In one ,the attorney and the debtor did not have the taxes and the taxes had to be faxed to the attorney at a site away from the hearings. The attorney and the debtor waited two hours to have the taxes faxed and to have the matter re-heard. In another one, the debtor handed the taxes to the trustee and the trustee said he would review the taxes later. The Debtor waited half an hour for the matter to be re-heard.


Practice Pointer:

Mail the taxes to the trustee at least three weeks before the meeting of creditors. In any case, please bring a copy of the taxes to the hearing to avoid having to wait for the matter to be reheard.

In another case that occurred on Mr. Cisneros’ calendar, the United States Trustee’s staff attorney questioned a debtor as why he filed a case for only $3000 in schedule “F” debt. At the hearing, the pro se debtor revealed that he actually had a job and was not disabled and that he had at least three pieces of real property that were not listed. The debtor then tried to conceal who actually drafted the petition. The matter was continued at the request of the US Trustee and Mr. Cisneros told the debtor to get a lawyer as he planned to sell the real property.


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