How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask cfortunato Your Own Question
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
14232603
Type Your Bankruptcy Law Question Here...
cfortunato is online now
A new question is answered every 9 seconds

my ex-husband was asked if he had income in his 341 hearing.

Resolved Question:

my ex-husband was asked if he had income in his 341 hearing. he answered "no". he did infact have income from his self-settled trust. is my husband's bankruptcy attorney liable for false answers given during the hearing?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi Drzman,

Did your husband make a mistake, or did he intentionally lie. The reason I ask is I have had clients to something similar, but they thought they were telling the truth - thinking that only wages are income.

Also, did his attorney know about this income?

Customer: replied 6 years ago.
My ex-husband's bankruptcy is for debts over $5,000,000.00 it seems highly unlikely that he wouldn't know that the distributions from properties in his self-settled trust were not income. But, given the benefit of the doubt, how would he know if the distributions were considered income?
Expert:  cfortunato replied 6 years ago.

Do you mean how would the trustee and/or his lawyer know whether your ex-husband knew if the distributions were income?

 

Customer: replied 6 years ago.
My ex-husband claimed that he had no income and was living off of his social security. My ex-husband's bankruptcy attorney knew that he was a partner in many LLC's. The properties were throwing off distributions for many years. The LLC's were in a self-settled trust. The properties were listed on his filing but not the fact that they were in a trust. Therefore, no-one not even my attorney's asked for the 10 year look back for transfers into the trust.
Expert:  cfortunato replied 6 years ago.

If it can be claimed that the attorney did know - or should have known - that your ex-husband lied at the trustee meeting, then the attorney can be disciplined and possibly dis-barred from the Bankruptcy court. That would be the extent of his liability.

I think this is what you actually wanted to know. If not, please let me know.

Thank you!

cfortunato and other Bankruptcy Law Specialists are ready to help you

Related Bankruptcy Law Questions