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Phillips Esq.
Phillips Esq., Attorney-at-Law
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Wells Fargo froze our joint accounts after my husband filed

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Wells Fargo froze our joint accounts after my husband filed Ch. 7 on 10/21/13, it was not a joint filing. I filed for him using the the templates I used when I filed my Ch. 7 in 1/4/10. I also had WF bank at the time and my accounts did not get frozen. I had a discharge 3 months later. When I filed, we were not married. I am a Realtor and my husband a loan officer. He filed prose with me being the non-attorney that assisted him. I did not include on the schedule b our joint bank accounts. I did not put the correct exemption codes on schedule C. I did include both our incomes and expenses on the BK. After we found out that WF just freezes the bank accounts, my husband went to see the trustee. The trustee informed him that he did not request the freeze. He wasn't too happy with my husband barging in and made an appt the next day to discuss. We thought we were able to get the release the next day from the trustee but instead he said we should have known better to include our joint bank accounts since it was community property and we were in real estate. We had a total of $15,881 in both bank accounts. The trustee basically made it sound like we purposely try to hide our joint accounts and that he would deny any amendments or if we tried to get the case dismissed. I started to research further and read up on all the CA exemption codes and filed an amended schedule B & C. I included my car which is under my name only this time on schedule B. There is only $2500 equity on it and used CA system 2 and section code 703.140(b)(2). His car is worth less than what he is owed but I put the same exemption on there with $2000. For the bank accounts, I used 703.140(b)(5) & 703.140(b)(1) since it was more than $15,000. When I initially did the paperwork, I used the same exemption code of 703.140(b)(3). And I got my info from my sister in law who use to be a paralegal. I had no idea what these exemption codes were. I just used them because they worked for me when I filed my BK in 2010. Now had I done this correctly in the first place, and known that I was supposed to put our joint accounts on the schedule B and put the right exemption codes on schedule C, I would not be in this predictament. My husband filed the amendment on 10/31/13. Our goal is to get our cash back. Can this trustee argue that we should have known better since we are in the real estate and mortgage industry that we should know about community property? I want to argue that I do know that, but I don't know how to file BK paperwork! Our 341 meeting is on 11/26/13. I included the master list with the amended schedule, will the court notify the creditor and the trustee like they did the first time I filed or is it my responsibility? It gets confusing as my husband had to sign the proof of service form.
Thank you in advance for the help.
Submitted: 1 year ago.
Category: Legal
Expert:  Phillips Esq. replied 1 year ago.
Hello: This is PhillipsEsq. I am a licensed Attorney and I will be assisting you today.


Can this trustee argue that we should have known better since we are in the real estate and mortgage industry that we should know about community property?



Response 1
: No, because as a matter of course, the Debtor is allowed to amend the schedules. See Federal Rules of Bankruptcy Procedure, Rule 1009.


I want to argue that I do know that, but I don't know how to file BK paperwork!




Response 2:
This argument is NOT necessary. See my first response. Also, your argument is not persuasive. If you do not know how to file bankruptcy papers, you should have retained a local bankruptcy Attorney to file the papers for you. Not knowing what to do is not a valid excuse. Fortunately, in this case, there is no argument to make because you (your husband) are entitled by law to amend your Schedules.


Our 341 meeting is on 11/26/13. I included the master list with the amended schedule, will the court notify the creditor and the trustee like they did the first time I filed or is it my responsibility? It gets confusing as my husband had to sign the proof of service form.
Thank you in advance for the help.



Response 3: It is the responsibility of the Debtor to serve a copy of the amended Schedules to the Trustee and any affected creditor. See Federal Rules of Bankruptcy Procedure, Rules 1009 and 1008.

Phillips Esq., Attorney-at-Law
Category: Legal
Satisfied Customers: 13133
Experience: B.A.; M.B.A.; J.D.
Phillips Esq. and 13 other Legal Specialists are ready to help you
Customer: replied 1 year ago.

I included my car on Schedule B & C. The original Schedule D only has my husband's auto loan. In which case I also incorrectly stated the value of the car was more then what it is after I checked with Kelly Blue Book. I corrected the value of my husbands car when I did the amendment. Do I need to amend schedule D to show my car which I am the only name on debt? Only my car has equity.


 


I did not give my husband a 2nd copy when he went to court to file the amendment. They just took the paperwork from him. The amended schedule(s) form I have says "For Court Use Only" at the bottom right. Since we did not get anything back, do I mail this document to the trustee along with the amended schedules? And do I only mail the creditors this amended schedule form? Since it says on this form to Notice ALL Creditors...

Customer: replied 1 year ago.

I included my car on Schedule B & C. The original Schedule D only has my husband's auto loan. In which case I also incorrectly stated the value of the car was more then what it is after I checked with Kelly Blue Book. I corrected the value of my husbands car when I did the amendment. Do I need to amend schedule D to show my car which I am the only name on debt? Only my car has equity.


 


I did not give my husband a 2nd copy when he went to court to file the amendment. They just took the paperwork from him. The amended schedule(s) form I have says "For Court Use Only" at the bottom right. Since we did not get anything back, do I mail this document to the trustee along with the amended schedules? And do I only mail the creditors this amended schedule form? Since it says on this form to Notice ALL Creditors...I will also review your link to amending the schedules.

Expert:  Phillips Esq. replied 1 year ago.

I included my car on Schedule B & C. The original Schedule D only has my husband's auto loan. In which case I also incorrectly stated the value of the car was more then what it is after I checked with Kelly Blue Book. I corrected the value of my husbands car when I did the amendment. Do I need to amend schedule D to show my car which I am the only name on debt? Only my car has equity.

Response 1: If your car has a loan, then it also needs to be listed on Schedule D. Otherwise no.



I did not give my husband a 2nd copy when he went to court to file the amendment. They just took the paperwork from him. The amended schedule(s) form I have says "For Court Use Only" at the bottom right. Since we did not get anything back, do I mail this document to the trustee along with the amended schedules? And do I only mail the creditors this amended schedule form? Since it says on this form to Notice ALL Creditors...I will also review your link to amending the schedules.

Response 2: You have to mail copies of the amended documents to the Trustee and ALL affected creditors. Not all creditors are affected by the amendment. For instance, if you change the value of your husband's car and that car still has a loan, then the lender, the creditor , is the only one that needs to be notified of the amendment because the creditor is affected by the amendment because the car is its collateral. No other creditor needs to be informed about the amendment.

Customer: replied 1 year ago.

ok I hope this is the last question. I will also leave a tip for your answers. Thank you so much. When I first filed, I put only my husband's bank account. Our joint account at WF got froze, so now I am amending schedules B & C. Since there is cash of $15,881 but is exempt, does this affect all creditors? We do plan to keep his car which is a joint account. I did say on the statement of intention that we plan to retain that debt. Now that I am amending schedule D to include my car, do I have to show on that statement of intention my car loan as well? Any other schedules I need to correct with this corrected info?


When and do you think the funds in the WF account will be released?

Expert:  Phillips Esq. replied 1 year ago.

ok I hope this is the last question. I will also leave a tip for your answers. Thank you so much. When I first filed, I put only my husband's bank account. Our joint account at WF got froze, so now I am amending schedules B & C. Since there is cash of $15,881 but is exempt, does this affect all creditors?

Response 1: No, it does not.

We do plan to keep his car which is a joint account. I did say on the statement of intention that we plan to retain that debt. Now that I am amending schedule D to include my car, do I have to show on that statement of intention my car loan as well?

Response 2: Yes.

Any other schedules I need to correct with this corrected info?

Response 3: Unfortunately, proper answer to this question would require the careful review of the documents you filed with the Court. Since I am not privy to the documents that you filed with the Court, I cannot honestly answer this question.

When and do you think the funds in the WF account will be released?

Response 4: As soon as the bankruptcy Trustee reviews your Amendment and agrees with the Amendment. If the Bankruptcy Trustee objects to your Amendment for any reason, the Trustee must file Objection to the Amendment and the Court would schedule a hearing in the case. So, it may be quite a while before you can get access to your funds.

Customer: replied 1 year ago.

I think I will have to amend more then schedules B & C. Per our discussion now, I need to amend D and Statement of Intentions. The total amount in schedule D is higher now, which that amount goes onto the summary of schedules form, then the unsecured portion goes onto the Statistical Summary of Certian Liabilities. It is getting late now and I will have to go through every page and review and see which documents needs to be corrected. How much would you charge to review my file?

Expert:  Phillips Esq. replied 1 year ago.
I think I will have to amend more then schedules B & C. Per our discussion now, I need to amend D and Statement of Intentions. The total amount in schedule D is higher now, which that amount goes onto the summary of schedules form, then the unsecured portion goes onto the Statistical Summary of Certian Liabilities. It is getting late now and I will have to go through every page and review and see which documents needs to be corrected. How much would you charge to review my file?


Response: Thank you for asking. However, I cannot review your file for you or tell you which Schedules that you need to amend. That would amount to giving you legal advice, which I am prohibited from doing by the terms of service.
Customer: replied 1 year ago.

We went to our meeting of creditors today. The trustee released our funds at Wells Fargo. So the money just went back in our accounts. One of the creditors that showed up, it is an individual that has a judgement for a total of $18k. He came unprepared and just called my husband a scumbag at the hearing and the trustee didn't say anything. Does that happen and allowed by a trustee? It wasn't even a question but the trustee just let him rant on and on. He started to accuse my husband of hiding all the money in my accounts. So then instead of closing the file, we have another hearing on 12/10/12 so that the creditor has his time to do his "investigations" he said. And that he would hire an attorney to find out if we had money hidden elsewhere. What I would like to know is when people talk about forensic auditing, how is that done? I understand that your bank accounts have to be subpoena by a court order for a bank to release your bank information, and the IRS can get your info. But how can anyone else get the information? I know forensic auditing is used in a lot of divorce cases but is that because it is a husband and wife privileges, but how is it done for other people?


 


We were able to get $15,811 back and I used the exemption codes. The accounts that were frozen were our joint accounts. Now I have several other accounts that are in my name only, a personal account and 2 business accounts that I did not include as my assets on the bankruptcy. At the time that our accounts were frozen, There was $10k in the other accounts. When our funds were drained, I had to use most of it to pay our expenses. As of today I had $6,628 and that was because I got paid in the amount of $5600. (sorry not sure if that is revelant)


 


We are worried that when we come back to the hearing on 12/10/13, if this creditor gathers information that there were other bank accounts with funds, and we did not disclose them on the bankruptcy forms, what kind of trouble can we get in? My husband filed pro se. We were married on 10/11/12. Do I have to prove what funds were mine before we got married?

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