 Trustee dismisses bankruptcy
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 Dear
Bankruptcy Adviser,
We just received a dismissal of our bankruptcy from the trustee. What does this mean? Does this mean my husband's check will not be garnished? We were dismissed due to not sending them copies of our tax return. The trustee said I had a few weeks to get it to her, and then we get a dismissed court notice.
-- Shawn
 Dear
Shawn,
You've had a setback, but you can recover. You've filed "pro se," that is, you've filed without legal representation. I can tell that you've filed pro se because an attorney would have informed you that you must send in your taxes at least seven days before your "meeting of creditors."
Now, the law does allow nonattorney filers to complete
the petition and represent themselves before the trustee -- an attorney
is not always necessary. However, I must point out that many trustees
strongly dislike pro se filers. Why, you ask?
Here's an example. A few weeks ago I was attending the meeting of creditors with my client. I sat and watched as one case after another filed by individuals without an attorney got continued. Sometimes, it was the second or third continuance.
Cases got continued because the right documents weren't
filed on time, weren't filed properly or weren't brought at all.
Often pro se filers didn't know what amounts could be used for certain
exemptions. One person claimed that he was spending $700 per month
on food. While this might have been true, there is a fixed amount
that is permitted. Naturally, the trustee objected and that case
was continued.
Certainly, there are some pro se filers who are successful.
However, bankruptcy can be a tricky area of law, especially to someone
who is not trained as a lawyer, and the court will still hold you
to the highest standards. Therefore, Shawn, you need to know this:
You are obligated to include the pay stubs of the last two months'
worth of employment and copies of last year's tax returns. You may
need the last six to 24 months of bank statements, six months of
pay stubs and two years of tax returns.
Pro se filing became more difficult when oversight
increased under the new laws. There is only one trustee assigned
to each case -- the local "panel trustee" handles the
details of the individual cases. However, now the trustees are under
more aggressive supervision from the United States trustee looking
for bankruptcy abuses. In essence, each local panel trustee has
a United States trustee looking over his or her shoulder and the
rules are being followed even more precisely.
Shawn, you're going to need to refile. However, you
have lost some protections afforded to you the first time you filed.
For example, if you were subject to a wage garnishment order prior
to filing your first case, then you may not be able to stop the
order with another filing. The new law changed the protection time
period available to you because you need to refile. Until you receive
a discharge, your wages may be subject to garnishment. As well,
you'll have to pay the filing fee and may need to meet with another
credit counselor. Then, before you file, if you intend to file pro
se, check your local bankruptcy court Web site. Most sites have
a checklist of the documents you need and some helpful guidelines.
This way, when you attend the "meeting of creditors" (your
341 hearing), you can complete your hearing with the trustee and
get on with your life.
Good luck!
Justin Harelik is a practicing attorney in Los
Angeles. To ask a question of the Bankruptcy Adviser go to the "Ask
the Experts" page, and select "bankruptcy" as
the topic.
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