Bankruptcy Checklist: Social Security Numbers

Do you check the client’s  proffered   Social Security number against the number on their tax return?  I’d never thought to do so til my partner returned from a 341 meeting with this story.  She was sitting waiting for our client’s turn at a first meeting of creditors  when the trustee asked a debtor about the fact that the Social Security number on the petition didn’t match the number on the paystubs provided to the trustee.  “Oh,” says the debtor gesturing to the paystubs, “that’s the Social Security number I work under”!

I would never have considered that a debtor would use two different Social Security numbers without a thought.  Yet they apparently do.  With this  experience,  I have added the need to check the Social Security number against the tax return to my list of pre filing checks.

Bankruptcy Lawyers Convene in San Francisco

Looking back at some 15 weeks of writing Bankruptcy Mastery, I’m not sure I’ve ever said, explicitly, that the single most important step to learning the practice of bankruptcy law is joining NACBA.  The NACBA annual meeting starts Friday in San Francisco, and I simply assumed I’d see my readers there.

The National Association of Consumer Bankruptcy Attorneys is the only professional group dedicated to the issues in the lives of bankruptcy debtors.  It began, with  Norma Hammes and Ike Shulman  from San Jose,  as a lobbying voice for the consumer’s interests when there were few other groups advocating on Capital Hill.

It has grown to almost 5000 members and provides, in my view, the most focused and effective education for those practicing in this field.  The annual meeting will be 2 1/2 days of intense learning, bonding, and sharing among the best consumer lawyers anywhere.

So if I haven’t said it, and you haven’t done it, join NACBA today.  Get on the list serve, get free FastCase,  get your firm listed on the attorney finder, and seek out the state chair for your state for local opportunities.

Come to San Francisco (you can skip the flowers in your hair, as far as I am concerned).  Find me at the convention and introduce yourself.  I’ll be speaking on Saturday on Vesting and Conversion.  Let me know what you’d like me to address here.  It’s questions and feedback from new lawyers that keep this effort pointed in the right direction.

Bankruptcy Procedure Question? Ask a Clerk

The  bankruptcy judge ordered me to get the signature of an absent party on the written version of the order just made from the bench.  So, what to do when that party was unwilling to sign?

When the judge signed the order anyway, opposing counsel complemented me on knowing how to deal with the problem.  He’s practiced law even longer than I have and he said he wouldn’t have known how to quickly address the glitch.

Perhaps immodestly, I didn’t tell him how I did it.  I’d  sent an email to the court room deputy, with whom I’ve interacted for years, and asked!  I told her that I couldn’t get the signature, and wanted to know whether to put the story before the judge by a letter (with copies to all involved) or by a pleading.  She said “File something”.

My next question was whether I needed to provide a chambers copy of my pleading to the judge.  No, she said, let her know when it was filed and she’d pull it off of PACER.

So, I prepared my declaration, with a short recap of what had happened in the courtroom, my attempt to get the absent trustee’s signature, and the trustee’s reasons for being unwilling to sign. The order came back signed within the hour, helpfully faxed to me by the courtroom deputy.

The willingness to help with this sort of question, of course, varies from clerk to clerk, and often reflects the attitude of the judge.  But, cultivate court personnel, let them know you want to get this stuff right and make their job run more smoothly.

It’s easy, when everything is new to you, to assume that there are answers to every question, known to veterans but not to newcomers.   But one thing that keeps me interested in bankruptcy practice is the fact that there’s  routinely something new for which I don’t know the answer.  If after reading the local rules, you can’t figure out how the court would like it done, ask.

File Your Client’s Bankruptcy Right: Find the creditors

While a new client may seek out a bankruptcy lawyer when they are served with a lawsuit, they may overlook the plaintiff in that very  suit when listing their creditors.

Pretty amazing, but if you rely on the client to identify their creditors, their list will often omit creditors who didn’t send them a bill this month.  Creditors without notice of the debtor’s bankruptcy case may not be discharged, so it behooves the bankruptcy lawyer to ferret out the balance of the creditors.

Where do you find the non obvious creditors?

  • Lawsuits
  • Guarantees of debts of others: kids, partners, businesses
  • Hold harmless or indemnity clauses in marital settlement agreements
  • Parties to accidents or other incidents involving the client
  • Claims against the debtor’s corporate business
  • Leases for business premises or equipment

The better your understanding of the debtor’s financial life, the more likely it is that you can fill in the gaps in the list of creditors and get your client the most debt relief possible.

Bankruptcy Practice Provides Trial Opportunities

Before the judgeNew consumer bankruptcy lawyers can find themselves in the courtroom almost as often as they want.  Even without taking on the debtor related claims under RESPA, FDCPA, and FCRA, bankruptcy abounds with issues that allow a practitioner to get motion and trial experience.

While the article is dated, the theme of the 2002 ABA article on bankruptcy as a hot area of practice remains true:  bankruptcy is delicious in terms of its complexity and a quick route into the courtroom.  And that was before BAPCPA.

Bankruptcy Jude Manuel Barbosa is quoted for the proposition that there is a real need for quality lawyers to represent consumers. With the Great Recession, the need is even greater.

Experienced business and bankruptcy lawyers echo each other in highlighting the breadth of the practice.  The more you understand business, real estate or family law, the more you bring to a bankruptcy practice.  I would add that the more you focus on getting a practical and economic outcome for your client, the better the service you render.

“You can’t learn bankruptcy law solely from the books”, said bankruptcy lawyer Mike Sigal.

So hang out here a bit, and we’ll continue to share those things about bankruptcy practice that you can’t find in books.

More on courtroom experiences in bankruptcy

image courtesy maveric2003