Bankruptcy Mastery

Becoming a better bankruptcy lawyer

  • Home
  • About Cathy
  • Contact Cathy
  • Articles by Topic
    • Attorneys fees
    • Bankruptcy Practice
    • Before filing
    • Business bankruptcy
    • Cases new & significant
    • Counseling clients
    • Family Law in Bankruptcy
    • Means test
    • Opinionated
    • Real property
    • Rule 3002.1
    • Tax
  • Table of Contents
  • Start Here

Know The First Rule For Bankruptcy Forms

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

Now retired Judge Jaroslavsky popped this question on a room full of new bankruptcy lawyers:  what’s the first rule for filling out a legal form?

An answer from the floor suggested “make sure you have the most recent version”, which I thought was pretty good.  But the judge had something else in mind:  know the purpose for which the form asks the question.

There, in a nutshell, is the First Rule for filling out bankruptcy forms. Know why the bankruptcy forms asks the question, and what flows from the answer.

Bankruptcy more than filling out forms

Examine the work product of newbie bankruptcy lawyers and it’s clear they know neither the rule, nor the reason behind the rule. 

The Statement of Financial Affairs is nothing but questions:  how much did the debtor make last year?  paid any old bills?  transferred anything recently? holding anything that’s not yours?

Each of those questions tells the bankruptcy trustee something:  is the  debtor’s financial picture in the schedules consistent with the recent past?  are there avoidable transfers?  anyone I can sue in this mess?

Judge J reiterates a point I’ve made since I started mentoring newcomers to this practice:  bankruptcy is not just filling out forms. 

The fact that our work product finds its way into official forms, and that there are software programs to complete those forms, encourages some to think that’s all there is to it.  But witness a case botched by a petition preparer or by a pro per and you get a gut wrenching view of the falsity of the notion.

See if you can find the reason for each question in the schedules and the statute behind it.

More

Do the schedules tell the whole story?

Image courtesy of Mrs. Logic.

More from my site

  • Chapter 7 Risks Everything For Operating BusinessChapter 7 Risks Everything For Operating Business
  • Bankruptcy Lawyer’s Weapon of ChoiceBankruptcy Lawyer’s Weapon of Choice
  • Is Your Debtor Corporate or Corporeal?Is Your Debtor Corporate or Corporeal?
  • Is The Price Right?Is The Price Right?
  • Bankruptcy Advice Lost In TranslationBankruptcy Advice Lost In Translation
  • Taxes, Bankruptcy & The New YearTaxes, Bankruptcy & The New Year

Filed Under: Bankruptcy Practice

[footer_backtotop]

Copyright © 2023 ·Prose · Genesis Framework by StudioPress · WordPress

Theme customization by Rowboat Media LLC