Issues that arise in bankruptcy cases
Most bankruptcy cases proceed smoothly. When problems do occur, they often follow recognizable patterns.
Filing accuracy problems
- Missing creditors - If a creditor is not listed in your schedules, that debt may not be discharged
- Incorrect asset values - Undervaluing assets can lead to trustee objections; overvaluing can reduce available exemptions
- Wrong exemptions - Each state has different exemption laws. Using the wrong scheme can put assets at risk
- Income miscalculations - Errors on the means test can result in case dismissal or forced conversion
Communication breakdowns
- Unreturned calls - Attorneys must keep clients reasonably informed under Model Rule 1.4
- No explanation of court orders - You should understand what every court order means for your case
- Surprises at the 341 meeting - Your attorney should prepare you for the trustee's questions
Deadline issues
- Missed filing deadlines - Tax returns, pay stubs, and certificates must be filed within specific timeframes
- Late plan payments - In Chapter 13, failing to make timely payments can result in dismissal
- Failure to respond to trustee requests - The trustee can move to dismiss if document requests go unanswered
If you spot a problem: First, raise the issue directly with your attorney in writing (email creates a record). If the attorney does not respond or resolve the issue, you can contact the U.S. Trustee's office or your state bar association.