Hypothetical Scenario

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Aside from possible allegations of bad faith re the dismissal and aside from
the small chance that the case will not be dismissed despite the no show, I
would not want to be making this recommendation on my professional
reputation. (We all know that it happens, but I would not want to be the
one who recommends it).
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.

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Hypo: Client tells you, last minute, $20k tax refund, not on schedules and exemptions already exhausted.
You are required to be a zealous advocate for your client. As a result you must tell your hypothetical client if client appearsclient will lose the refund and if client does not appear, case will be dismissed. You must also tell the client the client is required to amend schedules to show the refund. If client wants to appear and not disclose, you must resign and move to be relieved. If client decides not to appear, get the client to fire you/sub you out so client is in pro per, or make a motion to be relieved, or just do nothing as you cannot rat out a client.
Keep in mind you can only ethically rat out a client who wants to commit a crime if the client threatens murder, but you can take no further action to help the client commit a crime.
All these answers are different in a chapter 11, where you represent the estate, not the debtor.
dennis

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At the time a Bk is filed, the Debtor does not believe a tax refund will be received. After the Bk is filed, Debtor realizes they are entitled to a tax refund of approximately $20,000.00, 703.140(b)(5) already used, so no further exemptions.
1. If Bk filed, does Trustee get the refund?
2. If Debtor twice fails to show for 341 hearing, having case dismissed.
Debtor can refile at a later date.
Does anyone see problems with the case being dismissed and refiled at a later date?
This is only a hypothetical situation.
David Follin

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