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Disclosure of bank account - Debtor has unique line of work
I agree with others that it "sounds" like it is his money, but the facts are
not at all clear to me. Without knowing the mechanics of his business, the
contractually arrangement with WFB and any other entity, it would not
possible to analyze the problem. Are these the kind of standalone ATM
machines that one sees in many businesses? Where does the money come from
that he puts in the machines? Is there some kind of security interest in
the bank account with WFB? Until you know these answers and more you are
flying blind. Without a lot more information, I would never file a case
with these facts because I would have no idea what the risks are.
Even if it is not his money, he is holding it for someone else and it must
be disclosed on the SOFA.
If you have any questions or concerns, please contact me.
Pat
Patrick T. Green, Esq.
Fitzgerald & Green
Attorneys at Law
1010 E. Union Street
Suite 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw.com
The post was migrated from Yahoo.
Account must be disclosed. You cannot help a client hide assets.
Sent from my iPhone
On Nov 15, 2010, at 6:15 PM, "Nikki" wrote:
Potential Ch 7 Debtor has a DBA operating bank account for his ATM business. At any given point in time he may have thousands of dollars in his operating account but none of it is really his, and the money is constantly revolving, such that he keeps filling up the ATM machines and gets paid back from the bank when withdrawals are made.
Bank with which he has this account is Wells Fargo.
He started with a $10,000 personal investment in this business, and now his monthly bank statements show deposits of over $70,000 and withdrawals for the same amounts in reference to this business.
I'm working on my CYA letter to the client and was wondering:
Questions:
a) does this account need to be disclosed on Sch B? if so, balance may be high on date of filing, and unable to exempt even though it is not his personal funds.
b) has anyone had a similar situation and can shed some light on anything I may be missing or I should be careful about?
c) any ideas on whether Wells Fargo would/could possibly freeze this business account pending release from the Ch. 7 Trustee? That would be disasterous for the debtor.
Thank you in advance...
Nikki Hashemi
Account must be disclosed. You cannot help a client hide assets.Sent from my iPhoneOn Nov 15, 2010, at 6:15 PM, "Nikki" <hashemiesq@yahoo.com> wrote:
Potential Ch 7 Debtor has a DBA operating bank account for his ATM business. At any given point in time he may have thousands of dollars in his operating account but none of it is really his, and the money is constantly revolving, such that he keeps filling up the ATM machines and gets paid back from the bank when withdrawals are made.
Bank with which he has this account is Wells Fargo.
He started with a $10,000 personal investment in this business, and now his monthly bank statements show deposits of over $70,000 and withdrawals for the same amounts in reference to this business.
I'm working on my CYA letter to the client and was wondering:
Questions:
a) does this account need to be disclosed on Sch B? if so, balance may be high on date of filing, and unable to exempt even though it is not his personal funds.
b) has anyone had a similar situation and can shed some light on anything I may be missing or I should be careful about?
c) any ideas on whether Wells Fargo would/could possibly freeze this business account pending release from the Ch. 7 Trustee? That would be disasterous for the debtor.
Thank you in advance...
Nikki Hashemi
The post was migrated from Yahoo.
Potential Ch 7 Debtor has a DBA operating bank account for his ATM business. At any given point in time he may have thousands of dollars in his operating account but none of it is really his, and the money is constantly revolving, such that he keeps filling up the ATM machines and gets paid back from the bank when withdrawals are made.
Bank with which he has this account is Wells Fargo.
He started with a $10,000 personal investment in this business, and now his monthly bank statements show deposits of over $70,000 and withdrawals for the same amounts in reference to this business.
I'm working on my CYA letter to the client and was wondering:
Questions:
a) does this account need to be disclosed on Sch B? if so, balance may be high on date of filing, and unable to exempt even though it is not his personal funds.
b) has anyone had a similar situation and can shed some light on anything I may be missing or I should be careful about?
c) any ideas on whether Wells Fargo would/could possibly freeze this business account pending release from the Ch. 7 Trustee? That would be disasterous for the debtor.
Thank you in advance...
Nikki Hashemi
The post was migrated from Yahoo.