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I filed for a guy in jail once. The trustee did the 341(a) by interrogatory. No problem.
My fear is new Section 727(a)(12) which is convoluted to say the least.
The discharge can be denied if "there is pending any proceeding in which the debtor may be found guilty of a felony of the kind described in section 522(q)(1)(A) or liable for a debt of the kind described in section 522(q)(1)(B)."
522(q)(1)says the debtor can't exempt real property (basically) of more than $125,000 if (A) the debtor "has been convicted of a felony" which "demostrates that the filing of the case was an abuse of the provisions of this title." or (B)any [violation of securities laws] or "criminal act, intentional tort, or willful or reckless misconduct that caused serious physical injury.
There is a recent case that says "pending" works, i.e., filing before the conviction doesn't help the debtor.
Huh? The court has to hold a hearing ten days before the discharge is entered and obviously someone has to ask the judge to hold the hearing or it is too late.
JH
>
> I had a case with a client facing pending criminal charges re: one of his
> debts involving embezzlement fraud at a former employer. Employer never
> showed at the 341(a) but could have. Chapter 7 trustee was very curious as
> to the nature of the debt and the sizeable payments made back on it. Upon
> my coaching, Client invoked his 5th amendment right against
> self-incrimination numerous times, and I jumped in more than a few times
> with "asked and answered" and "assumes facts not in evidence" to a clearly
> flustered trustee. Hale
>
> -----Original Message-----
> Holly Roark
> Sent: Tuesday, February 02, 2010 4:38 PM
> To: cdcbaa@yahoogroups.com
> Subject: [cdcbaa] How does pending felony charges affect a bankruptcy?
>
> If a person has 3 pending felony charges - (1) for possession of marijuana
> with intent to sell (over 2 pounds), (2) for possession of drug
> paraphernalia, and (3) for forgery - and is in the middle of making a plea
> deal, can such a person file for bankruptcy and actually expect a discharge
> (provided they are not incarcerated for the 341A!!)?
>
> What if, despite how bad this all looks, he had a steady work record with a
> government job until the recent bust, and his credit spending is fairly
> ordinary looking and doesn't look like cash advance drug-related stuff? If
> this debtor throws himself on the mercy of the court/trustee/UST/DOJ/you
> name it, and discloses all his misdeeds, what do you think his chances are?
> He is down and out and just wants to start over with his life. How do you
> think such a case would go? What is likely to happen at a 341A or beyond in
> such a case?
>
> Does anyone have experience with such facts?
>
> I am really looking for some substantive answers if anyone has them, rather
> than the obvious advice to "run; run very far away from this client!"
>
> Holly Roark
> holly@...
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