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
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