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Disclosure of bank account - Debtor has unique line o=
It sounds like it is his money. It seems me that the money is no different than
inventory, so it is no different than any other business.
Arnold Hernandez
________________________________
To: "cdcbaa@yahoogroups.com"
Sent: Tue, November 16, 2010 9:11:01 AM
Subject: Re: [cdcbaa] Disclosure of bank account - Debtor has unique line of
work
And sounds like the account IS his money. From the comment that the bank "pays
him back" when withdrawals are made, it sounds like he is effectively making
short term loans to the bank, who I would assume then pays him back with a small
percentage fee of the withdrawals for his trouble.
Joseph E. Caceres, Esq.
Sent from my iPhone
On Nov 16, 2010, at 9:04 AM, "Dennis" wrote:
>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
>>
>>
It sounds like it is his money. It seems me that the money is no different than inventory, so it is no different than any other business. Arnold Hernandez
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