QUESTION
Does the court or trustee perform background check once a bankruptcy is filed?
Asked on Feb 22nd, 2013 on Bankruptcy - Arizona
More details to this question:
Once a bankruptcy case has been filed, does the court or trustee perform background checks to verify income? Or do they use the documents provided in the filing. Also, is social security benefits included in the income?
10 ANSWERS
Generally, the trustee will rely on the income statements and not perform a credit or background check. I urgently advise you not to put anything inaccurate in the papers since bankruptcy fraud is a felony. Social security payments should be exempt.
Answered on Apr 01st, 2013 at 2:48 AM
The Trustee has broad powers to investigate the veracity of a debtor.
What they do in any given case will vary.
Yes, Social Security is considered income (for parts of your bankruptcy) but it is not reported on your Means Test.
If you are thinking about "hedging" on your income, my advice is "Don't".
Answered on Feb 26th, 2013 at 1:14 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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I believe they use what is provided to verify income.
Of course, they have your last 2 years' income tax returns & 6 months of bank statements & anything else they want.
Social Security benefits do not count as income on the means test but are included in your budget.
Answered on Feb 26th, 2013 at 1:14 PM
To fully answer your questions, you should hire a bankruptcy attorney, who should explain all of these basics to you.
Answered on Feb 26th, 2013 at 1:51 AM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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Social security is included as income. The court requires actual proof of income for the means test.
Answered on Feb 25th, 2013 at 5:57 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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They could but they rely mostly on your statement with proof.
Answered on Feb 25th, 2013 at 5:57 PM
The office of the US Trustee performs a preliminary background check on all cases that have been filed and may investigate further if there is an suspicions of incorrect or inconsistent information. The debtor is required to produce records to substantiate their income. Social security is included on Schedule I as part of the income portion of the budget but is allowed to be excluded on the Means Test.
Answered on Feb 25th, 2013 at 5:56 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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See a bankruptcy attorney, they make or may in investigate but will assume that all information is provided and accurate, if it is not it is federal bankruptcy fraud, a criminal offense.
Answered on Feb 25th, 2013 at 5:56 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Yes the trustee and/or the US Trustee will review support documents (bank statements, tax returns, pay stubs). Social security is included in I, but not in the means test. Please make sure to talk with a good bankruptcy attorney for help.
Answered on Feb 25th, 2013 at 5:54 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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These are questions for your attorney and answers may vary in the various Florida Districts.
Answered on Feb 25th, 2013 at 5:54 PM