QUESTION
Does the trustee check and verify bank statements with your bank for actual amount?
Asked on Sep 04th, 2014 on Bankruptcy - California
More details to this question:
Do they verify tax returns with IRS considering that this a matter of confidentiality?
11 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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The trustee has 6 months of your bank statements and anything else he or she wants.
Answered on Sep 10th, 2014 at 5:37 AM
They may, but normally don't. You have to submit copies of your tax returns and bank statements for the month of filing. Remember, you are filing under penalty of perjury.
Answered on Sep 08th, 2014 at 8:03 PM
William Rhymer
Yes, sometimes to both questions. They have the authority but it depends on the particular Trustee and circumstances.
Answered on Sep 08th, 2014 at 6:52 AM
Code section 521(e)(2) requires the Debtor to provide to the Trustee a copy of their most recently filed federal tax return. Bankruptcy Rule 4002(c)(2)(B) requires production of a statement for all bank / investment accounts as of the date of filing. Most Trustees have their own document production requirements that are more expansive than those set forth in the Code or Rules. The Trustee will look at the documents that you produce. While there are some things that are confidential in bankruptcy, financial information certainly is not.
Answered on Sep 05th, 2014 at 7:02 PM
Yes, you must provide at least your most recent tax return and the bank statements from the month you filed.
Answered on Sep 05th, 2014 at 12:13 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You have waived confidentiality by filing bankruptcy and giving the trustee a copy of these documents under penalty of perjury. In my experience,if an attorney files your bankruptcy, trustees seldom verify the bank account information. They're more likely to verify IRS information. If you're considering giving fraudulent information to the trustee, I strongly advise against it. You're filing bankruptcy because you have financial problems; bankruptcy fraud will give you a criminal problem. If you think that your problems are bad now, wait until you have a felony conviction.
Answered on Sep 05th, 2014 at 12:13 PM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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I am speaking about the required documents in Southern District of California, other Districts may have different rules. We are required to provide along with some other things: copy of last filed tax return (if you haven't filed your returns Trustee may continue to hearing to give you time to file them and they'll want a copy) as well as bank statement for the month of the bankruptcy filing. Now, if your case is audited, a CPA firm contacts you and you must provide 6 month's worth of bank statements and explain any transactions inside them in excess of a certain amount, I believe it was $500 last time I had to do this. The "supporting documents" as they are called are provided directly to the Trustee who reviews them. They are NOT made available to the public.
Answered on Sep 05th, 2014 at 3:13 AM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Bank statements have to be turned over to the Trustee, so yes, the accounts are verified. In our jurisdiction, if someone files bankruptcy and they have not filed their taxes, the Trustee is notified of the failure to file. I am not aware that the Trustee verifies that the exact returns were the ones filed. However, under oath you are asked if it is a true and correct copy of the returns filed. But I would not recommend falsifying returns as that would constitute multiple crimes.
Answered on Sep 05th, 2014 at 3:12 AM
2 Awards
Yes. The trustee will ask for a minimum of 6 months bank statements, 2 years tax returns and 6 months paystubs.
Answered on Sep 05th, 2014 at 3:11 AM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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Most trustees require a copy of bank statements that cover the period before and after the bankruptcy filing. You are required to submit a tax return for the last period during which a return was due (2013). Some trustees require more than one prior tax return. You should redact all but the last four digits of your social security number when submitting tax returns.
Answered on Sep 05th, 2014 at 3:10 AM
Domestic Law Attorney serving Vista, CA
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Ralph L. Williams
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Probably not as to both questions, unless it appears that the statements have been altered or tax has not been filed. At the meeting of creditors the trustee usually asks while you are under oath if everything in your schedules are true and correct and if the tax return is a true copy of the tax returns filed.
Answered on Sep 05th, 2014 at 3:10 AM