QUESTION

What is best step for us is it marriage before or after bankruptcy?

Asked on Apr 10th, 2013 on Bankruptcy - Arizona
More details to this question:
My fiance and I want to get married. He is trying to file a bankruptcy with great difficulty. He hasn't had to file taxes for many years due to no income. He was taking care of his grandmother and didn't need income. He has paid his lawyer, but the lawyer hasn't filed (six months later) and will not return his money. This is turning into a mess. Can we get married before he files or do we need to wait? Also, can he get the money back from the lawyer?
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7 ANSWERS

Bankruptcy Law Attorney serving Austin, TX at Law Office of Susan G. Taylor
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I'd need more details to adequately advise you. But, if you marry, both incomes will be included when determining chapter 7 bankruptcy eligibility. If you paid the attorney the filing fee, that portion he should have held in trust to refund to you. The remainder depends on how much effort he has put into your case.
Answered on Apr 16th, 2013 at 1:32 AM

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Bankruptcy Attorney serving Livonia, MI at Charles J. Schneider, P.C.
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After.
Answered on Apr 11th, 2013 at 12:52 AM

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Debt Settlement Attorney serving San Diego, CA at Law Offices of Kathryn Tokarska
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If you get married that could change the Means Test analysis and without knowing details about the financial situation it's hard to tell whether this will be a negative thing for bankruptcy purposes. Also once married, the debtor, even if he files alone, must disclose all community property (that would include all income earned by both of you, bank accounts for both of you if funds inside consist of your wages during marriage) and any other property acquired after the marriage. He would also need to provide copies of your pay checks and bank accounts to the Trustee. It basically makes for a bit more work in the petition, could potentially cause problems, and it would not be unreasonable for the attorney to ask for higher fees based on this change of circumstances. If you are co-habitating and sharing expenses, then the petition would only disclose what share you contribute to the household expenses so there is less disclosure. If the attorney is not being responsive, it may be time to get a different one, assuming the reason for delay is not because your fiance has failed to provide the attorney with the documents needed to prepare the petition. We are unable to prepare the petition without cooperation from our clients and depending on the case they may be extensive documents needed to proceed: tax returns, bank statements, income documentation, etc. As far as legal fee refunds, retainers are not refundable but anything paid after the initial retainer can only be kept by the attorney if he/she can substantiate keeping it based on work performed thus far in the case on a reasonable hourly fee schedule. If he wants to get aggressive with the attorney he can tell the attorney that although he doesn't really want to do this he feels he is not getting what he paid for and is considering filing a complaint with the State Bar. Maybe that will either inspire the attorney to act or provide him with good explanation for causes of delays. If you still can't get satisfaction then certainly filing a complaint with the bar is an option and it is time to get a different attorney.
Answered on Apr 10th, 2013 at 3:53 PM

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Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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There is no hard & fast rule to answer your question without knowing more about your financial situation. If you make a decent income, getting married could prevent your boyfriend from being eligible to eliminate his debts in a chapter 7. If the work is not being performed on the bankruptcy by the attorney retained, you can contact the State Bar to file a complaint and also contact the office of the United States Trustee. Either of these organizations can investigate the issue and can impose serious penalties on the attorney for failing to properly perform.
Answered on Apr 10th, 2013 at 2:26 PM

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In order for an individual to be eligible to file a chapter 7 bankruptcy, the individual or individuals, if married, must pass a means test. The means test is based on the debtor's last 6 months of income and expenses. If your fiance and you are able to pass the means test, after you are married, then from a legal standpoint it should not matter. As for the attorney fees, you might consider filing a small claims action against the lawyer prior to bankruptcy or a motion to compel the lawyer to disgorge the fees after you file.
Answered on Apr 10th, 2013 at 2:26 PM

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Bankruptcy Attorney serving Kalamazoo, MI at Debt Relief Law Center
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Yes, he should get the money back from the attorney. If refused, consider filing a grievance against the attorney. Regarding marriage, generally is better having a filing date before the marriage, if possible.
Answered on Apr 10th, 2013 at 2:25 PM

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Bankruptcy Attorney serving Phoenix, AZ at Law Office of D. L. Drain, P.A.
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As to the attorney, make a written demand for the return of the retainer. If you do not receive some or all of the funds, then contact the State Bar where the attorney is licensed. As to your question about the timing of the filing, normally I advise my clients to file before marriage, not after. As to filing bankruptcy, most people, including inexperienced attorneys, do not understand that bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Apr 10th, 2013 at 2:25 PM

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