Legal Question in Bankruptcy in California

Should real property be included on schedule C of the BK forms and on the expenditure or income form would that include the difference of rental income (mortgage - rent and expenses) depending on if it is positive or negative.

And finally, what recourse do we have if our attorney quit after submitting the Bankruptcy Petition but did not submit any of the schedules.


Asked on 10/22/09, 7:35 pm

1 Answer from Attorneys

David Gibbs The Gibbs Law Firm, APC

I guess my first question is why did your attorney quit? Attorneys are not allowed to unilaterally withdraw from cases, particularly in the Federal Court system. They either have to get from you a substitution of attorney (a document that tells the court you agree to his withdrawing and that either your new attorney will be representing you, or you are electing to proceed "pro se" without an attorney), or they must file a motion seeking to be relieved as your counsel. I don't believe there are any Bankruptcy Courts that would allow an attorney to withdraw unless he or she has a very sound reason for doing so. Not getting paid, by the way, is probably not grounds for withdrawal.

In any event, from your question, your situation is too complex to answer in this forum. I would suggest that you find a new attorney immediately, and he or she can file a motion with the Bankruptcy Court to extend the 15 days by which your schedules must be filed. It is better to do that, than to file schedules that are incomplete or incorrect. If you simply cannot afford an attorney, call Legal Aid Society for your county, or at a minimum, go read the Nolo Press book on bankruptcy. Although they cannot substitute for qualified advice, at least it may help you better understand what you are doing. As for your questions about what goes where, one big hint - schedule C is where you list your exemptions for real property listed on Schedule A, and personal property listed on Schedule B. The properties themselves need to be properly listed on A and B. ALL current income, regardless of source, should be set forth in gross amounts on Schedule I, and ALL current expenses in gross amounts should be set forth on Schedule J. Don't net anything out, unless the question asked on the form specifically asks for net amounts.

For your attorney, you can contact the State Bar and file a complaint. You can retain an attorney to pursue a potential legal malpractice claim; but before you do either, look at why he or she quit. One reason I see Bankruptcy attorneys unilaterally withdraw is that from time-to-time (and I am not saying this is your situation) people try to mislead their attorney or lie about assets, income, expenses or liabilities. An attorney put in that position might quit. Otherwise, I can't speculate as to why the attorney quit.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

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Answered on 10/27/09, 8:02 pm


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