By David P . Leibowitz , Esq . Chief Legal Officer Officer , Upright , UpRight Law Law Chicago , Illinois , Illinois

Check the real estate records

Client knows the company to which he makes mortgage payments – the servicer . However , schedule the mortgagee of record too , whether it ’ s MERS or anyone else . That means you should check the official deed records . And while you ’ re there , you might find out other things which require your attention :

· Modification agreements

· Judgment liens

· Tax liens

· Releases of the mortgage you thought was there ( more frequently than you might imagine )

· Unrecorded or defective mortgages ( which a trustee might avoid )

· Even transfers by your debtor to someone else .

Know these things before you file , if only to avoid liens impairing the debtor ’ s homestead exemption . Do this the first time around , not years later when the debtor wants to refinance .

Check the debtor ’ s bank records

Schedules and statements of financial affairs must be accurate . How can you assure accuracy if you don ’ t know the debtor ’ s expenditures during the three months prior to filing ? How can you address preferential payments to insiders without examining the bank statements within a year prior to filing ? Avoid finding out this happened when the trustee asks the question at a 341 meeting .

Be sure that the balance you schedule on the petition is the balance in the bank as of the date of the petition . This information is available online . And it is required information under Bankruptcy Rule 4002 ( b )( 2 )( B ) anyway .

Other important information can be gleaned from the debtor ’ s bank records :

· Did the debtor buy something recently which should be scheduled ?

· Does the debtor make payments to purchase or repair an asset the debtor the debtor doesn ’ t own or failed to mention to you ?

· Does the debtor spend money regularly on something which is not budgeted ?

· Does the debtor spend money for a storage facility which is not scheduled ? What ’ s in that storage facility anyway ?

· Did the debtor transfer money from or to bank accounts other than those you know about ? If so , you should ask questions about them too .

Check the local court dockets and national PACER

Is the debtor the plaintiff in a case she forgot to mention to you ? Failure to schedule the case could lead to denial of discharge , loss of a potential exemption , judicial estoppel to pursue the claim or worse . Recently we observed a debtor who was a party to a significant personal injury case in multi-district district litigation in Texas . You never know . Check your local docket , state and federal and check national PACER . It can ’ t hurt and it only takes a minute .

Check for unclaimed funds

You would be amazed how frequently your debtor has unclaimed funds with the state treasurer . That ’ s another search that only takes a minute .

Read the Debtor ’ s income tax returns

Is there income from a source you did not know about , such as dividends ? Does the debtor have rental income from real estate you didn ’ t know about ? Does the debtor depreciate assets which were not scheduled ? Did the debtor get an income tax refund last year ? If so , does the debtor expect an income tax refund next year ? If so , schedule that anticipated income tax refund and exempt it to the extent permissible under your state or federal exemption scheme . Did the prior year ’ s refund go to an account you don ’ t know about ?

Check the Debtor ’ s insurance

Did the debtor schedule particular assets in the homeowner ’ s policy ? What sort of valuation did the debtor attach to those assets ? Does the debtor still have those assets ? Does the debtor have any claims outstanding under any insurance policy ? Does the debtor have some cash surrender value ? Is it exempt ?

30 CONSUMER BANKRUPTCY JOURNAL Fall 2016 National Association of Consumer Bankruptcy Attorneys