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Cake day: October 29th, 2023

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  • NAL, but BK can vary by state in regards to discharge and there are different types of BK. In Chapter 7, there can be a look back period where payments to interested parties and lawyers can be “carved back” by the trustee. You are just a vendor, though, who had been paid. It seems more like a problem for your client than for you. If they was using funds in BK for purposes beyond BK, such as setting up a new company, they could be denied his BK filing.

    I would refund the balance left on their account, with a note that you are pausing his account until the new year, but expenses you have incurred are non refundable. This might get the payment below a threshold for review y the trustee and would keep you from being out money. Worst case scenario is that the court comes back and request repayment of the remainder of your fees.