In a recent case in the Northern District of New York Bankruptcy Court, a debtor filed a Chapter 7 bankruptcy petition littered with errors. In addition to mistakes, there were all types of odmissions and inaccuracies in the bankruptcy petition.
The debtor, Mr. Castellano claimed that his attorney, Joseph H. Hobika, Jr. of the Law Firm of Callanen, Foley & Hobika, located in Utica, New York was responsible for the mistakes in the bankruptcy petition. Mr. Castellano stated in an affidavit, “I never had any intent to mislead or thwart any of my creditors.” He further stated “I have lost everything in the past three years with the exception of the birth of my son, life has been very difficult for myself and my family.”
Blame Attorney, Defense Fails
Judge Davis said that the attorney’s defense “must fail has a matter of law in this case,” and decided that Mr. Castellano was personally responsible for the information contained in the bankruptcy petition which he reviewed and signed. The Judge also said Mr. Castellano “has raised a plausible defense in that the petition was prepared in haste to avoid a wage garnishment rather than under a calculated plan to hide the truth.” The Judge went on to state “accordingly the debtor is entitled to a trial where the parties will have a full and fair opportunity to present their evidence, including live testimony, to the court on the issue of intent and the court will be able to gauge the credibility of the debtor.”
Mr. Hobika, the original lawyer who prepared the bankruptcy petition for Mr. Castellano in a recent interview stated the missing information was caused by “a software problem that was not immediately caught and the information in question had no bearing on the outcome of the case.”
If you find yourself in financial difficulty, filing a bankruptcy may be your best solution. Bankruptcy is a federal proceeding brought in the United States Bankruptcy Court. The Law Offices of Schlissel DeCorpo has filed hundreds of bankruptcies on behalf of our clients. We file both Chapter 7 and Chapter 13 bankruptcies. At our initial consultation we will discuss with you why filing bankruptcy may help you and the types of bankruptcies that are available to you. The filing of a bankruptcy can stop foreclosure proceedings from moving forward, eliminate second mortgages in some situations and stop all debt collection activity. Your credit can be reestablished after receiving a discharge in the bankruptcy. Contact us for a free consultation at 1-800-344-6431, 516-561-6645 or 718-350-2802.
