Legal Questions for our Verified Lawyers #4

[ohreally]

Yes, in this type of bankruptcy loans should be rare and approved by the Trustee. I very much doubt Casey is taking any loans. This is probably a gift from one of her many gullible "supporters." Just because people are willing to give you gifts if you ask nicely and bat your eyes doesn't mean you're not bankrupt, though. IMO this will not be changed to a Chapter 11 because she does not have any money or income that she's demonstrably ENTITLED to--just money that people feel like giving her for now.

Thank you for answering my questions.

 

[ThinkTank]

Lawyers - would you please explain to us in layman's terms what this TES settlement means?

Casey does NOT give TES $ 75,000, right?
TES merely gets a tax write-off of $ 75,000, right?

Why didn't TES demand the full $ 100,000 plus, as a tax write-off?
Why did they settle for $ 75,000 write off?

Isn't TES a non-profit, tax-free entity - they don't pay taxes?
Why would they want a tax write off?

Casey had to agree that TES could be considered a Creditor in her bankruptcy case, right?
Casey wins because TES cannot pursue any lawsuit against her, ever again, and they cannot take her deposition. This ends the TES lawsuit.

And TES had to agree to let the debt be "dischargeable"/dismissed in the bankruptcy case, right?

The legal wrangling up to this settlement agreement had been over whether or not TES even had a civil case against Casey, and whether or not it was dischargeable in the bankruptcy case.

http://www.orlandosentinel.com/news...quusearch-settlement-20131021,0,4221525.story

In a settlement filed Friday, EquuSearch agrees to drop its complaint. Anthony agrees to allow EquuSearch to claim $75,000 as a creditor.

The group may get a portion of whatever Anthony's bankruptcy trustee can find in her estate, but the rest of the $75,000 debt is now set to be wiped away when her bankruptcy concludes.

-------------------

https://docs.google.com/file/d/0B7DjeAMt_BpIU0Zyc1k0TWxhQ0k/edit?usp=sharing


10/18/2013
Motion for Approval of Compromise Settlement With Texas Equusearch Mounted Search and Recovery

I think this TES settlement means Casey will get her bankruptcy and this $75,000 will be cleared as a debt owed to TES as a Creditor.

Then TES can file a $75,000 loss of revenue tax write off -- much like Baez will do with the money he is claiming in her bankruptcy case.

 

[?noanswer]

I reviewed TES's tax form for the year 2012 to see if there was a place to charge off the bankruptcy, and did not see anything. Course I could have missed it!

http://www.guidestar.org/


JMO

 

[AZlawyer]

Lawyers - would you please explain to us in layman's terms what this TES settlement means?

Casey does NOT give TES $ 75,000, right?
TES merely gets a tax write-off of $ 75,000, right?

Why didn't TES demand the full $ 100,000 plus, as a tax write-off?
Why did they settle for $ 75,000 write off?

Isn't TES a non-profit, tax-free entity - they don't pay taxes?
Why would they want a tax write off?

Casey had to agree that TES could be considered a Creditor in her bankruptcy case, right?
Casey wins because TES cannot pursue any lawsuit against her, ever again, and they cannot take her deposition. This ends the TES lawsuit.

And TES had to agree to let the debt be "dischargeable"/dismissed in the bankruptcy case, right?

The legal wrangling up to this settlement agreement had been over whether or not TES even had a civil case against Casey, and whether or not it was dischargeable in the bankruptcy case.

http://www.orlandosentinel.com/news...quusearch-settlement-20131021,0,4221525.story

In a settlement filed Friday, EquuSearch agrees to drop its complaint. Anthony agrees to allow EquuSearch to claim $75,000 as a creditor.

The group may get a portion of whatever Anthony's bankruptcy trustee can find in her estate, but the rest of the $75,000 debt is now set to be wiped away when her bankruptcy concludes.

-------------------

https://docs.google.com/file/d/0B7DjeAMt_BpIU0Zyc1k0TWxhQ0k/edit?usp=sharing


10/18/2013
Motion for Approval of Compromise Settlement With Texas Equusearch Mounted Search and Recovery

I think this TES settlement means Casey will get her bankruptcy and this $75,000 will be cleared as a debt owed to TES as a Creditor.

Then TES can file a $75,000 loss of revenue tax write off -- much like Baez will do with the money he is claiming in her bankruptcy case.

Basically, the settlement means that TES caved. It gets a $75,000 "claim" in the bankruptcy, but is there any money in the bankruptcy estate to pay that claim? No. So it gets $0 most likely. You're correct that as a non-profit the tax effect was probably not a motivating factor.

I reviewed TES's tax form for the year 2012 to see if there was a place to charge off the bankruptcy, and did not see anything. Course I could have missed it!

http://www.guidestar.org/


JMO

TES didn't even have the useless bankruptcy claim for $75,000 until just now, and hasn't had its claim discounted to $0 yet, so how could they have written this off last year?

 

[watcher9]

We do know that there is $25,000 in the case since she paid for her story.

Would it be divided up evenly or would that amount just cover court costs, the judge and the trustee? If there were anything leftover, wouldn't part of that go to TES? Or, would the next in line be the attorneys and straight back to FCA?

 

[ThinkTank]

We do know that there is $25,000 in the case since she paid for her story.

Would it be divided up evenly or would that amount just cover court costs, the judge and the trustee? If there were anything leftover, wouldn't part of that go to TES? Or, would the next in line be the attorneys and straight back to FCA?

I am not a lawyer -- so lawyers would you please answer here.

It is my understanding that the $ 25,000 is strictly for one purpose - "Intellectual Property Rights" which Casey Anthony bought from the Trustee, and went into a bank account handled by the Trustee, as stated in the judge's ORDER dated July 31, 2013.

Doesn't this $ 25,000 go solely to the Trustee and his attorney?
The Trustee and his attorney have been working since January 25, 2013 on this case -- what is your rough estimate of the payment for their time going to be? More than $ 25,000 ?

And what happens to the court ordered costs/debts, and the IRS debt?

(8) CLAIMS FILED by June 24, 2013

- Adventist Florida Hospital - $ 200 [from Nov 2007 to present] Did NOT file a CLAIM in bankruptcy case

- Alliance One Collection Agency for STATE of Florida debt of $ 4,153.91
Orange County Clerk of Courts - CRIMINAL FINES - drivers lic suspended - Did NOT file a CLAIM in bankruptcy case

- Ambulance added 4/4/2013 $ 921.15 FILED CLAIM (1)

- AT&T Mobility - Collection Agency - $ 1,403.32 - Did NOT file a CLAIM

- Baez - $ 500,000 - $ 397, 431.78 FILED CLAIM (7)

- Florida Dept Law Enforcement - $ 61,505.12 [court costs - Court Ordered by Judge Perry] - Did NOT file a CLAIM

- Internal Revenue Service - $ 68,540 - -$ 80,855.11 FILED CLAIM (3)

- Metropolitan Bureau of Inv - $ 10,283.90 [judgment for Inv Fees & Costs - Court Ordered by Judge Perry] - Did NOT file a CLAIM.


- Orange County Florida Clerk of Court - $ 495.00 [court costs] - Did NOT file a CLAIM

- Orange County Sheriff's Office - $ 145,660.21 FILED CLAIM (2)
[judgment for Inv Fees & Costs - Court Ordered by Judge Perry]

- State of Florida - $ 50.00 FILED CLAIM (4)
[Ofc State Atty - judgment for Inv Fees & Costs]
Court Ordered Costs of Prosecution

- Tribute MasterCard - $ 1,250 - Did NOT file a CLAIM

- Roy Kronk - civil suit - FILED CLAIM (8) no amount claimed

- Tim Miller/Texas EquuSearch - civil suit - FILED CLAIM (5) exceed $ 100,000 - settled for $ 75,000 dischargeable CLAIM

- Zenaida Gonzalez - civil suit - FILED CLAIM (6) no amount claimed


Interim Report Period Ending 09/30/2013.
(Meininger, Stephen) (Entered: 10/25/2013)

https://docs.google.com/file/d/0B7DjeAMt_BpIM2V3VU9oRVZnU1E/edit?usp=sharing&pli=1

Trustee reports as of Sept 30, 2013 – Casey has assets valuing $ 1,084.00

Casey’s attorney David L. Schrader paid the Trustee $ 25,000.00 on August 29, 2013, which the Trustee put into a bank account, and paid out $ 34.75 in bank fees.

The money was paid by Casey’s attorney as stated in the ORDER dated July 31, 2013.

[Nothing is stated about where Casey Anthony got $ 25,000.00]

 

[ThinkTank]

Lawyers - another question

Will Casey Anthony owe a tax on that $75,000.00 claim from TES?

Is it true that the IRS is automatically notified when someone enters into a debt-settlement with a creditor?

 

[ThinkTank]

Lawyers - what does this mean?
Why did Casey Anthony's bankruptcy attorney David Schrader take the extra step to file an official document stating that he is representing her "pro bono" in the Zenaida, Kronk, and TES cases?

He has been her attorney since the filing of bankruptcy on January 25, 2013, and has always been working "pro bono".

Why does he file this official document now, this late in the game?
What purpose does it serve?

Pro Bono Representation of Debtor by David L. Schrader
Filed by David L Schrader on behalf of Debtor Casey Marie Anthony.
(Schrader, David)
(Entered: 10/29/2013)

[no documents attached]

same entry posted in Zenaida and Kronk and TES Adversary Proceeding

more in the Bankruptcy thread:
[ame="http://www.websleuths.com/forums/showpost.php?p=9940526&postcount=1174"]Websleuths Crime Sleuthing Community - View Single Post - Bankrupt Casey Anthony interviewed by KPHO CBS in Phoenix #2[/ame]

 

[AZlawyer]

We do know that there is $25,000 in the case since she paid for her story.

Would it be divided up evenly or would that amount just cover court costs, the judge and the trustee? If there were anything leftover, wouldn't part of that go to TES? Or, would the next in line be the attorneys and straight back to FCA?

I am not a lawyer -- so lawyers would you please answer here.

It is my understanding that the $ 25,000 is strictly for one purpose - "Intellectual Property Rights" which Casey Anthony bought from the Trustee, and went into a bank account handled by the Trustee, as stated in the judge's ORDER dated July 31, 2013.

Doesn't this $ 25,000 go solely to the Trustee and his attorney?
The Trustee and his attorney have been working since January 25, 2013 on this case -- what is your rough estimate of the payment for their time going to be? More than $ 25,000 ?

And what happens to the court ordered costs/debts, and the IRS debt?

(8) CLAIMS FILED by June 24, 2013

- Adventist Florida Hospital - $ 200 [from Nov 2007 to present] Did NOT file a CLAIM in bankruptcy case

- Alliance One Collection Agency for STATE of Florida debt of $ 4,153.91
Orange County Clerk of Courts - CRIMINAL FINES - drivers lic suspended - Did NOT file a CLAIM in bankruptcy case

- Ambulance added 4/4/2013 $ 921.15 FILED CLAIM (1)

- AT&T Mobility - Collection Agency - $ 1,403.32 - Did NOT file a CLAIM

- Baez - $ 500,000 - $ 397, 431.78 FILED CLAIM (7)

- Florida Dept Law Enforcement - $ 61,505.12 [court costs - Court Ordered by Judge Perry] - Did NOT file a CLAIM

- Internal Revenue Service - $ 68,540 - -$ 80,855.11 FILED CLAIM (3)

- Metropolitan Bureau of Inv - $ 10,283.90 [judgment for Inv Fees & Costs - Court Ordered by Judge Perry] - Did NOT file a CLAIM.


- Orange County Florida Clerk of Court - $ 495.00 [court costs] - Did NOT file a CLAIM

- Orange County Sheriff's Office - $ 145,660.21 FILED CLAIM (2)
[judgment for Inv Fees & Costs - Court Ordered by Judge Perry]

- State of Florida - $ 50.00 FILED CLAIM (4)
[Ofc State Atty - judgment for Inv Fees & Costs]
Court Ordered Costs of Prosecution

- Tribute MasterCard - $ 1,250 - Did NOT file a CLAIM

- Roy Kronk - civil suit - FILED CLAIM (8) no amount claimed

- Tim Miller/Texas EquuSearch - civil suit - FILED CLAIM (5) exceed $ 100,000 - settled for $ 75,000 dischargeable CLAIM

- Zenaida Gonzalez - civil suit - FILED CLAIM (6) no amount claimed


Interim Report Period Ending 09/30/2013.
(Meininger, Stephen) (Entered: 10/25/2013)

https://docs.google.com/file/d/0B7DjeAMt_BpIM2V3VU9oRVZnU1E/edit?usp=sharing&pli=1

Trustee reports as of Sept 30, 2013 – Casey has assets valuing $ 1,084.00

Casey’s attorney David L. Schrader paid the Trustee $ 25,000.00 on August 29, 2013, which the Trustee put into a bank account, and paid out $ 34.75 in bank fees.

The money was paid by Casey’s attorney as stated in the ORDER dated July 31, 2013.

[Nothing is stated about where Casey Anthony got $ 25,000.00]

The Trustee's attorney's fees will get paid first as an "administrative claim"--frankly, I doubt there will be anything left over.

Lawyers - another question

Will Casey Anthony owe a tax on that $75,000.00 claim from TES?

Is it true that the IRS is automatically notified when someone enters into a debt-settlement with a creditor?

The IRS would be notified if someone files a 1099, but TES would be the one getting the income, not Casey.

Or did you mean will Casey owe a tax from her RECEIPT of the $75,000? That depends on where she got it and why.

Lawyers - what does this mean?
Why did Casey Anthony's bankruptcy attorney David Schrader take the extra step to file an official document stating that he is representing her "pro bono" in the Zenaida, Kronk, and TES cases?

He has been her attorney since the filing of bankruptcy on January 25, 2013, and has always been working "pro bono".

Why does he file this official document now, this late in the game?
What purpose does it serve?

Pro Bono Representation of Debtor by David L. Schrader
Filed by David L Schrader on behalf of Debtor Casey Marie Anthony.
(Schrader, David)
(Entered: 10/29/2013)

[no documents attached]

same entry posted in Zenaida and Kronk and TES Adversary Proceeding

more in the Bankruptcy thread:
Websleuths Crime Sleuthing Community - View Single Post - Bankrupt Casey Anthony interviewed by KPHO CBS in Phoenix #2

Possibly, the Trustee or some creditor questioned the need for her to have multiple attorneys and expressed a concern that she might have some undisclosed funds that she was using to pay counsel. Just a guess, though.

 

[ZsaZsa]

Are bankruptcies ever denied?
Do you think Casey's claim will pass the sniff test? Surely the Trustee must question how she keeps coming up with cash at convenient times, $25K to protect her life story for example. Is that acceptable ?

 

[AZlawyer]

Are bankruptcies ever denied?
Do you think Casey's claim will pass the sniff test? Surely the Trustee must question how she keeps coming up with cash at convenient times, $25K to protect her life story for example. Is that acceptable ?

Yes, bankruptcy relief can be denied. No, I don't think Casey will have much trouble getting relief. She has no obvious source of income other than "the kindness of strangers."

 

[conLima]

Is it not a Conflict of Interest that Jonathan Kasen and Debra Ferwerda have both been attorneys for Dominic Casey and also for Casey Anthony? I am truly puzzled as to how a defendant and a witness can have the same attorneys involved...it seems there is overlap between the various cases. Thank you for answering this question.

 

[AZlawyer]

Is it not a Conflict of Interest that Jonathan Kasen and Debra Ferwerda have both been attorneys for Dominic Casey and also for Casey Anthony? I am truly puzzled as to how a defendant and a witness can have the same attorneys involved...it seems there is overlap between the various cases. Thank you for answering this question.

It's not a conflict unless their interests differ, and maybe not even then (e.g., if they differ at different times).