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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2815
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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My husband and I filed for bankruptcy several years ago after

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My husband and I filed for bankruptcy several years ago after he lost his business. He had a business partner who owed money to a much larger company. that company sued to take our business away from us. They succeeded. At our personal bankruptcy hearing, my husband's former business partner showed up and purchased our shares in the business for pennies. We recently learned that said business partner won a lawsuit against the lawyers who represented our company - settling for over $400,00. Can we sue to recoup our losses - my husband says, no - since we are no longer shareholders. I say - we were shareholders when the business was taken - we ended up losing a $100,000 investment. Confusing!
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
Once you sold your investment during the bankruptcy, that was it. Now, there is a longshot around this. You should notify the trustee from your bankruptcy case. If the suit was not disclosed (and it was known that there could be a case)at the time you filed bankruptcy and this was not disclosed to the trustee, then the trustee may be able to vacate the sale, or requset those settlement funds. The proceeds would go to the creditors in the case, until 100% were paid off. If there are any additional proceeds from the sale of the stock after that is paid and all of the court fees, legal fees, etc. you could get what is left. Legal fees incurred by the trustee to do all this may eat up a chunk though. But Contact the trustee with this information, it may help! Good luck!
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