How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Phillips Esq. Your Own Question

Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 12929
Experience:  B.A.; M.B.A.; J.D.
16551887
Type Your Bankruptcy Law Question Here...
Phillips Esq. is online now
A new question is answered every 9 seconds

I am a creditor in a Chapter 13 case. The debtor has a bankruptcy

Resolved Question:

I am a creditor in a Chapter 13 case. The debtor has a bankruptcy lawyer and a general lawyer for another case, and debtor had property (trailers) that was not disclosed on any schedule of assets. I know that the schedule of assets is required to compute the best interest of creditors number. The debtors transferred one of their trailers to their general lawyer in exchange for unpaid legal fees. The general lawyer has recently claimed that permission to take her clients trailer was granted by her clients bankruptcy lawyer (outside of the Court). Is transfer of real property like this during a Chapter 13 permissible when the plan had not been confirmed and the best interest of creditors number was trying to be established by my side? After the transfer of the property the client converted their case to a Chapter 7 liquidation.
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 4 years ago.

Is transfer of real property like this during a Chapter 13 permissible when the plan had not been confirmed and the best interest of creditors number was trying to be established by my side?

 

Response: No, it is not permissible, without prior authorization of the Bankruptcy Court. This kind of property transfer must be approved by the Bankruptcy Court. The debtor's general attorney is like any other creditor but has received a preferential treatment of his debt. The Chapter 13 trustee may void this transfer as preference under 11 U.S.C. Section 547 (a). You of course need to file objection to the transfer with the Bankruptcy Court and if necessary object to the debtor getting discharge of his debts in bankruptcy if he does not recover the trailer from his general attorney.

 

http://doney.net/bkcode/11usc0547.htm

 

Expert:  Phillips Esq. replied 4 years ago.

Sorry, it should be 11 U.S.C. Section 547 (b).

 

http://doney.net/bkcode/11usc0547.htm

 

Customer: replied 4 years ago.
You didn't address my questions fully, please clarify. Your advice is to ask the 13 trustee to void the transaction but this was converted to a chapter 7 so there is a new trustee. Do the same rules apply because the transfer happened during the purview of the 13 trustee, which is now before the 7 trustee, who may or may not want to bother with going through the steps of voiding the transaction?
Expert:  Phillips Esq. replied 4 years ago.

Ok. Thanks for the clarification.

 

You can bring this matter up to the Bankruptcy Court by filing objection to the bankruptcy case, by pointing out to the Bankruptcy Court that a preferential transfer was made during the insolvency of the debtor; that the debtor transferred her trailer to pay her non-bankruptcy attorney during his prior Chapter 13 case without the prior authorization of the Bankruptcy Court. Since the case has been converted to a Chapter 7, you should bring it to the attention of the Chapter 7 Bankruptcy Trustee who may or may not be interested in avoiding the transfer based on the value of the trailer. You should also contact the Office of the US Trustee in your Region about this transfer. The Office of the US Trustee acts as the supervisor to Chapter 7 Trustees.

 

In addition, you may file objection to general Discharge of the Debtor pursuant to 11 U.S.C. Section 727:

 

http://doney.net/bkcode/11usc0727.htm

 

 

 

Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 12929
Experience: B.A.; M.B.A.; J.D.
Phillips Esq. and other Bankruptcy Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.