What are the ramifications if I cannot pay a bankruptcy trustee order to give back money based on their findings of "preferential payment". Or if adversary proceedings are conducted and I do not have the capital to pay?
I am at the situation now where in trying to save my business, I sunk most of my cash into the business but now the bankruptcy trustee wants money I do not have. I can't pay them. My question is if I dont pay what can they do to me. Jail..Seize home, bank account etc..
this is a court procedure, if you do not have the money to pay him, you should have a bankruptcy attorney to represent you , and object to the trustees request, the trustee does not have the right to demand things from you without you having a chance to challenge him.
If you lose the case, the court can liquidate your own assets, either the home or bank accounts, but you need to fight it.
Last question, thanks for the help!
Will they allow me to make payment arrangements for the amount they are seeking? (or) is it pay us in full or suffer the consequences?
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