Question: re your last response - Is there any history or case law showing a debtor accusing and /or winning a sanctions motion against a trustee.
A: The court may remove a Chapter 7 trustee (other than the U.S. Trustee) from a particular case for "cause." 11 USCA § 324(a); Bernard v. Coyne (In re Bernard)
, 31 F.3d 842, at 845 (9th Cir. Cal. 1994).
Quoting Dye v. Brown (In re AFI Holding, Inc.)
, 355 B.R. 139 (B.A.P. 9th Cir. 2006):
Cause for removal of an appointed panel trustee under § 324(a) is not susceptible to sharp definition, but is determined on a case-by-case, totality-of-circumstances approach, subject to the bankruptcy court's broad discretion.
The bankruptcy court did not err in determining that Dye's lack of disinterestedness, as evidenced by having a "materially adverse interest to the interests of the estate or any class of creditors or equity security holders," was cause for her removal. Lack of disinterestedness, as § 324 cause, may also consist of an appearance of impropriety or the trustee's failure to make disclosures of connections, factors which were also properly considered by the bankruptcy court under its totality-of-circumstances approach.
Question: Is the trustee's percentage taken from the selling price of $1,200,000.00 or from the net proceeds from a sale?
A: Trustee compensation (and all other trustee obligations) is explained in the U.S. Trustee Chapter 7 Case Administration Manual. See this link.
Question: Can I present an offer in court to take a partner on the ownership of my home in order to pay off any net proceeds to stop a sale?
A: In Chapter 7, the trustee controls the property of the bankruptcy estate. The trustee can accept an offer from you for anything that he/she believes is in the estate's best interests. If you offer something that you believe is in the estate's best interests, and the trustee refuses, then that would be additional evidence that you could use to request that the court remove the trustee. But, as to bringing a separate motion to force the trustee to accept your offer, then that's not possible, and I can see why the trustee would be arguing with the judge to stay out of the trustee's job role, if this is what's been happening.
Question: Other than the First Amendment - what case law is there for me to cite in response to the trustee's attorney to put a gag order on me - the debtor - who had a solvent case?
A: I can't answer this without more info. What is your bankruptcy case no? And, what is the title of the motion in which the attorney requests that you not be permitted to speak?
I'll review the brief. Note: I cannot do this on a regular basis -- it's too time consuming, and it costs me money to download your pleadings. If you want me to consider this approach in the future, you may want to consider adding at least two zeros to your next bonus.
No pressure, of course.
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