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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37414
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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Socrateaser: Regarding trustee & his attorney in Chapter 7. I

Customer Question

Regarding trustee & his attorney in Chapter 7.
I have an East Coast law suit filed against a person for violating building codes and who built his house on top of my deeded easement to the beach. The taking devalued my property for the benefit of his property. In so doing he not only violated the local building codes but also violated the automatic stay by taking property of my BK estate.

Brief history: Very rich person wanted my property. I did not want to sell. This person - a previous tenant at this property - colluded with my then husband to buy the property. Both my ex deceased husband and my rich ex tenant colluded together to buy the property out from under me and my son (the real owner). They both cut off funds due to me to force foreclosure and concocted an indemnity agreement to take most of the funds from the offer to buy - to be set aside to fight my son's rights to the property. If sold at that time there would have been a deficit and not enough funds to pay the IRS. We were no match for the attack nor did I understand it at the time.

Years of litigation protecting what I already owned continued until they forced me into Chapter 7 with a trustee. The Trustee wants money from a sale & therefore he has stalled the litigation on the porperty until he can sell the property under value to the very person who created the building violations and the violation of the automatic stay. When I had funds and had an attorney - they took weeks preparing the Sanctions motion against the taking of property of the BK estate. Its all been ignored.

The trsutee's idea since taking over my estate is to sell the property before the conclusion of the local building violations. the trustee already declared the sancitons motion for taking property of the BK estate Zero value - and the trustee wants to sell ASAP which would render the existing local building violations moot if property is sold.

NOW - the trustee's attorney has made a new plan. He has filed documents - like an invitation to the same person who wants to buy the property - to come and buy - we have dropped the value and THE EXISTING LAW SUIT GOES WITH THE LAND.
The perpetrator gets to own his own law suit when he buys the property Which hs has tried to do for year.
The buye will not use his own well known name - there will be a corporation or a straw person to present an offer.
Please advise me if it is true if the law suit runs with the land - black letter law and how can I respond to the trustee's plan. Some words of wisdom I can use.
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 4 years ago.
The statement that a civil action does or doesn't "run with the land" is irrelevant, because "a debtor's prepetition causes of action and claims for relief are legal interests in property, includible in the bankruptcy estate." See Smith v. Arthur Andersen LLP (9th Cir. 2005) 421 F.3d 989, 1002.

In other words, if the trustee wants to transfer the cause of action concerning the easement along with the real property, then the trustee can do so.

Hope this helps.

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Customer: replied 4 years ago.

But this action by the trustee's attorney would cause a huge loss to the BK estate - enough to cause a reason to sell my residence.


the trustee's recent action - lowering the value of the property for sale - contrary to all other ocean front comporables per the appraiser who gave quick sold comporables as a consultant because I needed the info ASAP.


The huge devaluation by the trustee's attorney was to create a short fall between the assets and the debts (mostly my deceased ex husband's attorneys claim)


The huge devaluation was concocted to show a shortage - just enough to have an excuse to sell the family home.

There must be some rights of mine other than filing a motion to remove the trustee and his attorney who is friends and has been in front of this Judge for years. The Judge would never remove the trustee & his attorney.


Expert:  socrateaser replied 4 years ago.
The trustee must provide a noticed hearing to sell estate property outside of the ordinary course of business. Bankr. Code 363(b)(1). You can object to the sale -- but, unless your grounds are that the trustee is engaged in some sort of grand conspiracy to obtain your property for the benefit of an outside party, I don't see why the court would find your reasons compelling, since they won't affect your ultimate outcome in the case.

Which takes you right back to asking the court to remove the trustee.

Hope this helps.
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37414
Experience: Attorney and Real Estate Broker -- Retired (mostly)
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