Question for a Bankruptcy Judge or Bankrkutpcy attorney only:A Bankrutpcy Judge ordered mediation in a chapter 7 and told the attorney for the trustee that the trustee (holding debtor's funds) can pay for mediation expenses and legal fees for an attorney helping the debtor because it will benefit the Bankruptcy estate.The debtor has open pending claims against the trustee that have been suspended pending mediationIs there any case law or Bankdruptcy law from the 9th circuit that would provide reason or allow this payment from the trustee who is holding the debtor's money?
I really admire your perseverance. You are truly remarkable. In In re Walter, 83 B.R. 14 (9th Cir. B.A.P. 2/3/1988), the bankruptcy appellate panel wrote:
It seems that the law in the 9th Circuit is that the court has the authority to pay expenses of the debtor where there is some benefit to the ultimate preservation of the estate assets.
Hope this helps.
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Attorney and Real Estate Broker -- Retired (mostly)
Thanks for the positive remark & your response. I am going to use it today.
Yes - I requested an investigation because one of the many trustee lies stated my tenant was unauthorized because he wanted to sell asap & had to get rid of tenant.
I had to file all of the info proving the trustee & attorney knew of rental & I was paying the mortgage with my rentals.
Judge ordered mediation to get rid of my appeals. trustee's attorney didn't want medition just sell.
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