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dylatess, Attorney
Category: Bankruptcy Law
Satisfied Customers: 5142
Experience:  37 plus years of experience specializing in bankruptcy law
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We filed Chapter 7 Bankruptcy and it was final in 2005 before

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We filed Chapter 7 Bankruptcy and it was final in 2005 before the new laws were in effect. My question is: Our second mortgage lender were sued in a class action suit for charging, contracting or received illegal fees and/or interest. The claimants were awarded money for interest and punitive damages at court on 11/16/12. The original suit was filed back in 2004 (unknown to us). Our trustee received a check for $43,640 made out to her and my husband & I. Aren't we entitled to a portion of that money; especially because of punitive damages. What is the laws regarding this action and what are our rights?
Over 34 years, I have assisted my clients with debt problems having filed more than 32000 Chapter 7 and Chapter 13 Bankruptcy petitions.

You may be entitled to all or a portion of the money. But it takes a long time before you find out. that is because, if the bankruptcy estate has received assets, which it has, the trustee must first send out a notice to all of your creditors advising that money has come into the estate. And she will give them a set time to present their claim. Thereafter, after the claim period has closed, the trustee will file an accounting with the court asking for her attorney fee and a proposal of how your creditors will be paid. Whatever is left goes to you. Likewise, if the check was received at the end of last year, it may be another year before you hear anything from the trustee. And I would not call as that does not speed up your situation. Finally, the trustee cannot keep the money or any part of it without court permission. And the wheels of justice turn very slowly. Thanks in advance for understanding.
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