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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2897
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Hello. This is related to my previous bankruptcy question.

Customer Question

Hello. This is related to my previous bankruptcy question. I promise to answer immediately.
As from the recent questions, I have filed a lawsuit against my previous employer, in which the Bankruptcy Estate is now Interested Party. The Trustee and I have concluded that I will continue pro se. The trustee and I have also negotiated a 50-50 split between us until he reaches the settlement amount, in the event the Employment lawsuit results in my favor.
I haven’t signed anything yet, but I have contracts for my review, due Monday. My questions are,
1) The trustee is requesting about $5500 over my actual debt, (12.4% of the debt) be allotted to him, in any awards from the other lawsuit (included at the rate of 50-50.) Could I dispute (negotiate) this amount, or is his commission protected and reasonable?
2) In his Motion to Approve Sale of Non Exempt Causes of Action he states our agreement of a 50-50 split up to the X dollar amount. I don’t want that information in the hands of the Defense nor in the hands of a jury when they’re deciding my settlement. Is he allowed to omit the exact dollar amount from the public motion and just keep it within the contract between him and me only?
3) Lastly the Trustee states in his Motion the debtor did not schedule the suit in her schedules, nor did she claim any exemptions for these claims,’ to paraphrase. I did send notice of the lawsuit to the bankruptcy court and to the trustee prior to my hearing by mailing them an Amended Statement of Financial affairs. I’m concerned his statement that I did not schedule the lawsuit casts me in a bad light, as though I tried to conceal it from the Court. Is it a bad statement for me or is it just moot technical jargon?

Thank you.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Fran-mod replied 6 years ago.

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Customer: replied 6 years ago.
Hello, thank you yes please I would really appreciate having an expert look at my question and answer it to the best of his or her ability. Thank you for checking in, and please do have somebody answer my question, if possible> thanks again!
Customer: replied 6 years ago.

This has never taken so long. whoever answers im going to pay you $8.00 and then cancel, without comment. I have 2 other just answer accounts and i should just use one of those. i have never had such an issue with this service, and ive been using it for years. Please, somebody, JUSTANSWER please.

Expert:  Terry L. replied 6 years ago.
Hi and thank you for your question. In the future, you can request me to answer any further questions.
The trustee is allowed a certain award based on the amount of the asset recovered. The trustee is also allowed to request reasonable costs, attorneys fees, accounting fees etc to administer, and they will be set out in the final order before distribution occurs.

All the financial figures are required, since notice is given to all creditors of the distribution of the case, therefore, they will not redact that information. It is public information. Bankruptcy proceedings do not fall under any privacy rights, and the information is available to those who wish to find it.

Finally, as to the amendments. You listed the suit in an amended Statement of Financial affairs, which is great. However that is technically not a 'schedule' You should also file an amended Schedule B, since the suit is an asset. That is what the trustee is referring to. If there is an available exemption, you can file an amended C as well. This may or may not draw an objection from the Trustee, and would depend on where your case is at this point. I would file the amendments and then wait to see what the trustee says.

Thanks for your question, good luck to you.