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So after filing for chapter 7 and it being dishcharged, the

Trustee decided that I owed...
So after filing for chapter 7 and it being dishcharged, the Trustee decided that I owed a bonus award that I received post filing but "had an interest" in prior to filing. Upon research I found case precedent that stated that this was true for a profit sharing payout. All of this information was provided at the 341 hearing and the BK was discharged 3 months later. 6 months after I get a demand letter from the Trustee's attorney stating I owe the trust the 3600. My filing attorney refused to help me and left me on my own. I agreed to paid the 3600 by january 15th and did so. The attorney drafted a letter to be signed that also included any admin costs as well as 12% of any tax refunds for the year 2012. I did not sign their lettter because it opened me up to whatever abrbirtrary amount they wanted to deamand I pay. The part that upsets me is that I delcared the profit sharing amount at the 341 meeting and they waited 180 days to make a demand, then started adding to it, willy nilly. I drafted a response and stated I would pay the 3600 and the 12% of my income tax refund only and that woud settle the case in good faith. I have yet to pay the 12% as I have just now filed my taxes. they are now demanding an additional $1500 if fees to go with it so i can pay them to sue me for something I never withheld in the first place. I feel that are extorting me at this point as I also know that they attorney and the BK Trustee are splitting the bulk of the loot and the Trust is getting next to nothing. What do I do? I did not sign their agreement, and of course they are now threatening the disposition of my BK if I don't pay up. I let them know I did not have legal counsel and was acting in good faith that the would represent the Trust accordingly. Do I pay a retainer to have a different attorney fight back, or do I just pay them the demand? I don't see how I owe them their costs when I never hid a thing from the begining. What is my recourse? Malpractice? State Bar Complaints? Please help me!
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Answered in 11 minutes by:
2/8/2013
Roger
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31,869
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney. Thanks for your question.

What is the $1500 fee for?
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Customer reply replied 4 years ago

the 1500 is for their fees for the cost of filing with the state that the trustee requestes the right to hire an attorney to demand I pay them and man hours for the pleasure of threatening to sue me.

If you disclosed the asset in your petition and at the 341 hearing, I'm a little confused as to why the trustee had to hire an attorney to "pursue" you for the money at issue - - and I certainly see that this is your basic confusion as well!

Trustees are notorious for doing junk like this - - and unfortunately - - most of them are able to get away with it. That said, I really think you have a defense the claim and may be able to prove to the court that you should have to pay for the trustee's attorney or other fees BECAUSE you've never contested owing the money and actually have disclosed it from the beginning of your bankruptcy.

However, the problem is an economic one - - and the question you'll have to ask is whether it would be cheaper to hire an attorney to fight (with no guarantee of winning) or to just pay the money? The trustee knows your predicament and that's why he/she isn't backing down.

Thus, it may be best to contact a local attorney, go over the facts and then decide how much it would cost you to protest the claim of the trustee. If your attorney things you can give it a shot for less than the claim, it may be worth a shot. However, if the attorney wants a $2000 retainer to fight, then it's probably easier - - from a business standpoint - - to just pay the money and move on. I know it's hard to pay the money when you think you're being wronged, but you have to look at it from a business standpoint - - not as a matter of principle.

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Hi - - typos in the second paragraph......Sorry::That said, I really think you have a defense TO the claim and may be able to prove to the court that you should NOT have to pay for the trustee's attorney or other fees BECAUSE you've never contested owing the money and actually have disclosed it from the beginning of your bankruptcy.
Roger
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31,869
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
Verified
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Roger
Roger
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Category: Bankruptcy Law
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