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My question is regarding a bankruptcy, chapter 13. one of my…

Customer Question
Hello. my question is...

Hello. my question is regarding a bankruptcy, chapter 13. one of my clients filled for chapter thirteen 8 years ago. I leaned several pieces of his equipment. We went to trial in Oakland ca. several months after the trial I started receiving checks from his attorney for about $130 a month. now seven years has past and I've gotten a notice that the money $7,705.61 must now be return due to an error on there part. is this legal, can a chapter 13 standing trustee demand the money back?

Lawyer's Assistant: What state are you in? And has anything been officially filed?

Calif.and she has sent me three notices from her office, nothing from the courts

Lawyer's Assistant: Has anything been filed in civil court? If so, what?

In court I filed a proof of claim and a Calif Mechanics lien

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

I think that is it

Submitted: 9 months ago.Category: Bankruptcy Law
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Answered in 1 hour by:
10/28/2017
Bankruptcy Lawyer: Ray, Lawyer replied 9 months ago
Ray
Ray, Lawyer
Category: Bankruptcy Law
Satisfied Customers: 48,934
Experience: 30 years in civil, probate, real estate, elder law
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Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question and respond.

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Bankruptcy Lawyer: Ray, Lawyer replied 9 months ago

The trustee here would have to sue to get this back.You may decide to take your chances here, this isn't a lot of money and honestly I cannot see a trustee suing for this, so far after the fact.While it is possible for a trustee to sue on behalf of other creditors not at all sure they would do that.Honestly it appears to be trustee or lawyer error.You may decide to argue that in any response.Legally though trustee could sue.

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Bankruptcy Lawyer: Ray, Lawyer replied 9 months ago

Reference

https://www.nolo.com/legal-encyclopedia/pre-bankruptcy-payments-creditors-can-the-trustee-get-the-money-back.html

I appreciate the chance to help; you tonight.Thanks for rating 5 stars.

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Bankruptcy Lawyer: Ray, Lawyer replied 9 months ago

Read this , it is not at all clear they can sue you and this is such a small amount not sure it is worth it to them.You may decide to take your chances.

http://www.san-jose-bankruptcy-lawyers.com/what-happens-if-a-chapter-13-trustee-pays-a-creditor-too-much-or-pays-the-wrong-creditor/

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