Bankruptcy Law

Bankruptcy law questions? Ask a bankruptcy lawyer.

Ask a Lawyer,
Get an Answer ASAP!

This answer was rated:

Can a creditor in a California bankruptcy proceeding who has…

Can a creditor in...

Can a creditor in a California bankruptcy proceeding who has entered into a post petition contract with the trustee in a chapter 7 case resend the contract if the trustee breeches the agreement.

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

California. The contract with the trustee provided that part of a secured judgment lien would go to the trustee if the trustee performed certain obligations. The trustee breached. In addition to suing for breach of contract, can I also resend or cancel the agreement under Civil Code section 1688

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

Many things have been filed in bankruptcy court including the contract and the bankruptcy courts approval of the contract. As a result, the trustee was supposed to perform certain obligations. For example, one property was sold payment was supposed to be made immediately. Instead the payment was sequestered.

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

There was $3 million involved that under the contract was supposed to be split 50-50. Because of the breaches, if the contract was cancelled the trustee would not receive his half, which went for trustee legal fees anyway

Show More
Show Less
Ask Your Own Bankruptcy Law Question
Customer reply replied 8 months ago
That should say “rescind” not “resend”
Customer reply replied 8 months ago
To be more precise, the contract is a “carve out” whereby the estate received 50% of a secured judgment lien. In return the trustee agreed to revoke a trust formed by the debtor, to support the judgment Lien in any litigation where it should come up, to sell the property fast and pay off the lien out of escrow when the property was sold and litigate a pending case to completion. In fact, he sequestered the funds, abandoned the litigation, attacked the lien in litigation and did not sell the property for over two years. The question is can the Ch 7 estate be sued for breach of contract and can the remedy of rescission be sought. The contract was approved by the bankruptcy court on June 18, 2014. There was $1.5 million in the trustee share allegedly for the benefit of unsecured creditor. He wants to take out $1.4 million for his own fees.
Answered in 1 day by:
11/24/2017
DrakeLAW
DrakeLAW, Attorney
Category: Bankruptcy Law
Satisfied Customers: 1,038
Experience: Attorney at Drake Law Firm PLC
Verified

Hi, my name is ***** ***** I look forward to helping you, please give me a moment to review and possibly research answers to your question.

Ask Your Own Bankruptcy Law Question

I see that your question was posted yesterday, I can help you with this, please let me know if you still want assistance with it. Thank you.

Ask Your Own Bankruptcy Law Question
Customer reply replied 8 months ago
I still would like an answer, thank you
Customer reply replied 8 months ago
thank you for your assistance.

Alright, thank you for your patience. That is quite a set of facts.

Yes, a chapter 7 trustee can be sued just like any other entity. All of the contract claims, defenses, and remedies would be available as well. The trustee gets sued in his capacity as a trustee, not individually.

Please kindly rate the question so I may be credited. Thank you. You can still ask follow-up questions.

DrakeLAW
DrakeLAW, Attorney
Category: Bankruptcy Law
Satisfied Customers: 1,038
Experience: Attorney at Drake Law Firm PLC
Verified
DrakeLAW and 87 other Bankruptcy Law Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a bankruptcy lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask DrakeLAW Your Own Question
DrakeLAW
DrakeLAW
DrakeLAW, Attorney
Category: Bankruptcy Law
Satisfied Customers: 1,038
1,038 Satisfied Customers
Experience: Attorney at Drake Law Firm PLC

DrakeLAW is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Terry L.

Terry L.

Attorney

2,720 satisfied customers

Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

cortrightlaw

cortrightlaw

Attorney

513 satisfied customers

Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

JoeLawyer

JoeLawyer

Attorney

376 satisfied customers

Attorney in the practice of Bankruptcy Law since 1996

A.J.

A.J.

Attorney

262 satisfied customers

Experienced consumer bankruptcy attorney.

Fritz

Fritz

Attorney

209 satisfied customers

Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases

Law Girl

Law Girl

Attorney

153 satisfied customers

I am an attorney.

Paul K, Esq.

Paul K, Esq.

Attorney

141 satisfied customers

10 years Exp., Great customer service, Prompt responses.

< Previous | Next >

Related Bankruptcy Law Questions
NOT A DUPLICATE*** Please do not close! This question
NOT A DUPLICATE*** Please do not close!This question concerns objecting to a creditor's claim within my Chapter 13 bankruptcy:American Express obtained a judgment against me for approx. $10,000 a few … read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,939 satisfied customers
I lost a breach of contract case in CA federal court. I
I lost a breach of contract case in CA federal court. I must consider bankruptcy now. Before I do I want to put a lien on my home with my lawyer. I owe him money and have equity in my home to cover th… read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,939 satisfied customers
My business went bankrupt and closed in 10/2013. I still have
My business went bankrupt and closed in 10/2013. I still have not been able to file for bankruptcy, and have received a Complaint on Breach of Contract with one of my lenders. What do I respond in my … read more
Attorney2020
Attorney2020
Lawyer
2,480 satisfied customers
I heard that If I try to include the debt(default judgment
I heard that If I try to include the debt(default judgment with fraud charge) the creditor will most likely open a adversary hearing. Would it be hard to prove that it wasn't a fraud through adversary… read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
This question is for bancruptcy atterneies. There is a high
This question is for bancruptcy atterneies. There is a high amount defult judgment debt with fraud charge. Is it possible to discharge it through Bancruptcy?… read more
cfortunato
cfortunato
J.D.
7,967 satisfied customers
I have a 300,000 judgment lien on my primary home. loan balance
I have a 300,000 judgment lien on my primary home. loan balance is 1.1mill and the current market value is 1.5mill if sold at normal housing market. can you advice what to do to resolve the 300,000 ju… read more
TJ, Esq.
TJ, Esq.
Juris Doctor (JD)
11,462 satisfied customers
Non working spouse (NW) in divorce proceedings is exploring
Non working spouse (NW) in divorce proceedings is exploring BK as an option to get out of debt that's in her name. Husband is NOT filing. What gets wiped out? NOTE: she is somehow of the belief that i… read more
socrateaser
socrateaser
1,031 satisfied customers
Hello, I met with an attorney in Arkansas for a chapter 13
Hello, I met with an attorney in Arkansas for a chapter 13 filing. After looking over all my debts, which are all just credit card debts only, he suggested I just stop paying. IF they decide to sue, t… read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,939 satisfied customers
I have a question about active civil litigation cases during
I have a question about active civil litigation cases during a Chapter 7 or 13 bankruptcy. Suppose someone has 10 active civil litigation cases that are about to get judgments. That person then has to… read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
Entertainment Publications filed Chapter 7 on March 12, 2013.
Entertainment Publications filed Chapter 7 on March 12, 2013. Some schools had signed contracts to sell their upcoming 2014 books. When the news hit about the bankruptcy and loss of over 660 jobs, off… read more
socrateaser
socrateaser
1,031 satisfied customers
My ex-business partner and I had a verbal agreement which would
My ex-business partner and I had a verbal agreement which would have me assume full responsibility for our previous business outstanding liabilities in exchange for her fifty percent equity position i… read more
socrateaser
socrateaser
1,031 satisfied customers
We have an upcoming hearing….. (I took out Names)After
We have an upcoming hearing….. (I took out Names) After reading this I have some question below? ____________________________________________________________________________ Final Ruling. This Motion … read more
Fritz
Fritz
Attorney
209 satisfied customers
The bankruptcy trustee sold an asset of the bankrupt to the
The bankruptcy trustee sold an asset of the bankrupt to the creditor for a nominal sum without doing any due diligence. The asset owns 50% of the parent company of the creditor. The creditor obtained … read more
socrateaser
socrateaser
1,031 satisfied customers
I filed for a Chapter 7 bankruptcy. I was in litigation over
I filed for a Chapter 7 bankruptcy. I was in litigation over title to the house I had a homestead on. I included the litigation in the Chapter 7 bankruptcy. The individuals in the litigation filed for… read more
Maverick
Maverick
Doctoral Degree
6,336 satisfied customers
If a seller sells his house under a land contract, where he
If a seller sells his house under a land contract, where he keeps the title to the property and, after just a couple of months, he files bankruptcy, what happens to the house: is subject to bankruptcy… read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,939 satisfied customers
I had a sold a pacakage of alpacas (livestock) we had a set
I had a sold a pacakage of alpacas (livestock) we had a set payment stream with a balloon payment at the end of the contract. When the contract came due the buyer asked for a one month extension to se… read more
FiveStarLaw
FiveStarLaw
Attorney
Doctoral Degree
477 satisfied customers
I am going thru a Divorce, and My Business is suffering, approx
I am going thru a Divorce, and My Business is suffering, approx 200K in debt, and the Union is trying to get a 225K judgement for ERISA liability. Should I declare bankruptsy?… read more
JP
JP
Doctoral Degree
109 satisfied customers
I am being sued by a collection agency who purchased a credit
I am being sued by a collection agency who purchased a credit card debt that i have. The amount is about 4800, plus interest for three of four years. I talked with a lawyer about 6 months ago, who cal… read more
VanDLaw
VanDLaw
Juris Doctor
4 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x