Bankruptcy Law

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Bankruptcy Trustee Questions

A bankruptcy trustee is a person that is assigned by creditors that is concerning a case that involves bankruptcy. When people file for bankruptcy it develops a bankruptcy estate. The estate includes all of the property that the debtor owes.

I filed chapter 7 on March 16th 2012 in PA, income taxes haven’t been filed yet and I listed an exemption on my pending divorce settlement. I am also expecting a tax return; If I file now what will I get to keep and how much will be used against my bankruptcy exemption?

Many people that file for bankruptcy make the mistake of filing Bankruptcy before they actually have the tax refund that is given. It isn’t a good idea to file for Bankruptcy before filing the income tax refund and receiving the income tax refund, which will now become part of the Bankruptcy estate - whenever filing and receiving the tax refund takes place. An individual will be able to keep the Earned Income Credit, because that is exempt, but unfortunately, the rest of the tax refund that was filed will have to be given to the Bankruptcy trustee.

Bankruptcy discharged 6mnths ago; I forgot I had to give the trustee part of my tax return, now what will happen? Is possible to appeal to the trustee?

It would be a good idea to send funds to the trustee as soon as the money is in possession. The bankruptcy trustee can ask the court to set aside the discharge based upon the nonpayment of the balance. The trustee should be notified as soon as possible and request a payment plan; the trustee may grant the payment plan but doesn’t have to if they don’t want to.

The trustee at the bankruptcy confirmation hearing suggested that I hire a Creditor's Attorney to file Proof of Claim and Motion to lift Automatic Stay. Financially, is this a difficult process that has to be handled by an attorney? How long does it take to get the approval to lift the automatic stay?

The bankruptcy trustee is required to suggest that a person uses an attorney. But that person does not have to get one, and the procedure to file a motion for relief from the automatic stay is not hard. The person should be able to get the paperwork needed and instructions from the clerk at the Bankruptcy court.

If the bankruptcy trustee turned over my assets (divorce settlement paid over time) to an attorney, is there an amount of time they have to collect from my ex-husband?

It sounds like the bankruptcy trustee now owns the right to collect from the ex-husband. That is normal since the bankruptcy trustee owns all of the husband’s property unless it is exempt. That includes all claims on future funding. Therefore, just as the ex would always owe a spouse if the spouse had not filed for bankruptcy, the ex-husband will always owe the bankruptcy trustee. The ex now owes the trustee, collecting is the trustee’s problem not the wife.

Can a bankruptcy trustee and lawyer be sued for damages resulting from a delayed civil lawsuit of five years, regarding an initial unclaimed interest of real property filed in a bankruptcy, refilled after filing civil lawsuit, without investigating the claims of either party, or the claims presented with proof from defendant being sued in state court.

A bankruptcy trustee and the lawyer are not exempt from being sued. Although, if a person plans to take a lawsuit into action against the trustee and the lawyer; that person will need to provide evidence that the trustee and lawyer had a duty to them and showed proof of damages to the client. Having the right information about bankruptcy trustees can help individuals deal with difficult situations and make the right decisions. Ask Experts about the bankruptcy trustee and other related topics.
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