Short Sale By Chapter 7 Trustee

In the Western District of Washington – encompassing Seattle, Tacoma, Vancouver, and Bellingham – it is fairly common for the chapter 7 trustee to conduct a short sale on a debtor’s real property, if a few conditions are met.  The chapter 7 trustee might conduct a short sale on a debtor’s real property if: The debtor is in default on … Continue reading »

US Trustee Suspends Random Audits Indefinitely

The US Trustee’s Office has indefinitely suspended its random audit program effective March 2013.  The random audit program was one of the fraud prevention measures added in the 2005 BAPCPA amendments to the US Bankruptcy Code.  (Wall Street Journal)  The audit program has also been a significant cause of stress and concern for many of my clients. The purpose of … Continue reading »

Lessons From the Casey Anthony Bankruptcy

The Casey Anthony bankruptcy is a good illustration of the two immutable rules of bankruptcy: Everything can be monetized. If it can be monetized, the chapter 7 trustee will liquidate it. In case you’ve been living under a rock for the last couple of years, the Casey Anthony bankruptcy case is as follows.  Casey Anthony was accused of murdering her … Continue reading »

Chapter 7 Trustee

The chapter 7 trustee is a private party who is appointed by the US Trustee’s Office to oversee chapter 7 cases.  Most chapter 7 trustees are attorneys, but some are CPAs or people with backgrounds in business.  The chapter 7 trustee conducts the 341 meeting of creditors, reviews the petition for accuracy, collects and liquidates assets, makes the asset report … Continue reading »

US Trustee Investigation of Mortgage Servicing in Bankruptcy

In re Subpoena Duces Tecum, 461 B.R. 823 (C.D.Cal. 2011) – Investigation of Mortgage Servicers Oftentimes debtors think of the US Trustee as someone who is monitoring them.  It is easy to forget that the US Trustee’s Office role is to oversee and administer the entire bankruptcy system.  This includes overseeing the conduct of creditors.  When creditors abuse the provisions … Continue reading »

Denial of Discharge Defense – Advice of Counsel

A denial of discharge adversary proceeding seeks to take away your entire discharge.  If the trustee is successful, not only do you lose the discharge in this case but you cannot discharge any of these debts in a future bankruptcy.  As one lawyer put it, it makes you a financial dead man walking.  This is why it is so important … Continue reading »

Can I Give/Sell/Deed This Property To . . . .

Whenever someone has some property and too much debt, they want to know how they can protect the property from creditors.  The general rule is that you can use exemptions.  But sometimes, the property does not fit into an exemption category or it exceeds the allowed exemption.  Your first instinct may be to sell the property or to give it … Continue reading »