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No one will explain this to me.

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lucidgirl

Junior Member
What is the name of your state? Florida

My husband and I filed chapter 7 bankruptcy. The process went through fine, but we got a tax return and they collected more than half of it to pay out to the creditors. It is my understanding that the companies we owe debt to have to file the claims themselves in order to recieve a portion of our tax return. As it turns out, the trustee in the case, filed on behalf of our creditors. As if this wasn't bad enough (and legal according to our lawyer) then we recieved a letter in the male that stated the following:

Order overrulling trustee's objection to claim.

"This case came on for consideration, ex parte, upon the Trustee's objection to claim filed herein, and the court having reviewed the records which reveals the claim no 16 was filed by Lauren P Green, trustee on behalf of (company name) was filed after the bar date for filing claims.

No objection or response has been filed with the bankruptcy court or the trustee. The court therefore deems the objection unopposed.

Accordingly it is:

Ordered:

1. The objection to claim by the trustee, be and the same hereby is overruled provided that claim no 15 filed by Lauren P Green, Trustee on behlaf of (company name) is allowed as a general unsecured claim but not entitled to distribution except to the extent taht there are surplus funds in accordance with bankruptcy code 726.

When I brought these letters into my lawyers office (which did not have them on file by the way) he stated that all this letter is telling us is that they will be able to keep our money from our income tax return. I inquired as to why, and he stated that she filed an objection to the original claims.

She FILED the original claims on BEHALF of our creditors. WIll someone please help to explain why she would file the original claims and THEN file an objection to those same claims?? Is this legal? Is a fast one being pulled on us here to confuse us? Please help, my lawyer was very rude and condescending today and I can't afford to hire a different lawyer.
 


bigun

Senior Member
The vast majority of Chapter 7 filings are no asset. So, when creditors are informed of the bk filing, the trustee will instuct them not to file a proof of claim unless instructed to do so.
Understand, the trustee represents the interest of your creditors. If they find assets to distribute, they'll do so {and collect a fee in the process}. Tax refunds are generally considered part of a bk estate. You're lucky you got half. Many have lost the entire refund.
Let it go and get on with life.
 

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