Ch. 7 & Creditors Rights

[sjs415]

Georgia
My builder left my home 50% complete & owes me approx $47,000 in stolen money, materials, and labor. A small portion ($5-7,000) will be charged as felony theft by deception but the remainder will have to be settled as a civil matter. After my last written notification to collect he filed Chapter 7. A civil suit has not yet been filed.
IS IT WORTH MY TIME TO PERSUE A CIVIL SUIT OR AM I OFFICIALLY SCREWED B/C HE HAS FILED CH. 7??? Any advice helpful! Thank you!

[Debt Guy]

Maybe. Maybe not.

You really should speak to a local bankruptcy attorney and determine if you have a shot to prevail in an objection to the discharge or perhaps objection to the inclusion of your debt in the bankruptcy.

[sjs415]

Georgia
I managed to pull up the petition; I am not currently listed as a creditor but I had sent an email to the trustee and informed him of the situation immediately after I found out he filed. .... I'm hoping I didn't shoot myself in the foot!

I'm trying to find an attorney, but the meeting of the creditors is next Friday & it's being held about 3 hrs away. Should I plan to attend to assure I'm not included?

[nrknlknek]

I would try like the dikens to obtain a BK attorney, though I realize they are very busy these days. If you can't, then yes, do attend the meeting of creditors. While I don't know the particulars, generally, debts incurred as a consequnece of fraud or criminal activity are not dischargeable. The fact that you are not listed as a creditor is troublesome and at the meeting, I would certainly ask the petitioner why you are not listed. The Trustee, if they are doing their job (who knows?) will ask the Petitioner if he is aware of any other debts not listed on the schedules. The reponse will be interesting. By the way, Petitioner is under oath for his testimony.

[Johnny O]

Trustee Meeting After Filing the Petition

Notice of Meeting of Creditors. When the petition is filed, a combined Order Scheduling a Meeting of Creditors and Fixing Filing Dates for Claims, Complaints Objecting to Discharge, and Complaints Seeking Exception to Discharge will be sent by the Court to all creditors, to you, and to your attorney's office. This is commonly referred to as the “341 Notice” or the “Creditor Meeting Notice.” You should receive this Notice from the bankruptcy court approximately ten (10) days after your petition is filed.

What is a Trustee and What Does He/She Do? The “Bankrupt Estate” consists of all legal and equitable interests you have in property as of the date the case is filed. In Chapter 7 one primary job of the Trustee is to gather all of your non-exempt assets, sell those assets, and distribute the proceeds among all your unsecured creditors. A Trustee is randomly appointed by the Court immediately upon the filing of a Chapter 7 petition. The Trustee is usually a private attorney and is compensated primarily by a percentage of the non-exempt assets he or she is able to collect and distribute to your creditors

Meeting with Trustee. In the Middle District of Florida - Orlando Division, the meeting with your Chapter 7 trustee (the “creditors meeting” or “341 meeting”) is held in a conference room, not the courtroom, and the federal bankruptcy judge is prohibited by law from being there. Typically this meeting will last about ten minutes. The trustee will ask you questions about your banrkuptcy petition. Your bankruptcy attorney can tell you what questions to anticipate.

Who attends? You are required to attend the creditors meeting with the bankruptcy trustee (if filing jointly, both husband and wife must attend). Your bankruptcy attorney will accompany you and represent you at the meeting. As a practical matter very few, if any, unsecured creditors attend. The trustee's job is to represent all creditors whether or not a creditor attends the meeting of creditors.

What Happens at the Creditors Meeting? The Chapter 7 Bankruptcy Trustee will ask you questions, but (s)he will not interrogate you, cross-examine you, or threaten you. The trustee may ask you why you filed bankruptcy. The trustee often asks questions about your assets and your sources of income.

[sjs415]

Georgia
Thank you all so much for your responses!! A good portion of the amount (27,000) was picked up on criminal charges. Judge signed the warrant for his arrest; he turned himself in & bonded out .... just in time to attend his 1st bankruptcy hearing. (how sweet) Thanks again!!!!