Ch. 7 Liquidation and assets

[JETX]

I have a case where the debtor has filed for, and received, a personal chapter 7 voluntary, no asset bankruptcy.

Problem is that the individual was allowed to keep several personal assets that should have been taken by the trustee. Prior to the bankruptcy, he owned his own business (d/b/a). He is still 'up and running'.. same name, same location. When asked about this, his response is, "No one said I couldn't!".

Also, somehow he managed to keep his boat and two jetskis. This is in addition to his house, two cars, etc. I know that house and cars are exempt... but the boat and jetskis!

My questions:
1) How was this petitioner allowed to keep his personal assets?
2) How can I get the bankruptcy waived so that my judgment is good again? (I have contacted the assigned Trustee, he isn't concerned.)

Thanks for any advice.

Steve Halket
Judgment Recovery of Texas

[This message has been edited by Halket (edited June 29, 2000).]

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face=" Arial, Verdana, Helvetica">quote:</font><HR>Originally posted by Halket:
I have a case where the debtor has filed for, and received, a personal chapter 7 voluntary, no asset bankruptcy.

Problem is that the individual was allowed to keep several personal assets that should have been taken by the trustee. Prior to the bankruptcy, he owned his own business (d/b/a). He is still 'up and running'.. same name, same location. When asked about this, his response is, "No one said I couldn't!".

Also, somehow he managed to keep his boat and two jetskis. This is in addition to his house, two cars, etc. I know that house and cars are exempt... but the boat and jetskis!

My questions:
1) How was this petitioner allowed to keep his personal assets?
2) How can I get the bankruptcy waived so that my judgment is good again? (I have contacted the assigned Trustee, he isn't concerned.)

Thanks for any advice.

Steve Halket
Judgment Recovery of Texas

[This message has been edited by Halket (edited June 29, 2000).]<HR></BLOCKQUOTE>

You need to get a copy of his BK schedules to see if he listed those items as assets. Next check on the titles to those items to see if it is in is name as legal owner. He should have listed his ownership in his business. Also did he file BK using State of Texas or Federal criteria? You need to understand both.

If he holds title to those assets and they are not listed on his schedules, he has committed fraud. If the petition is still active, you must file a formal request with the trustee. If the trustee's hearing is informal, show up and voice your objection and/or send a written response re: the debtors hiding of assets. If you are collecting for unsecured creditors, Chapter 7 wipes out the debts if they were listed.

 

[JETX]

Thanks for your response.

1) I have a copy of his bankruptcy petition including assets and debtors lists. They clearly show ownership of the business, even reporting the rent as a debt.
2) It also shows some property that he owns. The filing shows that the property was under sales contract, but makes no mention of the money received from the sale or the disposition of the property if no sale.
3) Finally, the debtor list does not show the boat or jetski's.

Problem is:
I have already talked with the Petitioners attorney, the Trustee, the bankruptcy clerk, a former Fed Prosecutor... everything short of the FBI. No one wants to get involved. Just frustrating knowing that these low-lifes have the full protection of the bankruptcy court so that they can continue their questionable business tactics!!!

By the way.. this bankruptcy closed last November!!! All debts released!!

Again, thanks for your response....

<BLOCKQUOTE><font size="1" face=" Arial, Verdana, Helvetica">quote:</font><HR>Originally posted by HomeGuru:
You need to get a copy of his BK schedules to see if he listed those items as assets. Next check on the titles to those items to see if it is in is name as legal owner. He should have listed his ownership in his business. Also did he file BK using State of Texas or Federal criteria? You need to understand both.

If he holds title to those assets and they are not listed on his schedules, he has committed fraud. If the petition is still active, you must file a formal request with the trustee. If the trustee's hearing is informal, show up and voice your objection and/or send a written response re: the debtors hiding of assets. If you are collecting for unsecured creditors, Chapter 7 wipes out the debts if they were listed.<HR></BLOCKQUOTE>



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Steve Halket
Judgment Recovery of Houston
[email protected]