QUESTION
What will happen if I am supposed to make a payment to the trustee based on non-exempt assets but I no longer have the funds to do so?
Asked on Jan 16th, 2013 on Bankruptcy - Colorado
More details to this question:
This is supposed to be fund disbursed to creditors in a chapter 7.
9 ANSWERS
If you were not represented by counsel, I would recommend contacting the trustee right away and explaining the situation. Work with them to remedy this problem.
Answered on Jan 28th, 2013 at 7:23 PM
Daniel James Wilson
You will have to make arrangements with the trustee or eventually your discharge will be revoked.
Answered on Jan 21st, 2013 at 1:40 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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You need to seek competent counsel who is experienced in both chapter 7 and 13s. Please understand that bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Jan 18th, 2013 at 12:34 PM
One of two things could happen, 1) the trustee can take the asset and sell it, or 2) the trustee can revoke (cancel) your bankruptcy discharge eliminating your debts.
Answered on Jan 18th, 2013 at 12:34 PM
Richard hirsh
It appears that you have spent funds that were property of the estate. You could be denied a discharge or your discharge could possibly be revoked. You are also liable to the trustee for the money. There are possible criminal charges as well.
Answered on Jan 18th, 2013 at 12:33 PM
Deborah F. Bowinski
If you still own the non-expat assets you can probably turn them over to the trustee instead. If you do not, your trustee has the ability to prevent you from receiving your discharge, or I you already received it, the trustee can file a motion to have your discharge revoked.
Answered on Jan 18th, 2013 at 12:33 PM
Bankruptcy Attorney serving Dallas, TX
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Polk & Associates
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Technically, you could have big problems. However that is not what usually happens. I'm sure this won't be the first time your trustee has ever seen the issue come up. This type thing happens from time to time and the "usual" way of dealing with it is that you get on some type of payment plan to get the funds repaid. In a sense, your Chapter 7 case ends up being kind of like a Chapter 13 while you're working off this amount you owe your trustee.
Answered on Jan 18th, 2013 at 12:32 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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You need to speak to your attorney asap. If you don't have an attorney, you need to speak to the trustee and see what arrangement you can work out, if you miss payments and are unable to work out an arrangement, the trustee will sell the non-exempt property.
Answered on Jan 18th, 2013 at 12:30 PM
Bankruptcy Attorney serving Denver, CO
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Colorado Bankruptcy Law Group, LLC
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If you don't pay the trustee what you need to, he or she will likely ask the court for an order to force you to turn the assets over. If you don't comply, he'll ask the court to dismiss your case. Your best bet would be to talk to your attorney or trustee to see if you can set up a payment plan.
Answered on Jan 18th, 2013 at 12:29 PM