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Filing a motion or complaint vs. Chapter 7 trustee?

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    Filing a motion or complaint vs. Chapter 7 trustee?

    I am getting way ahead of myself here, but wanted to explore my options if things don't go my way.

    So, I am anticipating the possibility that my trustee will take some money from a suit I had pending in the chapter 7 bankruptcy that I have, that is discharged, yet still open. But, the law clearly states that I am correct from the exemptions under "loss of future earnings".

    I don't like to sue or file motions, or whatever, but if the trustee demands some of my settlement to go to my creditors, I am probably going to get an attorney to fight that, because the law clearly states I have an exemption, and I have tons of evidence to prove that with my income getting hurt by the lawsuit, and by my "loss of future earnings", among other possible exemptions.

    So, my question is this: Has anyone filed a motion or lawsuit vs a chapter 7 trustee that overlooked an exemption? And if so, what type of attorney would I need to get?

    Please note that I have been 100% transparent in all my dealings. I am just very confident that I have a lot to stand on, based on the law, and not my opinion.

    I also understand that the trustee has a job to do, and I hope that they do it correctly based on the law, and to follow the law in my situation. I am basically insolvent due to the actions of my unethical employer, and this eventually lead to my bankruptcy a few years later.

    To sum up, the suit looks like a win for me, and even though the trustee took over the suit, the damages are from an employer retaliation that has caused tremendous "loss of future earnings" for me, and this "loss of future earnings" is clearly mentioned in that state I reside in, as an exemption.

    Thank you for any feedback in this situation.
    Last edited by vhs; 12-13-2023, 10:02 PM.

    #2
    You are getting way ahead of yourself. First of all, the Trustee controls the asset (subject to any "allowed" exemption). He/she has the right to prosecute, settle or otherwise dispose of the asset. Second, if the asset is not abandoned, Trustees typically try to settle. Any settlement will need bankruptcy court approval. The Trustee will file a "9019 Motion" for the approval of a settlement. It will be noticed to creditors and interested parties (you are an interested party). Those who get notice will have time to object to the terms of the settlement.

    As to what attny can assist you. . . talk to your current attny. If this is not something he/she handles, he/she can refer you to someone who does.

    Des.

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      #3
      Originally posted by despritfreya View Post
      You are getting way ahead of yourself. First of all, the Trustee controls the asset (subject to any "allowed" exemption). He/she has the right to prosecute, settle or otherwise dispose of the asset. Second, if the asset is not abandoned, Trustees typically try to settle. Any settlement will need bankruptcy court approval. The Trustee will file a "9019 Motion" for the approval of a settlement. It will be noticed to creditors and interested parties (you are an interested party). Those who get notice will have time to object to the terms of the settlement.

      As to what attny can assist you. . . talk to your current attny. If this is not something he/she handles, he/she can refer you to someone who does.

      Des.
      thanks for the reply.

      what further complicates this is that the agreement with the previous employer is under a confidential agreement. so, I don't know what the hell happens in that situation. third parties are not supposed to know about this. regardless, I felt telling the trustee was the best course of action, so I don't get into any trouble afterwards, and if they find out the settlement. I listed this in the chapter 7 under "lawsuit". maybe I am OK with it all.

      you are correct, I am getting ahead of myself here. but, I just wanted feedback on possible outcomes.

      Comment


        #4
        When does a chapter 7 trustee abandon an asset? Can exemptions come after the chapter 7 discharge? In my situation, the case went from a standard whistleblower to a retaliation as well. I am insolvent now too, and can prove it, from the unethical practices of my employer. I really do see the trustee abandoning this, based on my situation. Also, the settlement is decent, but still well under 6 figures. So much to consider. I guess I just have to wait.

        Any insight is always appreciated. And thank you for responding to this. I had no idea what a 9019 was until now.

        Comment


          #5
          Originally posted by vhs View Post
          When does a chapter 7 trustee abandon an asset?
          Assets are abandoned either upon the filing (and approval) of a Notice of Abandonment/Motion to Abandon or the closing of the case, whichever occurs first.

          Originally posted by vhs View Post
          Can exemptions come after the chapter 7 discharge?
          Exemptions are set as of the Petition date.

          The real question is whether or not a claim for "future lost wages" stemming from a cause of action that accrued pre-petition is property of the estate in a Chapter 7. That is something you need to ask a qualified attorney in your jurisdiction.

          Des.



          Comment


            #6
            Originally posted by despritfreya View Post

            Assets are abandoned either upon the filing (and approval) of a Notice of Abandonment/Motion to Abandon or the closing of the case, whichever occurs first.



            Exemptions are set as of the Petition date.

            The real question is whether or not a claim for "future lost wages" stemming from a cause of action that accrued pre-petition is property of the estate in a Chapter 7. That is something you need to ask a qualified attorney in your jurisdiction.

            Des.


            Thanks again. Appreciate your wisdom.

            I have a lot to fall back on, and have been 100% transparent in this, which helps me sleep at night. Like I mentioned, I believe the court would side with me here if it goes to a hearing, because the employer's actions are what led to my Chapter 7 as well. I also was not working for most of the lawsuit due to being "blacklisted" in my industry and not being able to find work for nearly 2 years due to the employer situation and other reasons. I have an issue of not being able to pay my bills right now (late on mortgage right now, etc. ). And since my chapter 7, nearly a year has passed with my having no income (I just go a part time job to help pay some bills). I am sure the state court will do the right thing in this situation, and see that there are exemptions that I can use. But, I can never know their interpretation, and I can't find any information on cases similar to mine (which is why I sincerely appreciate all your help on here). The waiting for this is difficult. But, I waited several years to get to this point with my previous employer, so it won't matter if this issues takes several more weeks or months to resolve. Also, I had a medical condition that hurt my employment prospects as well, which contributed to my solvency issues over the years.

            Comment

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