EXTREMELY unusual administered Chapter 7 by Panel Trustee

[HHM]

Were you represented by an attorney?

[DNV]

From DNV to HHM

You are on point.

Additionally, I need the mislabeling by the panel trustee of the Bk being "consumer" changes on the official record to "non-consumer";

I need to discover from DOJ U.S. Trustee if the EDNY panel trustee gave any
releases unbeknownest to me. On my filing schedules, I listed the malpractice claim against the OHio attorneys as an "asset", in addition to several assertive claims against the LP/LLC accountants and attorneys. I was told that the panel trustee abandoned these claims to me. BUT, I also know
the LP/LLC attorneys and accountants tried to pay the panel trustee $25,000 to obtain releases. BUT, if they said they'd give LP/LLC accounting docs that I could use re 1/7th LP/LLC for a ordinary or capital loss ($250,000-$280,000), the mere fact of the panel trustee giving said release to them would undercut their duty to provide me with said documents and also insulate them from the abandoned claim to me. The panel trustee will not inform me if a) she gave them releases; b) did she receive $25,000.

I was told by the panel trustee that the Ohio attorneys against whom I had a malpractice claim (the Ohio attorneys who submitted a claim post-discharge)
received no monies from "my estate". But I have no "estate" against which
they could claim any monies bc/ I was forced out of my 1/7th interest. I was only told "they went away", and they didn't get any money from you. I do not know if the panel trustee gave the Ohio attorneys releases such that
my stayed malpractice claim in the Ohio state court still could be pursued under an argument the panel trustee abandoned that malpractice claim to me in January, 2009 upon case termination.

It is the most unusual case I've encountered in the way it was handled. I had one 341 creditors meeting, and never was contacted again by either the trustee nor my then bk attorney, one later fired. I was dicharged within one year without any claims being presented, and the Ohio attorneys claim was
presented 6 months after my 8/2006 discharge- no one even told me they submitted a claim, and no one was clarified why a "Notice of Discovery of Assets" was sent out post discharge, when still everyone states I have no assets.

In the end, Sallie Mae was paid nothing (since I reaffirmed by acts) and
the Ohio attorneys received nothing. I was discharged,
but I stilll am out a 1/7th interest, and I can't take a loss. The LP/LLC accountants and attorneys had an assertive claim against them on my BK schedules. They won't give me the LP/LLC docs required to take the loss.
They say I no longer have a 1/7th interest. Someone converted my interest,
and there is a SOL for the abandoned claims.

The EDNY trustee had a duty re turnover proceeding or at least to report
the loss of an asset in the 1/7th. She chose instead to merely report it
as a no asset case, discharge herself, get the judge to sign off on it the same day, put my BK file in cold storage and "not available" at EDNY, and leave me hanging. I've written the U.S. Trustee for DOJ, and the appointed trial attorney- and have recv'd no response, even though they have the USTR filings made by the panel trustee.

I just do not get it.

[DNV]

Was I represented by an Attorney Answer

Well......it appears the jerk states that he only represented me as to obtainin the discharge. He took $5,000 prior to 2/23/2005, and then claimed he wasn't around the actually file the BK petition on 2/23/2005. I was forced to do the paper filing. He avoided it intentionally. He merely told me he knew the trustee very well, and had dinner with him every week. When I called him to inquire about why I recv'd a notice of disovery of assets - he said it was a mistake and he'd get back to me. He never did. I then wrote the panel trustee and tried to pursue everying, and that person told me to speak to my attorney, who never would return calls or e-mails. Then the panel trustee #1 was removed suddenly, my bk attorney of record is not contacting me, and I am told the communicate with panel trustee #1's law firm. The a panel trustee #2 is appointed 6 months later, and she starts trying to cut deals with people behind my back, not disclosing there were any claims, and sabotaging my malprcatice claim and assertive claims by giving releases.

For all I know money was exchanged behind the scenes to deep six my bk and to assure that I got nothing or knew nothing about my 1/7th, including sabotaging the ability to take a loss for the 1/7th, and obtain the valuation of the 1/7th LP/LLC interest.

it is strange. I know a clock must be ticking on claims and malpractice even
against my bk attorney and the trustee.

[eddiep]

I just do not get it.

Me either, still! Sorry

[SubPrimeME]

I'm sorry, but what does "exchanged behind the scenes to deep six my bk and to assure that I got nothing or knew nothing about my 1/7th,"

mean?

Can you just ask one question, or summarize your statements, we are all confused I think?!

Sorry, not trying to be a jerk or anything, but we are but single threaders here, and atleast for me, I am so lost by all of the lingo...

[jeb]

Does anyone remember the guy that companies hired a few years back to give seminars to their people?

Guy would talk on a subject the company was involved in for an hour - never knew a single thing about the subject and never said a single sentence that anyone could follow.

In virtually every case, when asked to fill out a form about how well he did, just about everyone there said he did a great job.

[DNV]

"In a Nutshell" on point

Yes......not only do I need the ability to take tax loss with the documentation supplied by the trustee re as to the 1/7th LP/LLC interest
valued in 2000 at between $250,000-$280,000, but I also need to discover
what releases if any the panel trustee provided to a) Ohio attorneys against
whom there was a stayed malpractice action in an Ohio state court; b) the Ohio accountants and attorneys for the LP/LLC who tried to give her $25,000
in consideration for a release e.g. which would have mooted, if given, any need to provide me documents to take the loss for the 1/7th LP/LLC AND if given would sabotage any cause of action to pursue a claim for the $250,000- $280,000 loss against the 1/7th LP/LLC e.g. since they forced me out of the entity without paying me for my 1/7th, using the bankruptcy as the vehicle. The trustee will not provide me either with transparency if she provided releases to any of the above and she will not provide me the documentation to take the loss. She has obligations under the DOJ's own Trustee Guidelines to do so, under the facts of this case, and unstated other aspects. The entire thing is wierd. Trustees have immunity from suit under the Barton Doctrine (although that has been eroded), but they are subject to scrutiny by the DOJ's oversight board who refers material matters to the U.S. attorneys office. I would prefer to get the information without having to go that route, and have taken all steps to lay a record, but my SOL's in the Ohio state courts are running against the "a" and "b" above parties and entities for claims abandoned to me from my BK estate (not pursued by the trustee) by the trustee. Essentially, by not providing me the information I need, she impliedly is undercutting my ability to pursue claims, combined with the fact she has removed the file from public accessbility, she got the judge to sign off quickly on theBK case termination rather than have him wait the 30-45 days to sign off to allow motions by me, and she left on my public fiing is was a consumer, rather than non-consumer BK (which has legal effect).

[SubPrimeME]

Does anyone remember the guy that companies hired a few years back to give seminars to their people?

Guy would talk on a subject the company was involved in for an hour - never knew a single thing about the subject and never said a single sentence that anyone could follow.

In virtually every case, when asked to fill out a form about how well he did, just about everyone there said he did a great job.

That's too funny! I'm done with this thread.

[HHM]

Ok, let me take a crack at this...

You filed BK and were discharged. If that is the case, this whole issue with the LLC/LP is moot. It is/was an asset of your BK estate, you are not entitled to payment of any value, and as best as I can recall, you don't get to take a capital loss on your taxes. For BK purposes, the typical value used for a company is its ASSET value. Did the company have any assets of any value, if not, for BK purposes, your 1/7 interest had zero value. I suppose you would simply list the current value at zero and "Attempt" to claim that loss, but you better talk to an experienced CPA. Also, odds are, the LLC agreement had an automatic conversion clause in the bylaws in the event an owner files BK. So, you probably have no more interest in the company.

As for releases etc., any claim you have against the attorney's/accountants are assets of your BK estate (that is what makes up your BK estate, all assets, liabilities, income, and expenses). Generally, the trustee will abandon lawsuits because she does not want to deal with it. If so, you simply pick up the lawsuit where you left off. As for filing claims in your BK estate, that is easy enough to figure out, get a PACER account. You will be able to see if anyone filed any proofs of claim etc.

By "assertive claim", I assume you mean they either have counter-claims against you or are plaintiff's in their own right. If so, they are creditors of yours.

Also, I am not sure why you insist on using such jargon in your posts...not even lawyers talk like that.

[DNV]

Reply to HMM

The problem with picking up where I left off pre-Bk with claims and counterclaims (considered to be part of the estate, but which were abandoned by the t/ee) is that the trustee was negotiating with the parties to provide releases, and yet for what consideration? She had no bases to negotiate releases for in one case $25,000, Yet, I have no evidence
the releases were/ were not provided bc/ I (as the debtor) protested
with the t/ee. Extensive conversations ensued ( I learn from a third-party) between the t/ee and those who would be parties (now) to any suits I might pick up now (abandoned claims, if no releases were given) and pursue in the Ohio state Court. The t/ee will not clarify if the releases were given. Therefore, it is impossible to "pick up" with the claims allegedly abandoned if she gave releases inspite of my protests. I need the information.

[HHM]

trustee was negotiating with the parties to provide releases, and yet for what consideration? She had no bases to negotiate releases for in one case $25,000, Yet, I have no evidence

So long as your BK was open and the trustee has not abandoned your claims, she has EVERY RIGHT to negotatiate. When a debtor files BK wherein the debtor is the plaintiff or otherwise has claims in the lawsuit, the trustee steps into your shoes, fully. She can do whatever she considers is in the best interests of the creditors of your BK estate with regard to the lawsuits.

As for releases, I would think they would have been filed in the state court action dismissing (releasing) the claims. Unless the records are sealed, (doubtful), you can go to the State Court Clerks office and request a Docket Report to see what has been filed.

[DNV]

I have checked the docket....nothing. With regards to negotiating $25,000 for her pocket to release the LP/LLC accountants and attorneys who hammered the litigation to forseeably move me to BK (for purposes of having a legal reason to argue I no longer am a LP/LLC member e.g. constructive abandonment by virtue of a BK e.g. operating agreement terms), no pleadings yet had been filed against them. By giving them releases, they would have paid her $25,000 for her own pocket to assure she took away a forseeable potential cause of action not yet filed. They were directly responsible for converting my interest, so to speak, ramming me into BK (using incurred legal fees to force me into BK), and thus with other facts, she become an accomplice impliedly by then cutting off my cause of action by giving releases. They weren't even creditors, merely the accountants and attorneys for the LP/LLC in which I'd had a 1/7th interest. They had no standing since
they were not creditors, merely representatives for my 1/7th interest considered part of the estate, and I am assuming the 1/7th LP/LLC interest had to have been the bases for sending out post discharge the Notice of Discovery of Assets.

It think it is strange, based on the fact the LP/LLC accountants and attorneys weren't creditors, but were negotiating for releases for a yet unfiled cause of action and offering to give her $25,000, and they weren't creditors, merely potential defendants in a yet tobe filed claim, considered part of the estate (a asset as a potential claim).

Had I forced the issue of a turnover proceeding or forced the issue of "lost assets" based on the issued Notice of Discovery of Assets, the only parties with standing (as creditors) would have been my former attorneys (not the same as the Ohio accountants and attorneys for the Lp/LLC)against whom I had a malpratice action, and had submitted claim post discharge (to whom she gave nothing). So, I guess I am missing something here because at least she would have had a duty to tell me that she gave releases for $25,000 to non-creditors who were afraid once the BK was terminated they'd face a cause of action. I hadn't yet sued them in Ohio state court. She may have just pre-empted by giving them releases, and thus sabotage ,u future suit and protected them- non-creditors, but the people who cause my BK intentionally to convert my 1/7th without having to pay FMV. So, I don't know, it seems they merely used the trustee to help escape liablity, when there is clear culpability and legal/professional liablity. I think it strange she took $25,000 to help them secure it, if she did.