Ch. 7 case been declared "Asset"....

[marinah]

...after the Trustee talked to us at our 341 and believes we will be receiving a settlement in a legal malpractice case. In fact, there is no settlement forthcoming (at least not in our names), but I don't know if we can convince him of that at our follow-up meeting.

It's my understanding from reading on this forum and elsewhere, that as long as we are forthcoming about everything with him, we will still be discharged, but now that it's an "asset" case he will leave the case open until he (a) recovers the settlement (not happening!) or (b) realizes there is no settlement coming and closes the case.

Is this accurate? We have filed pro se, have no money for an attorney, so wanted to clarify what kind of powers a Trustee has.

Thanks!

[ready2puke]

I've been told (since I have a dirt plot in Mexico that he'll try to sell ), that the TT can keep a case open like forever...or until he gets bored...sorry but thats what several attorneys told me. Wish I had better news for you and me...
Maybe you can get something in writing from the power of attorney that says you get nadda..

[JoeBankrupt33]

Yes, they can keep the case open, but your discharge should be similar to anyone elses, about 60 days after the 341. I think it really stinks that they can do this.

[marinah]

It does totally stink that they can do that. But, as long as we get the discharge, we can move on with life, right??

I like the idea about getting it in writing that we won't get anything in the settlement. Thanks for thinking of it, we might pursue that.

[JoeBankrupt33]

That's the way I see it. I know my case is going to be open a while, especially since I'm making monthly payments to the trustee for a few more months, but I'm just waiting for the discharge. Can't wait to get on with my life.

[CarrieOakey]

...after the Trustee talked to us at our 341 and believes we will be receiving a settlement in a legal malpractice case. In fact, there is no settlement forthcoming (at least not in our names), but I don't know if we can convince him of that at our follow-up meeting.

This might be a semantic question but that sort of indicates that there IS a settlement of SOME nature...what kind of settlement is it? In whose name?

[marinah]

No, it's a good question...the settlement is in a case by my husband and his sister as executors of their mom's estate, suing their mother's estate attorney on behalf of the estate. His mom's attorney messed up badly, resulting in several other siblings who should not have been beneficiaries, now being entitled to some $$ from the estate. A trust portion of the estate was distributed "improperly" due to his mistake, and now that money needs to be put back into the trust to be distributed to the "new" beneficiaries (who only get this money on a technicality, they were never meant to be beneficiaries).

The purpose of the settlement is to put the money back into the trust that the money was wrongly distributed from. There was some talk about some of the settlement money going to my husband and his co-executor for them to put back into the trust -- but now, any future settlement is going only to the Trustees of the trust (my husband is NOT a trustee) to have them put it back in -- they, as trustees, are the ones who are liable to make the trust whole again and make the new distributions.

So, it won't be in my husband's name, because he is not actually entitled to any settlement -- the trust itself is entitled to the settlement.

Sorry you asked? ;)

[marinah]

Quick update...my husband spoke to the trustee yesterday, and upon gaining a better understanding of the lawsuit/potential settlement, he is calling our case a "no asset", recommending us for discharge, and closing our case!!!! Good news for once!!!!

[DownNotOut]

Woo Hoo!!!!!!

[okiebk09]

Glad to hear. Good luck!!!

[eddiep]

That's the way I see it. I know my case is going to be open a while, especially since I'm making monthly payments to the trustee for a few more months, but I'm just waiting for the discharge. Can't wait to get on with my life.

Joe
Why do you have to make payments to the trustee? Did you buy back an asset?