I have a lost case. My atty took me to file chapter 7. I transfered house 1 year 11 months ago. Now my atty wants to withdraw the case, after making a settlement with a creditor outside of the bankruptcy court. NOW THE TT IS PISSEDD!! TT wants the transfer reversed. Where do I stand??
-
-
Your ATTORNEY did this???? Settling with a creditor outside of the BK is one of the Cardinal rules NOT to be broken. But you know this.
When did he/she file your case? Please give a few more particulars. Then the forum members will be better able to try and help.
Welcome to the Forum, by the way. It may not seem like it now, but the situation WILL get better.
Last edited by AngelinaCat; 09-09-2009, 08:03 PM."To go bravely forward is to invite a miracle."
"Worry is the darkroom where negatives are formed." -
Wow, and we thought our attorney was crap. I believe you now OWN your lawyer. He had better pick up the pieces as I believe you have reason to go to his State Bar for his number. I also believe you have "friends" in the bk block (those who know the facts of the situation). They really don't want to harm you but the only way they can chastise that bum is in your case. Unfortunate.
Please keep us posted. This is really a wierd deal. 'HubIf I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.Comment
-
Okay who made the settlement? yourself or the lawyer?
On the Home transfer did you receive fair market value for the home? Who did you transfer it to? What is the expected equity of the home?May 31st, 2007: Petition Filed by my lawyer
July 2nd, 2007: 341 Meeting Held
September 4th, 2007: Discharged and Closed.Comment
-
the Atty made the settlement. I didn't know the law. Bk was filed 1year 10 months after transfer of house. At the moment there is prolly 15-20k equity in the house. At the time of transfer there was about 80k which wastaken out of the house. I transfered the house to my spouse. Any sugestions on how this can be fixed? Or will I lose everything?Comment
-
Why did you transfer the house and equity to your spouse?Comment
-
Okay he should never have made a settlement. What you should do is ask him to continue or that you'll have to file a complaint against the bar association for his representation since he's gotten you into hot water over this. If he's not willing to he should refund your funds for such poor representation.
Why did you transfer the house to your spouse?
What did you do with the 80k?May 31st, 2007: Petition Filed by my lawyer
July 2nd, 2007: 341 Meeting Held
September 4th, 2007: Discharged and Closed.Comment
-
The house was transfered to pay outstanding CC bills for my spouse. Thats where the 80k was spent on. Also whatever was remaining was paid for the mortagage payments and living cost. We dont make much money. Its very hard to survive. We have all the proof.Comment
-
You have two issues. One significant, one not.
The not significant one is the settlement your attorney made pre-filing. If the TT wants those funds back he can get them from whoever you paid.
The transfer of the asset to your wife is your big problem. I don't see any way to fix this situation. You made a transfer of real property with the express intent of shifting an $80,000 asset to her prior to you filing bk.
I'd be all over my attorney today asking why he let this happen.Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -RickComment
-
What if we have all the docs. stating how the 80k was spent? B/c the TT is suing my spouse for the 80k or the real property. TT is stating that its an Fraud. When we were not trying to Fraud no one. Is there a way out of this??Comment
-
Unfortunately, ignorance of the law isn't a defense. What you did was in fact fraudulent per the bankruptcy code regardless your intentions. Your options are limited.Originally posted by lostcase View Post
You will most likely have to surrender the property or have your wife refinance the home and give the TT $80,000.
The other option you have is to try to make a settlement with the trustee. Maybe offer him $25,000 or so.Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -RickComment
-
Whose creditors were paid with the equity draw out of the house?
If it was your's, I would read the following case summary, and look up the cases it references.
http://www.fedbar.org/Bankr_Richmond.pdf
This case deals with the Borgata Casino causing difficulties because they claim a transfer to the debtor's spouse for $1 (2 years prior to filing though) was fraudulent and should have caused discharge to be denied.
In this particular case, the court found that wasn't he case. He transferred for $1, but then the wife was able to get a mortgage for the equity in the property and used the proceeds from that mortgage to pay off the debtor's creditors.
It may help you find a was to present the situation to the trustee that doesn't make the sale appear fraudulent.
Good luck.Comment
-
We paid my spouses CC bills. Since we are married aren't we one?
We also used the left over monies to make martagage payments.Comment
-
Is there any way this case can be dismissed?? My atty is saying that he can send a motion for withdrawl or dismiss and the case will be dismissed from the judge's approval and he is very sure the judge will approve it. Is this true? Help would be appreciated very much.Comment
-
Why don't you just have your wife file jointly with you? Wouldn't that take the "fraud" out of the transfer?Comment
Comment