Trustee playing games?

[fido42]

I filed without presumption of abuse, Chapter 7. Three months later, the discharge occurs without incident. I had to let a house go in Florida but I intended to reaffirm my primary residence in Missouri. The only debt was the Florida home, a credit card (not much), and some furniture with Nebraska Furniture Mart (which has been a fun little trip, I gotta say).

My real issue is that the trustee decided he wanted $15,000 from me so that I could keep my house. Oddly, he thought he could sell it for $30,000 more than 3 other houses for sale on my street with the same size/features. My attorney pointed out to the trustee that even if he did sell it for that, he'd clear barely $3,000 due to selling costs, so we counter offered in that range.

He's just sitting on the offer and has been now for 2 months. My attorney warns me that he can just do this as long as he pleases. Is that for real? How long can a trustee fiddle with our lives? So, we're supposed to be reasonable but they don't have to be?

Anyone seen anything similar in terms of non-responsiveness and a lack of logic?

[backtoschool]

My trustee charged my mother for two $500 checks that I wrote to her to pay doctor's bills and expenses. That made me a $1,000 asset case, so yes trustees can be unreasonable. (I paid the $1,000 to the trustee, my mother did not pay the trustee of course.....but they went after HER and it scared her and that upset me. )

I think the trustee is negotiating and holding out for more money. My guess is that he doesn't think he can get the full $15,000 but he wants more than you offered.

[PacificBlue]

I'm sorry, but that just makes me sick! Trustees actually getting a percent of what they suck out of people. It shouldn't be that way. They should simply be paid by a salary and not both a salary and commission. To make them on a "commission" like a used car salesman.... makes me want to vomit.

[tdawg]

I filed without presumption of abuse, Chapter 7. Three months later, the discharge occurs without incident. I had to let a house go in Florida but I intended to reaffirm my primary residence in Missouri. The only debt was the Florida home, a credit card (not much), and some furniture with Nebraska Furniture Mart (which has been a fun little trip, I gotta say).

My real issue is that the trustee decided he wanted $15,000 from me so that I could keep my house. Oddly, he thought he could sell it for $30,000 more than 3 other houses for sale on my street with the same size/features. My attorney pointed out to the trustee that even if he did sell it for that, he'd clear barely $3,000 due to selling costs, so we counter offered in that range.

He's just sitting on the offer and has been now for 2 months. My attorney warns me that he can just do this as long as he pleases. Is that for real? How long can a trustee fiddle with our lives? So, we're supposed to be reasonable but they don't have to be?

Anyone seen anything similar in terms of non-responsiveness and a lack of logic?

If you don't mind letting the house go, maybe that might make life a lot less stressful for you. Good luck with getting this resolved! :-)

[AngelinaCatHub]

CHAPTER 7 BANKRUPTCY TRUSTEE FEES


Written by Michael G. Doan.

[frogger]

I'm sorry, but that just makes me sick! Trustees actually getting a percent of what they suck out of people. It shouldn't be that way. They should simply be paid by a salary and not both a salary and commission. To make them on a "commission" like a used car salesman.... makes me want to vomit.

Actually, the commission part of the deal is a big motivator, as it should be. Never forget that the trustee is working on behalf of the creditor. The trustee is not there to help you, be your friend, or working on your behalf.

Adding commission to the deal sweetens the pot for the trustee in order for them to get as much money as they can for the creditor. That is their job and I have no problem with it.

This is my first time in sitting on the side of the fence going bk, so I understand where you're coming from. I have been on the other side of the fence as a creditor many times, and I have always wanted for the trustee to do their job well. I can't wish for anything differently now than for them to just do their job. Nothing more, nothing less.

[AngelinaCatHub]

I filed without presumption of abuse, Chapter 7. Three months later, the discharge occurs without incident. I had to let a house go in Florida but I intended to reaffirm my primary residence in Missouri. The only debt was the Florida home, a credit card (not much), and some furniture with Nebraska Furniture Mart (which has been a fun little trip, I gotta say).

My real issue is that the trustee decided he wanted $15,000 from me so that I could keep my house. Oddly, he thought he could sell it for $30,000 more than 3 other houses for sale on my street with the same size/features. My attorney pointed out to the trustee that even if he did sell it for that, he'd clear barely $3,000 due to selling costs, so we counter offered in that range.

He's just sitting on the offer and has been now for 2 months. My attorney warns me that he can just do this as long as he pleases. Is that for real? How long can a trustee fiddle with our lives? So, we're supposed to be reasonable but they don't have to be?

Anyone seen anything similar in terms of non-responsiveness and a lack of logic?

If you have been discharged, you might take a chance and address the Court Judge about this. I would tell your lawyer you will do it if he will not, and get that guy on track. The Trustee is a lawyer, and this does not look ethical, and it is tough to believe he would drag this on. Particularly if you were a non asset case, and no abuse case. 'Hub

[justbroke]

He's just sitting on the offer and has been now for 2 months. My attorney warns me that he can just do this as long as he pleases. Is that for real? How long can a trustee fiddle with our lives? So, we're supposed to be reasonable but they don't have to be?

The important part, the discharge, is done! Ask AngelinaCat and AngelinaCatHub how they waited almost 2 years for their case to close. The panel trustee doesn't need to "rush" things.

As for the fiddling, they are not. When it comes to large assets, things move slowly. If this has only been 2 months, I'd say... you are impatient. If the (panel) Trustee doesn't accept your offer, then you and your lawyer will just respond to any complaint the (panel) Trustee makes with the court. Remember, just because you offered something, doesn't mean the (panel) Trustee has to accept it.

Trust me, the (panel) Trustee isn't spending a lot of time and effort on this. It's probably on the back burner. Your attorney simply calling the (panel) Trustee's office and asking for status... should help you with your wait.

I'm sorry, but that just makes me sick! Trustees actually getting a percent of what they suck out of people. It shouldn't be that way.

Umm... the Panel Trustee program is a lot different than you think. In many States, the Panel Trustees are regular practicing Bankruptcy Attorneys. They only earn money if they find assets!!! Otherwise, they make about $50-60 for each case. That's less than one-hour of an experienced bankruptcy attorney's time!

Now the United States Trustee (UST) is a salaried federal government employee. The UST does not receive commissions.

The commission-based incentive system is the best. You basically are telling the panel trustee (Tee) that if they find non-exempt assets, then they can make a certain commission on them. So, it behooves the Tee to find things, otherwise, they really aren't paid enough. This makes them "look" harder at assets. At the same time, this makes them very quickly shy away from cases where there's few assets, because they'd be wasting their time (and money) pursuing that.

If you made the Tee a salaried federal employee job... I don't think as many assets would be recovered, and the unsecured creditors would probably squeak real loud.

Sorry, but I think this system works.

[keepmine]

The thing is, he is an asset case.
This is where some patience comes in. Real estate prices aren't going back up. Just wait him out. At some point, the trustee will want to ring the cash register and stamp closed on this case.

[fido42]

Forcing his hand

... If this has only been 2 months, I'd say... you are impatient. If the (panel) Trustee doesn't accept your offer, then you and your lawyer will just respond to any complaint the (panel) Trustee makes with the court. Remember, just because you offered something, doesn't mean the (panel) Trustee has to accept it.

Trust me, the (panel) Trustee isn't spending a lot of time and effort on this. It's probably on the back burner. Your attorney simply calling the (panel) Trustee's office and asking for status... should help you with your wait.

I don't disagree that I'm probably a tad impatient. All of us experiencing this would like to get our lives back on track.

That said, my attorney has contacted him twice without response. My attorney also warned me when the case began that this trustee was the worst in the surrounding counties. So much so that some attorney's had stopped doing bankruptcies in his county. So much so that my attorney asked me if I was willing to MOVE to an apartment in another county and file in a few months.

Now I get it.

He's suggesting that we sit on this for another couple months and then file a petition to the court to force the trustee to abandon the property. My attorney says that this is often the solution with this guy.

Weird that there are no standards of protocol, I guess.

[justbroke]

He's suggesting that we sit on this for another couple months and then file a petition to the court to force the trustee to abandon the property. My attorney says that this is often the solution with this guy.

Sounds like a plan.

As for protocol, the Trustee is following the protocol, but is probably buried in cases. Remember, he's not working on your case every minute. It's probably burred under other cases. You attorney can file a Motion to Compel Abandonment or something if the Trustee takes to long.

The reason attorneys don't like to "bother" (pester) the Trustee, is because the Trustee then gets a distaste for that attorney and gives them a hard time in the future. So, everyone tip-toes around these Trustees.

[Widdle]

I don't disagree that I'm probably a tad impatient. All of us experiencing this would like to get our lives back on track.

That said, my attorney has contacted him twice without response. My attorney also warned me when the case began that this trustee was the worst in the surrounding counties. So much so that some attorney's had stopped doing bankruptcies in his county. So much so that my attorney asked me if I was willing to MOVE to an apartment in another county and file in a few months.

Now I get it.

He's suggesting that we sit on this for another couple months and then file a petition to the court to force the trustee to abandon the property. My attorney says that this is often the solution with this guy.

Weird that there are no standards of protocol, I guess.

fido42

What "District" did you file in? There was a Newspaper Article regarding Trustee's having a problem selling assets (if at all) in a timely manner due to the economy.

You probably filed in Missouri, though.

[PacificBlue]

Thanks Frogger & JustBroke, I think I read that in another thread, but since I'm a humane person.. it didn't soak in.

And I suppose the CC companies didn't think that power would ever be abused! To me, it is wrong. In my thoughts a trustee should be as impartial as a judge. Nothing to gain, nothing to lose. (the rest of what I have to say on this would be using discussing names, and comparisons). If/When I ever have to face a trustee, I think I will have my mouth sewn shut. There is no way I could ever.. ever be before some one that has the potential of being a.... Opppps.. I almost went off..

[fido42]

Missouri

fido42

What "District" did you file in? There was a Newspaper Article regarding Trustee's having a problem selling assets (if at all) in a timely manner due to the economy.

You probably filed in Missouri, though.

I did file in Missouri. Frankly, I wish I was still in Florida, even with the changes in bankruptcy law I would have faired much better. Also wish I was in Florida for a number of other reasons!

[BCA2009]

Based on the way that the trustees get a "commision". If there were some assets, especially when the debtor is willing to buy the asset back (equity in a car, etc.). Wouldn't this be a little incentive for the trustee to give you the benefit of the doubt if you were on the fence regarding meeting the Chap 7 requirements?

It would just seem like human nature that if the trustee could easily make $2000 off of a case, he might not be quite as fast to try to push them into Chap 13. Obviously he couldn't overlook glaring issues. But it would seem like in gray areas he might want to get the commission.