Calling all attorneys (Des and HHM)...Any Recourse?

[CoBelle]

After reading another thread on 'how it's supposed to go', I wondered if there is any recourse when things don't?

I had a house appraised at $1.56mil, tax assessed at $1.3because it didnt' include $200k of improvements. A crooked REceiver was trying to sell it to a friend for a lowball price, but there were higher offers, including mine, which he ignored. I filed a Ch 13 to exert my right to buy out minority share, but ex managed to get that dismissed on a weird technicality. I filed a 7 and advised the Trustee that the house was being sold at undervalue and that I had the stats and higher contracts to prove it. So..the trustee says: NO to ex's quest to get the house abandoned....but 2 days later does a com[plete 180 and abandons thehouse after 'talking to the Receiver who stands to gain $200k ifthe house is sold to this particular buyer'. (And after the Trustee abandons, I'm wrongfully evicted even tho there is no mortgage or foreclosure andthe hosue is secretly sold to 'friend' and my homestead is given away.)

So: it seems my best option is to sue the Receiver who I can prove did some very BAD things.

But: within the bk world, is there any recourse when a trustee is maybe paid $$$ to let an asset go...even tho it is valued at $1.56mil but sold for $600k in a fuggy deal? Or is that just up to the Trustee's discretion?

[CoBelle]

No one has any idea on this?
I guess my time might have run out anyway. I doubt anyone is unhappy when their house is abandoned....and if I didn't have a crookedfam law court, I would have been very happy.
So I admit it is a bizarre kind of question.
I just believe that the trustee is playing ball with X's attorney who was a 7 trustee himself and may have had something to do with getting the first appointed trustee replaced by the current one.
Conspiracy ? Well, when you've been living in my shoes,it's pretty easy to go there. HA!

[BKParalegal]

A trustee only makes money if they are adminstering assets, and so regardless if the ex's attorney was a former trustee. Your trustee would not give up $50,000 plus in administrative fees to help a friend. A trustee will abandon an asset for various reasons, including that the adminstering of the asset would not benefit the creditors (a trustee can't just sell something to make a profit for themselves). or if there were provisions in the divorce decree regarding the dissolution of assets. Divorce Decree's are one of the few things that can trump the normal course of a bankruptcy.

Good Luck

[CoBelle]

Funny you should say that BK....my divorce decree said I had a priority right to buy out X's share of my home but instead of letting medo that, the house was abandoned to the Receiver to sell to the lowest bid.
So much for trump cards.

I do see your point however that if the TRustee sold my home for say $800k and paid off all secured creditors adnmy homestead, she would get 10%of what's left andnot 10%ofthe sale price. But since X and attorney gotaobt $300k of that sale price, if they paid her $30konthe side to let it be sold to xs friend, then she came out ahead without doing any work.

[AngelinaCatHub]

I'm no lawyer, but just to be courteous and answer, you might consider and AP. This would bring it to the Federal Court's observation regarding the procedure as well as a possible "bought" Trustee.

If You PM Des and MSbklawyer and a couple others, with this link perhaps you could get some advisement.

Your problem is deep for us here and could possibly taking advantage of your situation at your expense. You could make out well in the end if you prevail. 'Hub

[despritfreya]

CB,

As BKP points out (and you already know my feelings about conspiracies), the Trustee is unlikely to play games. You have always told us the property was worth 1.5 mill, but that, if I recall correctly, is based upon an appraisal done several years ago. Did you do an appraisal around the time you filed bk? Your opinion of value is not relevant as it relates to the Trustee's decision regarding an asset of the estate. If, in her best business judgment, the property was not going to generate a benefit to the unsecured creditors, she simply was not going to administer it. This "business judgment" is not just based upon the value of the asset. It is also based upon the anticipated cost of litigating with others claiming a right to the proceeds (receiver, your ex, your prior DR attny etc.)

Your actual situation is so complex there is no way for us (including me) to determine if there was a wrong committed by the Trustee when she decided to settle with the receiver and your ex and then abandon the asset.

Des.