Trustee wants to reopen case

[falcon26]

I went threw my bankruptcy in May 05. Had my hearing with the trustee and it was discharged. I got the discharge papers sometime later. So I thought everything was done and I could move on. Now here we are almost 1 1/2 years later and I get a letter from the trustee asking to see 3 checks from my former bank citibank, which I have not had in almost 2 years now. I have called citibank about this, and was told they don't keep records that far back, only up to about a year. So now what do I do? I can't obtain these 3 checks she wants to see, I can provide an explaination for them but thats it. The other thing is, its been well almost 2 years since my discharge and closing. Why would the trustee ask for something that as far as my creditors go is closed and done with? What should I do?? If she reopens it what does that mean? Does she call my ex creditors and tells them, btw he's not discharged anymore?

Signed Dazed and Confused....

[CATCHMEIFYOUCAN]

falcon26

I went threw my bankruptcy in May 05. Had my hearing with the trustee and it was discharged. I got the discharge papers sometime later. So I thought everything was done and I could move on. Now here we are almost 1 1/2 years later and I get a letter from the trustee asking to see 3 checks from my former bank citibank, which I have not had in almost 2 years now. I have called citibank about this, and was told they don't keep records that far back, only up to about a year. So now what do I do? I can't obtain these 3 checks she wants to see, I can provide an explaination for them but thats it. The other thing is, its been well almost 2 years since my discharge and closing. Why would the trustee ask for something that as far as my creditors go is closed and done with? What should I do?? If she reopens it what does that mean? Does she call my ex creditors and tells them, btw he's not discharged anymore?

That really SUCKS! I'm sorry to hear that. Makes me worry to than, I'm still waiting for DISCHARGE, since the last date of creditor objections was last week (jan 8th). My trustee THINKS I have assets, even though I converted to Ch7 NO ASSETS. I don't even own a house! The best thing I might suggest, is you provide an "affidavit," that you cannot obtain those 3 checks and a statement from citibank that they are unable to retrieve your records from that which is requested, other than the additional statement from you that you can only provide an explaination. Others will chime in here to give you suggestion.

Good Luck, Catchmeifyoucan

[falcon26]

Thanks :-) Yeah I have no idea what to do....

[HHM]

Yeah, that is a crappy situation to be in. And frankly, it is rare for a trustee to dig up something this so long after the fact!

What were the checks for, anyway? Were these checks from a checking account, or convenience checks from a credit card account?

I am little surprised that Citibank does not have the checks imaged somewhere in their system?

Usually the trustee will accept an affidavit from you explaining the situation. About all you can do is talk to the trustee and explain the situation.

[falcon26]

My lawyer from the case said she could write a letter to the trustee explaining what the checks were for but that's about it. The checks were to payoff a personal loan to someone all under the table, and for food etc. What happens if she reopens it?

[HHM]

The checks were to payoff a personal loan to someone all under the table

Well, that is a BK no-no. How much are we talking about?

The funny thing is, this really doesn't affect you that much and will depend on how much you care about this person you paid off. The trustee is looking to recover preferential payments you made (and paying off someone before you filed BK for an under the table loan is probably going to be consider a preferential payment). If the trustee thinks it is worth going after, they will approach this person and ask for the money, if the person does not willing pay, then the trustee will sue them in bankruptcy court. If you fail to cooperate with the trustee, the trustee could conceivably revoke your discharge.

In any event, good luck.

[falcon26]

Yeah I haven't spoken to this guy who gave me the loan for at least 2 years. I know he's moved out of state but I'm not sure where. Looks like I have to live with the reopening of my case. Its not like I can pay anything anyway I have nothing, so what is the worse the trustee could do? I have no savings account no assets and I live pretty much paycheck to paycheck with little or nothing left over after utlities bills food etc...

[HHM]

The trustee isn't looking to get money from you, the trustee is looking to get back money that money you paid this other guy.

However, the trustee could make things bad for you...if the trustee seeks to revoke your discharge (which would be very bad), that would mean all those debts you had that were discharged in your BK, come back to life, so to speak. But, I don't think it will come to that...the trustee will probably reopen your case, fish around for this guy for a while, and if the trustee cannot find him, then this will probably go away. Aside from you providing whatever information that you have to the trustee, this action doesn't really affect you in any meaningful way.

[falcon26]

Thanks for your help HHM its been very useful....

[FoolAndHisMoney]

My lawyer from the case said she could write a letter to the trustee explaining what the checks were for but that's about it. The checks were to payoff a personal loan to someone all under the table, and for food etc. What happens if she reopens it?

Did you disclose this "payoff" on you SoFa? This must be a substantial amount to come back to you after all this time especially after your case is closed.

[falcon26]

This was after I filed and had my meeting of the creditors...it was for $4000

[brokemommy]

wow, thats ugly

I will be glued to this thread as I have a friend in IL that is is same boat. Can't believe all that for $4,000. Good luck hard to believe that there chasing this.

[falcon26]

Yeah I am just going to write a letter explaining what the checks were for but I wouldn't be able to get any copies of them and see what happens....

[Spartan]

This was after I filed and had my meeting of the creditors...it was for $4000

This is odd. Are you saying that you wrote the check to payoff a personal loan AFTER the 341 meeting?

I thought the BK process is only concerned about accounting for your financial situation at the time of filing, with a few exceptions such as tax return, and other anticipated proceed within the 180 days window. Why would they care what you do after filing, especially after 341, when all your assets and liabilities have already been accounted for?

How did you manage to come up with $4000 to write a check, without it being in the BK estate at the time? It has to be exempted, else you were hiding it.

[falcon26]

It was a loan from my 401K at work. Which I am still paying on. And it was after the meeting of creditors that I did this.