If someone declaring BK has a complaint filed against by one credit card alleging BK fraud, what is the BK trustee's responsibility? Do they have to notify the other credit card firms of the case? or only if the case is lost by the person declaring BK? or not at all? If the case is lost by the person, is the BK trustee's responsibility to notify the District Attorney? Please advise.
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It may depend on exactly what happens.
If creditor A files a motion regarding the dischargability of their debt, such as if you buy a diamond ring on credit for $5000 and file BK 2 weeks later, I believe the motion would involve that debt only. That would not impact your other creditors as the motion would be based on the timing & intent on the debt in question.
If a creditor contends that you are hiding assets, income, etc. then the trustee would probably dig deeper to see what is really going on - and that could ultimately affect all creditors if something was found. But I think it still is the responsibility of creditors to file a claim.Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
(In the 'planning' stage, to file ch. 13 if/when we have to.) -
The BK trustee is not involved in any way when a creditor files an adversary proceeding against the debtor.
As for BK fraud in general, the US Trustee (works for the U.S. Department of Justice) might get involved if the fraud reaches beyond an individual creditor or rises to the level that you should be denied discharge (literally stealing money, etc).Comment
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