Can I sue a trustee in charge of paying debts during a chapter 7 BK if he takes half of the trust assets for himself?
5 attorney answers
Yes..You can sue trustee. You can sue anyone. The real question is would you win and the answer is most assuredly NO for reasons you see in the prior answers.
I disagree that the case did not help you. Priority taxes were paid which on that portion stops interest and penalties, etc.
WHAT YOU REALLY SHOULD WANT TO KNOW IS WHAT TO DO NOW: SEE AN experienced bankruptcy tax attorney to see if you have priority still non dischargeable taxes and if so, when would you be able to file when they become dischargeable taxes as if income, that will be sometime absent fraud, or other special reasons that tax attorney will discuss with you. A ch 13 can be filed also 4 yrs after the ch 7 was filed, but the tax attorney must make careful calculations of the time periods, days in bankruptcy etc..so find an excellent one in your state soon is my advice. Then just await that time and date!
As attorney Firth states, Trustee's fees are set by statute, and his attorneys fees must be approved by the court. You should have received notice of the motion to approve the attorneys fees, and were given an opportunity to object to them then. Unless you have evidence that funds were taken without court approval, it sounds like you didn't object, and now realize that what is left your non-dischargeable taxes still need to be paid. Either your attorney didn't explain the bankruptcy procedure to you, or you didn't understand the explanation.
If you have evidence that funds were taken without court approval, you should report it to the US Trustee's office. They are the division of the federal Department of Justice responsible for supervising bankruptcy Trustees.
This response is not intended as legal advice. You may need to consult your own attorney to obtain a more specific answer.
So I am confused. Do you think the Trustee and the attorneys working on your case were doing so for free? Have you looked at the court records or even the accounting of the work performed to resolve your case to see what was done to earn the fees?
The costs you are describing sound pretty routine to me. The person you need to blame for this situation will be the face you see in your mirror. Hope this perspective helps!
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Seems to me that your bankruptcy lawyer did not explain the process or you did not understand everything before filing. The trustee’s job was to sell non exempt assets to pay your creditors. If you had non discharge able taxes when you filed, then you would remain liable for those taxes. No, you cannot sue the trustee for doing his or her job.
Trustee fees are set by statute and attorney fees are approved by the judge. The time to object was when the trustee filed his/her final accounting with the judge.