We filed for bankrupcty two years ago this December. Before the 180 days was up, my wife got an inheritance of 10,000. We just received the check in April and notified our attorney. How long does the trustee have to claim that money for the creditors? It has been almost 6 months now.
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Read More Answered By: Alicia Beeler Villines |
I had to consult my books for this one, because I really did not know the exact time limit a trustee had to claim the money. Well, it turns out he doesn't have one, and it also seems that he is under no duty to actually "claim" the money.
Rather, this money is considered part of your "bankruptcy estate." If it cannot be exempted and the trustee has not abandoned his interest in it, it's technically already his. So the question is "how long does the trustee have to wrap up the administration of my case?"
According to 11 USCS Section 704(1), the trustee has a duty to "collect the property of the estate [and to] close the estate as expeditiously as is compatible with the best interests of the parties in interest." If he doesn't do this, he risks being liable for the 10k himself. But, as it's been said that "the wheels of justice turn slowly", six months is not such an inordinately long time. Has there been a "bar date" set (a time limit) for creditors to file proofs of claims? Have any of these been received? If so, the next step would be a time allowance for objections to proofs of claims to be filed. After everyone has had a chance to say how much they think they are owed, and time for any disagreements about their claims to be settled, then the funds will be disbursed and your case closed. |
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