Legal Question in Bankruptcy in New Jersey

Debtors Rights

Chapter#7 discharged Aug.1998. Trustee went after small settlement from medical malpractice suit, Judge set precedent and granted entire amount to debtor pissing off Trustee. Trustee and her attorney done very little to secure these monies to date.Approximately $1,000,000.00 owed debtor. Debtor would like to know what can be done to 1. have Trustee removed and 2. what is Trustee's obligation to debtor regarding money above and beyond what is owed to creditors? Debtor is in dire financial condition!!!


Asked on 4/16/01, 1:38 pm

1 Answer from Attorneys

Robert Gleaner Robert A. Gleaner, P.C.

Re: Obligation to collect money owed to Chapter 7 debtor

The trustee should be collecting money, but only if it is to the advantage of the creditors. Trustee has no obligation to go after money that would only benefit the debtor. This is the job of the debtor's lawyer. Further, if, in the opinion of the trustee, it would not be of benefit to the creditors for him to collect the money, then an "abandonment" needs to be filed and the money, if then collected, would go to the debtor alone. Much work needs to be done here; however, it seems to me that it needs to be done by an attorney acting on Debtor's behalf. Keep in mind that this advice is based purely on the little bit of information that you have given to me. There may be other factors that would change my opinion. Further, no one can rely on advice from an attorney who has not been retained. If your attorney is not doing the job that you believe he/she should be doing, you should contact another attorney (either me or someone else) to discuss your matter in more detail. I will be happy to assist you. However, you need to call me at 856-546-8010. If you mention LawGuru, there will be no charge for your first consultation. Good luck! Rob Gleaner

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Answered on 6/12/01, 2:14 pm


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