Legal Question in Bankruptcy in California

After a BK has been dismissed / not allowed

Does a BK trustee (of the court) still work on an estate after fraud has been proven and the case dismissed from court?

Does the trustee have to show that he now has authority to change a promissory note and receive payments of said note on behalf of the estate?

Is there time limit for the trustee to work on this case? A 3rd party who is paying on said note is withholding payments until the court/trustee lets him know what to do.


Asked on 10/10/07, 6:26 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: After a BK has been dismissed / not allowed

Once a BK is dismissed, the BK court should no longer have jurisdiction in the case. The trustee, however, may still investigate the fraud and cooperate with law enforcement and/or the Justice Department with an eye toward prosecuting the party who committed the fraud.

I think you're asking whether payments still need to be made into a Chapter 13 plan after the case is dismissed. If there's no case remaining, then payments should revert to the written agreement. The 3rd party making payments should be sent a notice of dismissal.

These are general observations and, not having seen your court's order nor the written agreement, I cannot give you specific advice.

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Answered on 10/10/07, 6:52 pm


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