Legal Question in Bankruptcy in California

Creditor is paid after we filed bankruptcy and were granted discharge

My father had a trust set-up and 2 years after his death my husband and I had to file bankruptcy. The Trustee (a former friend of mine)of my fathers Estate found out that this creditor was not paid (these 2 are friends)and went ahead and paid her plus interest. This creditor was on the bankruptcy and was discharged. What is my recourse to recover my fathers money back into the trust? The trustee is no longer speaking to me, which is a whole other law suit.


Asked on 10/11/04, 11:27 pm

2 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Creditor is paid after we filed bankruptcy and were granted discharge

I will supplement Mr. Johnson's reply by saying also that there is a possibility that the creditor submitted a "claim" into the estate to get paid by that Trustee. (I'm not sure how the procedure works). If that was the case, and the creditor did that post discharge, you can also sue the creditor for breach of the post discharge injunction under 11 USC 524.

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Answered on 10/12/04, 5:33 pm
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: Creditor is paid after we filed bankruptcy and were granted discharge

If the debt was discharged, the trust's trustee breached his fiduciary duty and owes you the money--see an attorney now to begin the process. If the amounts were under $5,000, you can sue in small claims.

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Answered on 10/12/04, 12:44 pm


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