Full question:
I obtained a student's loan for my son = $11,795 in 1996. filled for chapter 7 Bankruptcy in 1999. Chapter 7 trustee did nothing to stop collection, as a result the loan of 11795 becomes very large due to interest penalties and collection costs added = $29493 in 2009. Trustee before submitting his final closing accounts in 2009 pay = $20,513, leaving a balance of $9483/. this $9483 is now deducted from my Social Security Retirement benefits at the rate of $160/. per month. What is my legal recourse here? what is the law, did the trustee broke any laws? Why would the Trustee pay a partial amount ? What can I do to recover these amounts? Trustee already paid $20513 towards a loan of only $ 11795/ . How can I recover this amount?
- Category: Bankruptcy
- Date:
- State: New Jersey
Answer:
You may have grounds to file a claim against the trustee if you believe they mishandled your bankruptcy case or acted unlawfully. It could be helpful to first contact the supervisor of bankruptcy trustees at the Office of U.S. Trustee, a branch of the Department of Justice. You can find their contact information on the Bankruptcy Court's website. You will likely need to submit a written complaint.
According to Section 704 of the United States Bankruptcy Code, the trustee has several responsibilities, including:
- Collecting and liquidating the estate's property and closing the estate efficiently.
- Being accountable for all property received.
- Ensuring the debtor follows through on their intentions regarding property that secures consumer debt.
- Investigating the debtor's financial affairs.
- Examining claims and objecting to any improper ones.
- Providing information about the estate's administration when requested.
- Filing a final account of the estate's administration with the U.S. Trustee and the court.
The trustee has significant powers to fulfill their duties, including the ability to dismiss a bankruptcy case for valid reasons or object to claims made by creditors. If you believe the trustee did not act in your best interest, you may pursue legal action against them.
For further assistance, consider seeking legal advice to explore your options for recovering the amounts you believe were mishandled.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.