Can the trustee just take the money from my bank account after I filed chapter 7? - Bankruptcy Law Questions and Answers- LawQA.com

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Can the trustee just take the money from my bank account after I filed chapter 7?

I filed chapter 7 bankruptcy and I did not list all my bank assets which were $11,000 cash in my bank account. My attorney filed a wild card exemption. My attorney withdrew as counsel. My court appointment is scheduled for August 11, 2014. I found out the trustee took $10,000 from my bank account.

Answer By Dorothy G Bunce
A Fresh Start
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If the property wasn't disclosed in your bankruptcy, then the Trustee had every right to seize it. If the property was disclosed, but wasn't exempted, then the Trustee had every right to seize it. If the property was disclosed and was fully exempted on Schedule C, then you may need to sue the trustee to get this property released and for the court to determine that this money was eligible to an exemption. So take a look at Schedule C & file an exemption, if needed & available.

Answer Applies to: Nevada
Replied: 7/30/2014

Answer By Darren Aronow
The Law Office of Darren Aronow, PC
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They cannot just take it, they would have had to file a motion to get permission to. And if it was exempt from the wildcard then they certainly cannot take that money under any circumstances.

Answer Applies to: New York
Replied: 7/23/2014

Answer By Peter M. Lively
Law Office of Peter M. Lively
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A chapter 7 trustee has a duty to collect non-exempt assets. You should consult with potential replacement counsel to review your options.

Answer Applies to: California
Replied: 7/23/2014

Answer By Ronald K. Nims

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No, the trustee can't just take money from your bank account when you file a Chapter 7 but the Bankruptcy Court can. I'm sure the trustee filed a motion for turnover with the court and you didn't file any response to the motion. Then the Court issued an order forcing your bank to give the money to the trustee. Your attorney probably withdrew because she/he found out that you had committed bankruptcy fraud by failing to list all your assets. Losing the $10,000 might not be the worst of your problems, I'm sure that the trustee has notified the U.S. Trustee that she/he suspects you've committed bankruptcy fraud and you could be facing criminal charges. DO NOT LIE TO YOUR ATTORNEY. DO NOT LIE ON YOUR BANKRUPTCY PETITION. DO NOT LIE WHEN UNDER OATH. DO NOT LIE TO YOUR SPOUSE/GIRLFRIEND (okay, that last is probably a bit far as legal advice but my wife was reading over my shoulder). Certainly, money problems can seem terrible, but - compared to going to prison - money problems are easy.

Answer Applies to: Ohio
Replied: 7/23/2014

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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The trustee must have had a court order to do that. There was a recent U.S. Supreme Court case on surcharging exemptions. You need an experienced lawyer to look into this ASAP. I expect the appeal time has run or is running. And FYI - failing to list all your assets is a federal crime for which you can go to jail.

Answer Applies to: California
Replied: 7/23/2014

Answer By Scott Goldstein

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Unfortunately, if the exemption was insufficient to cover the funds, yes.

Answer Applies to: New Jersey
Replied: 7/23/2014

Barnhart Law Office
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Yes, any asset you own at the time you file bankruptcy becomes property of the bankruptcy estate. This includes unlisted assets and assets you failed to disclose. Intentional failure to list or disclose an asset is a federal crime. You should seek the assistance of a criminal attorney and a bankruptcy specialist.

Answer Applies to: Nebraska
Replied: 7/23/2014

Answer By Michael Johnson
Law Office of Michael Johnson
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If you did not properly disclose the assets, you may not be able to use the exemptions.

Answer Applies to: Florida
Replied: 7/23/2014

Answer By Mark O. Grater
The Law Office of M Grater LLC
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The trustee has the right to go after any non-exempt fund on behalf of your creditors.

Answer Applies to: Connecticut
Replied: 7/23/2014

Answer By Aunna Peoples

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The short answer is yes. The next questions are, were the funds an exempt asset and why were they not listed in your schedules? In certain circumstances the funds would remain an exempt asset, even if you failed to list them. You should discuss this with an attorney prior to your scheduled court appearance.

Answer Applies to: Missouri
Replied: 7/23/2014

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