Legal Question in Bankruptcy in California

Re: Chapter 13 21,000.00 dollars levied

Wait, when were the funds levied from your account? If it happened after you had filed (which is sounds like it must have), then they violated the automatic stay, and on motion your attorney should be able to get them to refund it. If it happened before the automatic stay, then yes, it will probably take an adversarial proceeding to get the money back.

The Trustee does not have the authority to release the funds. In Chapter 13 you as the Debtor - not the Chapter 13 Trustee own and control your assets. Chapter 13 is different from a Chapter 7 (in which you submit your assets to the Bankruptcy Court and an "estate" is created), in that there is no estate, there are no assets being administered by the Court or Trustee on its behalf. Your problem is that the Trustee is correct - he can't even legally give you that letter, and if he did, it is of no legal value. The sheriff is wrong because they don't understand the difference between Chapter 7 and 13. Cite 11 U.S.C. � 1303 which gives the debtor the authority over the Debtor's property (from 11 U.S.C. � 363) which would normally be vested in the Trustee. Try that first, but otherwise, you are going to have to pursue an adversarial proceeding. Your attorneys' fees are pretty much in line with the going rate. A contested AP is expensive, and frankly I would probably charge you about the same in a retainer to start work on this. Have you asked your attorney about a letter from him explaining why the Sheriff is wrong, and why they are violating bankruptcy law by withholding the money? Give it a try.

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