Legal Question in Credit and Debt Law in California

Any creditor of a bankruptcy debtor can file a proof of claim in the pending bankruptcy case. If the debtor has assets that can be distributed, then that creditor may receive a payment for all or part of his claim if the court deems it valid. A creditor can also notify the trustee who has been assigned to the case of any alleged transfers that might be preferential or fraudulent. The trustee will decide whether to pursue an action to get any such payment back and if the trustee succeeds, then the funds normally become part of the bankruptcy estate and would be available to pay the costs of administering the estate (including a fee to the trustee) and then be distributed to creditors according to bankruptcy law.