Legal Question in Bankruptcy in Kansas

Trustee's rights after discharge

In September of 2003 we got a letter from the chapter 7 trustee stating that we had held back information concerning an insurance settlement, and he has motioned to reopen the case. I immediately contacted our attorney on the matter and he asked for all documents from the insurance company. I got and gave them to him, then he turned those over to the proper authorities. I had to round up $2000.00 because it looked like the trustee would settle on that. As it stands, our attorney keeps motioning for extentions to try and work this out of court. I guess the money wasn't enough. Right now we are in the dark and we have had no peace of mind for months now. I'm being accused of falsifing information, so I provided the proof from the insurance company. They have very good records with time and dates, etc. It appears something is amiss, like maybe these docs have not traveled the proper channels. Is that possible? What are my rights after discharge concerning this matter? What are a trustees rights after discharge concerning the three months I was told to wait before cashing the insurance check? Thanks


Asked on 1/14/04, 3:28 am

1 Answer from Attorneys
James Rupper Powell, Brewer & Reddick

Re: Trustee's rights after discharge

You have an attorney, your question should be addressed to him.

If you failed to mentioned that you had a potential settlement on a tort claim, then you deceived the court and made a false statement on your schedules. The trustee has a right to reopen the case and obtain the proceeds of the settlement for the benefit of the creditors. Your attorney has been trying to negotiate a settlement. I suggest you discuss the current strategy with him.

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Answered on 1/14/04, 7:49 am


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