Legal Question in Bankruptcy in Maryland

Bankruptcy/Attorney Abandonment/1st Trustee Neglect, etc.

Filed Ch 7 Apr99. Meeting of Creditors Aug99. Only one thing pending - equity in home. Appraisal in Jun99. Our original lawyer disappeared and left us to deal with his no longer working spouse. This lawyer responded to Trustee in Dec99-at the time, no equity (after selling/carrying costs). Lawyer told us Trustee said she was most likely going to give up claim to home. Neither the Trustee or our lawyer did anything for 7 months. Now new Trustee. Upswing in property value possible $10-12k. New Trustee wants the current value of home + the funds paid down since filing ($7.5k) + all current and future prepaids that we've made since filing (if we were to leave now, about $2.5k). Is this reasonable and/or legal? Or is he trying to bully us since we don't officially have a lawyer. It's our understanding that value of sales price and equity are "frozen" at the time of filing, not a year and a half later. Trustee has taken absolutely no liability or responsibility for the home since the case began. We pay the mortgage and all bills associated with the property. Also, Trustee states that we'll owe him rent at fair market value (even though we paid the mortgage & maintenance fees) for the last 14 or so months.


Asked on 10/26/00, 5:57 pm

1 Answer from Attorneys
Lawrence Holzman Holzman Law Firm, LLC

Re: Bankruptcy/Attorney Abandonment/1st Trustee Neglect, etc.

Yes, this trustee is trying to bully you. If your facts are correct as stated, then at a minimum, you have administrative claims against the estate for the value of what you have put into the property during the pendancy of the bankruptcy (i.e. if you hadn't paid the mortgage there would be no property as the bank would already have foreclosed). There are plenty of options for you but unfortunately, you're going to to absolutely NEED a good consumer Bankrtupcy Lawyer if you want to make it work. You're going to have to pay some additional attorneys fees to do that, but compared to losing your home or paying the amounts the trustee appears ready to take from you, such fees would be modest.

My own bankrtupcy practice is primarily commercial, so I may not be able to assist you -- but, as a courtesy to a lawguru participant, if you want to give me a call, I will direct you to an attorney in your area who really knows how to do consumer bankruptcy work. Please note, there are many attorneys who will file simple chapter 7 cases; However, it may be hard for you to determine which ones will actually know the more subtle and sophisticated issues that will enable him/her to handle your aggresive trustee.

I am also interested in the details about the attorney who "abandoned" you. If you give me a call, I'd like to hear those facts as well. Depending on facts, that attorney may have additional obligations to you.

I'm available at the number below:

Lawrence R. Holzman, Esquire

Joseph, Greenwald & Laake, P.A.

6404 Ivy Lane, Suite 400

Greenbelt, MD 20770

(301) 220-2200

fax (301) 220-1214

Disclaimer: Please note that the posting of this response is not intended to constitute legal advice. You should contact an attorney to obtain information applicable to your situation. This posting is not confidential or privileged and does not create an attorney/client relationship.

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Answered on 11/16/00, 5:12 am


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