Legal Question in Business Law in Nevada

trustees objection to homestead exemption

my huband and I filed personal BK bak in 10/03. We were the sole shareholders of a business which we kept in operation after our personal filing. We had been operating at a loss for over 18months. During the time of 10/03 to 1/04 we operated the business and sold off some equipment to keep it going. We never listed our business on the bankruptcy except for as a dba. Nobody from the courts, trustees office or even my own atty told us to 1. stop operations 2. list the business as an asset 3. even hinted to us the business is automatically included in our personal petition. The funds from the sale of these items went back into the business acct for operating funds. We didnt use it for any personal gain. It was only at the 341 meeting that any of this ''fraud'' came up. We never realized that we had to loisted the business items on our schedules..so now the trustee is saying that we hid the assets of the business. We simply closed it in January we did not sell it, or get any gain from it. The trustee is now seeking all the funds from an excrow acct that is being held from the sale of our home. Our atty has since dumped us and we are without any legal representation. I cannot find any case law that allows this to happen.


Asked on 7/23/04, 1:01 pm

2 Answers from Attorneys
Paul Malikowski Malikowski Law Offices, Ltd.

Re: trustees objection to homestead exemption

The homestead exemption is only subject to a few exceptions. Nevada State law does not expressly make an exception for fraud, but federal bankrutpcy law might. There does not appear to be a quick fix to avoid the consequences of providing false information under oath in your bankruptcy schedules. You will probably need to hire experienced bankruptcy counsel immediately in order to salvage this situation.

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Answered on 7/23/04, 3:31 pm
Stan Johnson Cohen, Johnson, Day, Jones & Royal

Re: trustees objection to homestead exemption

In order to advise you I would like to know who is the Trustee and has he filed a complaint against you. Or give me your BK case number and I will look at what he filed. Then I might be able to advise you.

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Answered on 7/23/04, 10:26 pm


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