Legal Question in Bankruptcy in New York

Can the trustee take assets after Discharge

I filed ch 7 bankruptcy on jan 21st, 2003 in New York. I recieved a discharge on may 19th, 2003. I submitted to my attorney's copies of my tax returns from my CPA. When they filed the bankruptcy they indicated they expected my return to be $1,500, based on what i do not know, as my returns for that year were not done and previous years i got back atleast $5000. I filed my tax returns just before the discharge. And got a refund back close to $10,000. I am now waiting for the case to be closed and he is trying to make me give him the refund. I have read about pro-rating and also the trustee needing to file papers with the government to get the refund directly. Does he have the right to the refund, and can he continue with the collection of assets even after discharge. I thought after discharge but before closing he was supposed to be distributing what assets he collected. No objections from anyone has ever been made in this case but the trustee is keeping it open because he thinks he was lied to by me, when in fact the lawyers made assumptions on my bankruptcy papers. I spent the money once i got it. Please advise.


Asked on 2/07/04, 9:27 pm

1 Answer from Attorneys

Andrew Nitzberg Andrew Nitzberg & Associates

Re: Can the trustee take assets after Discharge

This is an interesting question. What needs to be done is a motion to make the Trustee either object or to close the case. You want to stop sitting on the case and take some action.

While the Trustee has a duty to gather and evaluate the assets of your estate, there must be some knowledge on your part that the return was woefully underestimated for the Trustee to have any action here.

You are welcome to a consultation at my offices at 42 West 44th Street for no fee. Please call for an appointment first; (646) 591-5786.

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Answered on 2/09/04, 4:09 pm


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