Legal Question in Bankruptcy in Texas

I filed a chapter 13 bankruptcy back in 2005, my bankruptcy was discharged June of 2009. The Trustee's office made a mistake in paying a company and is trying to sue them for moneys paid them in error, somewhere in the sum of 5,000. During the bankruptcy my unsecured creditors where listed to receive 1%. I've been told that the funds recovered (5,000.00) would be applied to unsecured creditors. I believe the funds should be returned to me since these were funds I paid into the bankruptcy plan. The payroll deductions taken out were stopped years ago, if i still owed unsecured creditors I'd think, I'd still be paying into the plan. My question is are the fund rightfully mines and should be returned to me?


Asked on 1/11/10, 6:55 am

1 Answer from Attorneys
Keith Engelke Law Office of S. Keith Engelke

It sounds like the plan provided that the the unsecured creditors were supposed to receive $5,000 and the Trustee made a mistake.

In a chapter 13 you have a contract with the court. You pay an agreed amount to the trustee and receive a discharge from any debts. . If the bankruptcy was discharged, you made all of the payments you were supposed to and no longer owe money to any of the creditors, including the unsecured creditors.

The trustee was supposed to take the money it received from you and pay allocate it among your creditors. The money the trustee failed to pay the unsecured creditors belongs to them, not you.

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Answered on 1/16/10, 8:59 am


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