Chapter 7 Bankruptcy?
I filed chapter 7, back in April…At least thats when I gave the attorney the retaining fee. Upon my next visit to his office, I paid the filing fee of 5 for initial papers. This was a time sensitive issue because there were garnishments attempting to take place within a matter of weeks. Attorney dragged his feet, and the filing was delayed 30 days after I paid for all services to be rendered to me. By this time, the garnishment had begun to take place. Being paid bi-weekly, this company has taken over 0 from me in the course of 8 weeks.
They are supposedly allowed to keep 0. Problem is, they have refuned 0 to my attorney, and my case has went before court June 10, 2009. The attorney is delaying refunding my money to me, telling me that he has to wait to see what the trustee wants to do with the money. I’ve personally talked with the trustee, and he told me he has NO interest in those funds. I relayed this information to my attorney, and he still tells me that he has to talk with the trustee.
I’m really pissed at this point, and I’m considering lodging a complaint against him because had he filed the papers in a timely manner, the garnishments wouldn’t have never occurred. Secondly, if the trustee has no interest in the funds, then why is he hanging on to them.
Worst yet, the attorney called me into his office July 11 to get matters taken care of. The only thing I did in his office was watch him go through my file, and he made copies and put them in an envelope while I watched.
I signed no documents that day or anything, but I did get ot view my check from afar. Am I supposed to wait until the case it totally closed before getting my money back or should I file a complaint with the Milwaukee Bar association.?
I think your main issue is the your attorney is either not telling you some details, or you are not hearing them in a way you understand.
I am an attorney and I actively practice bankruptcy in Pennsylvania. I will do my best to take what you are saying and interpret what it sounds like to me.
You paid in April. Great, that is step one. No work is done on any bankruptcy until it is paid in full.
On your next visit, you paid the filing fee. Your petition would not have been filed until after you paid that fee.
Regardless of your desired timeline, the timing of a bankruptcy filing depends on many things. Some examples are the last time you made a payment to any creditor, when you took the Consumer Credit Counseling Course and when you had answered all of your attorney’s questions on your information needed for the petition.
Filing within 30 days after you finish paying is actually quite fast. If you need to be filed in less time than 45 days, most attorneys will charge you a rush fee.
Now, $210 has been returned to your bankrupt estate by a creditor who took too much. The trustee verbally told you he has no interest in it. Great, you are 10% of the way to getting that money back.
The trustee makes recommendations to the Judge, but the Judge makes all of the final decisions. If the trustee has no interest in the funds, his report and recommendation to the Court, when the time comes, will be to return the funds to you, unless someone else makes a claim to the funds.
Other creditors have a right to make claims on those funds and until the time has expired to make that kind of claim, those funds will be held in your bankrupt estate and can not be given back to you.
The determination regarding return of your funds will only be made by the Judge right before your case ends.
Look at the papers you were given on the 11th. They likely include instructions for taking the second class. You only have 45 days from your 341 hearing, so you need to get on that or your case will be dismissed.
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July 15th, 2010 at 11:49 pm