The debtor recently got a discharge on his bankruptcy, and I am listed as a creditor on his bankruptcy because of the house we had together. He and the bankruptcy trustee made a compromise that he could have his one and only asset back, his truck, which he would owe trustee $3,000. Recently, I discovered on social media his girlfriend is selling items I know is his. The reason I know is because one of the items she is selling we had when he and I lived together. She is also selling a hot tub and a portable dishwasher, which could have been put on credit cards he filed bankruptcy against and possibly use the money to get his truck back. I thought I would ask before I waste the bankruptcy trustee's time, but I want to do the right thing with knowing such evidence. Thanks!
andra A Kuhn Esq.Chapter 7 Bankruptcy AttorneyConcord, NH ·
You can tell the Trustee whatever you want to tell him/her, it is up to him/her what they do with that information and whether they want to inquire further. If you have knowledge that the Debtor is selling assets that were either not disclosed or which are property of the estate that were not exempt or abandoned, then it is important to share that information with the Trustee.
Years ago there was an unofficial limit of something like 2 million dollars before they investigated potential bankruptcy crimes.
The problem I have with your narrative is that when he filed his bankruptcy he probably listed many items in his Schedule B, or lumped them together as household goods and furnishings, and generically labeled them that way. All of what you've described could have been scheduled and abandoned by the trustee.
And when you buy things on a credit card, unless its a department store card, the things are yours and the debt is unsecured. If its a department store card like Rooms to Go or Pier 1 or something like that, which may be secured, the items are free of all credit card claims.
You are free to tell the trustee whatever you like, but other than that, without some hard core evidence, you are probably wasting your time. On the other hand who knows? Maybe he "did it" maybe he didn't.
Attorney Elie carefully explains those issues on secured vs unsecured assets. Thus, a normal credit card it will be owned free and clear. You might want to send proof of all you found to the trustee. Now the trustee only receives $60 in a case absent there being assets that are NOT exempt. He can sell any assets that are NOT listed also as no one can exempt an asset not listed. Now once 30 days goes by after the 341 meeting or a continuance thereof, the exempt assets that were not objected to the debtor could sell and use to do what is desired including paying for a truck if possible. As a practical matter, if you look at what ALL your debt is compared to the entire amount of unsecured debt your debt might be a drop in the bucket and thus you don't want to waste paying for attorney fees to end up recovering and receiving far less to your own wallet or purse! On the other hand, some persons want to fight fight fight and don't give up and don't mind spending money as it makes them feel good! So take that action in light of the above that makes you feel good! Have a nice weekend too.
You have the difficult task of balancing fair play under law with any lingering sense of vindictiveness.
In that state of moral/ legal ambiguity contacting the office of the panel bankruptcy Trustee is common to let the experts sort out the legal issues.
