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Chapter 7 Trustee: Interest Bearing Account and
Since the interest paid on deposit accounts is so small, trustees are not moving estate funds into money market or CD accounts
Sent from my iPhone
On Nov 5, 2014, at 8:19 PM, "mike@cheklaw.com [cdcbaa]" wrote:
Listmates,
Any comments on whether the following actions of the Chapter 7 Trustee should be challenged by creditor/interested party?
1. Trustee holds about $500,000 cash which will not be distributed to creditors for at least 6-12 months until litigation is resolved. Despite interested party's request, Trustee refuses to put cash in interest bearing account for unspecified reasons and instead puts it in a non interest account. Code Section 345(a) suggests that the Trustee safely deposit money to yield the maximum net return; and
2. Trustee collects monthly rent from a third party tenant (around $1000 to $1500/mo.) on a modest residential property, but claims deduction from the rent for about $400-$500 per month for a $5m "residential insurance" liability policy.
Worth challenging informally or by motion? Any commen ts are appreciated.
Michael Chekian, Esq.
Certified Bankruptcy Law Specialist
California State Bar
Chekian Law Office
11400 W. Olympic Blvd. #200
Los Angeles, CA 90064
(310) 390-5529 Telephone
(310) 451-0739 Facsimile
e-mail: mike@cheklaw.com
Since the interest paid on deposit accounts is so small, trustees are not moving estate funds into money market or CD accounts
Sent from my iPhone
On Nov 5, 2014, at 8:19 PM, "mike@cheklaw.com [cdcbaa]" <cdcbaa@yahoogroups.com> wrote:
Listmates,
Any comments on whether the following actions of the Chapter 7 Trustee should be challenged by creditor/interested party?
1. Trustee holds about $500,000 cash which will not be distributed to creditors for at least 6-12 months until litigation is resolved. Despite interested party's request, Trustee refuses to put cash in interest bearing account for unspecified reasons
and instead puts it in a non interest account. Code Section 345(a) suggests that the Trustee safely deposit money to yield the maximum net return; and
2. Trustee collects monthly rent from a third party tenant (around $1000 to $1500/mo.) on a modest residential property, but claims deduction from the rent for about $400-$500 per month for a $5m "residential insurance" liability
policy.
Worth challenging informally or by motion? Any commen ts are appreciated.
Michael Chekian, Esq.
Certified Bankruptcy Law Specialist
California State Bar
Chekian Law Office
11400 W. Olympic Blvd. #200
Los Angeles, CA 90064
(310) 390-5529 Telephone
(310) 451-0739 Facsimile
e-mail:
mike@cheklaw.com
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