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Chapter 7 BK discharged then rescinded by trustee

Posted: Thu Dec 17, 2009 10:55 am
by Yahoo Bot

Listmates,
Facts: Client files a Chapter 7 BK 6/09, which is a no assets case. The Chapter 7 BK is discharged 10/1/09. Debtor father dies 12/5/09 and debtor may inherit significant funds. Trustee tells debtor that the discharge has been rescinded due to a clerical error. The trustee sues to get the debtor's inheritance to pay creditors. However, the inheritance she MAY get is currently in litigation in another state to determine if she has any interest; family is fighting her right to the inheritance.
1. If her potential inheritance ($400,000) is STILL in litigation in another state, can the trustee now go after these funds?
2. What is the effect of a Chapter 7, no asset case being discharged and then the discharge is rescinded by trustee due to a clerical error? Is this valid? It appears that the trustee found out about the inheritance.
3. What is the inheritance rule code section? Does trustee have 6 months from the date of filing the Chapter 7 BK to go after the inheritance?
4. What are the debtor's rights?
Thanks!
Lindsey Green, Esq.
Gumm & Green
Listmates,

Facts: Client files a Chapter 7 BK
6/09, which is a no assets case. The Chapter 7 BK is discharged
10/1/09. Debtor father dies 12/5/09 and debtor may inheritsignificant funds. Trustee tells debtor that the discharge has
been rescinded due to a clerical error. The trustee sues toget the debtor's inheritance to pay creditors. However, the
inheritance she MAY get is currently in litigation in another state todetermine if she has any interest; family is fighting her right to the
inheritance.

1. If her potential inheritance
($400,000) is STILL in litigation in another state, can the trustee now go
after these funds?

2. What is the effect of a
Chapter 7, no asset case being discharged and then the discharge is rescinded by
trustee due to a clerical error? Is this valid? It appears that the
trustee found out about the inheritance.

3. What is the inheritance rule
code section? Does trustee have 6 months from the date of filing theChapter 7 BK to go after the inheritance?

4. What are the debtor'srights?

Thanks!

Lindsey Green, Esq.
Gumm & Green



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