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Can I sue a Chapter 13 Trustee for disbursing funds to unsecured
Chapter 13 Estate just received a 6 figure sum from a settlement of a
malpractice claim that I and another attorney prosecuted. Trustee was
supposed to pay the two attorneys first (33%), then split remainder between
estate and debtor.
The funds to go to the estate were prettymuch spoken for with attorney
admin fees: mine for work in the general BK case, and another attorney who
represented debtor in a state court case.
Also, Debtor's counsel - me - was supposed to be paid prior to previous
chapter 7 trustee and his counsel pursuant to the language of the confirmed
plan. This did not happen. CH 13 Trustee counsel now wants to argue with me
that the language in the confirmed plan doesn't matter because that's not
how they disburse funds. Hah!
The CH 7 Trustee and counsel were paid in full, and the unsecured creditors
were paid lump sums - the entire percent they were owed under the plan
(11%). I was paid my share of fees on the malpractice action, but NOT my
fees for the BK, and my co-counsel in the Malpractice action received ZERO,
and the other debtor's special counsel received ZERO.
We all have COURT ORDERS approving our fees. The trustee's claim
administrator totally screwed this up. This was a hotly contested case.
SANTA ANA. Trustee's counsel then tried to guilt me and say I've been paid
a lot in this case already so I shouldn't be complaining, then out of the
blue accused me of implying my debtor won't pay any more in this case.
WHAT? I don't even know where that came from. I said I am done dealing with
you and will deal with the trustee only from here on.
I am LIVID. We have all (including the debtor) waited over 2 years to be
paid.
What are my remedies/options here? I have advised counsel for one of the
largest unsecured creditors to have his client return the funds to the
trustee, and have advised the former chapter 7 trustee and counsel of the
issues here.
Holly Roark
Certified Bankruptcy Specialist*
*and Sports Lawyer*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
*Central District of California & District of Idaho* - Consumer Bankruptcy
Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
*By State Bar of California Board of Legal Specialization
Chapter 13 Estate just received a 6 figure sum from a settlement of a malpractice claim that I and another attorney prosecuted. Trustee was supposed to pay the two attorneys first (33%), then split remainder between estate and debtor.The funds to go to the estate were prettymuch spoken for with attorney admin fees: mine for work in the general BK case, and another attorney who represented debtor in a state court case.Also, Debtor's counsel - me - was supposed to be paid prior to previous chapter 7 trustee and his counsel pursuant to the language of the confirmed plan. This did not happen. CH 13 Trustee counsel now wants to argue with me that the language in the co
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