Judicial Estoppel
Posted: Fri Feb 12, 2016 11:02 am
Pay enough into the estate to cover estate's administrative expenses and the secured creditor or covert to Chapter 13
Sent from my iPhone - please excuse typos.
Thank you.
> On Feb 12, 2016, at 10:46 AM, nclark@blclaw.com [cdcbaa] wrote:
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> Fact Pattern:
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> Debtor files chapter 7. Claims homestead exemption of $175,000 because she is 91 years old. Lists the mortgage on the home of $68,000. Prior to filing she obtained an appraisal of the property on 6/29/15 and the appraiser valued the property at $200,000. Next day she files her case. She files several Section 522(f) motions and removes several liens. Creditor X files opposition valuing the property at $380,000 and stating that its claim of $40,000 is secured. Chapter 7 Trustee decides he is going to liquidate the property and files asset report. Only two POC are filed. Creditor X files secured poc for $40,000, and IRS files claim for $15,000 for unassessed taxes. Debtor fills out appropriate documents to show she does not owe the taxes. IRS withdraws its claim. Debtor withdraws Section 522(f) Motion, and calls the Chapter 7 trustee to explain that there is not unsecured creditors. Trustee states that they have made a deal with Creditor X. Creditor X has agreed to amend its claim as unsecured. Debtor tell Trustee that if that is done, she is going to object to the claim on the basis of Judicial Estoppel. Creditor X who has filed an Opposition to the 522(f) Motion and a secured claim, now is conspiring with the Trustee to sell Debtor's property for the sole purpose of immediately pay Creditor X and to generate fees for the Chapter 7 Trustee.
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> Thoughts?
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The post was migrated from Yahoo.