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Trustee's Valuation of Residence
David is right, the trustee is doing the trustee's job.
In order to pass the test to approve a settlement, the trustee has to
represent the settlement is 75% of the proposed gain, only lower if
there are questions of ability to win litigation. Make a low offer
and ask trustee's counsel what the trustee's broker really thinks the
property will bring, net, net, net, to the estate.
dennis
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Dear khiemtiva:
Thanks for consulting CDCBAA.
The Trustee pretty much has an absolute right to market the property.
You cannot stop them, even if you believe that the property is worth
much less than the Trustee believes. Remember that the Trustee's job is
to maximize value for creditors and the Courts want them to do their
job. If you think the Trustee is way out of line (and that does not
appear to be the case from the facts as you have described them), you
can file a motion to compel abandonment. Be prepared to put on a full
evidentiary showing of value, including the use of expert witnesses.
Also, your client has an affirmative duty to cooperate, i.e. not
interfere with the Trustee's marketing efforts.
You may want to see if your client has an administrative claim for
unjust enrichment against the estate if, for example, the client has
made improvements to the property or paid an obligation of the estate,
such as the property taxes since the case was filed. You might argue
that the payment of interest on the mortgage since the filing date is an
offset, but this is not clear.
Your client is faced with the decision of taking a chance on the market,
agreeing to the Trustee's proposal or negotiating with the Trustee for a
different, hopefully middle ground, price. Remember that the Trustee
wants to liquidate the asset as quickly and painlessly as possible for
all concerned. The Trustee has no desire to throw your client on the
street, s/he is just doing his/her job.
Make sure that you have the correct homestead amount
Good luck, and please feel free to join the CDCBAA if you have not
already done so.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem
500 N. Brand Blvd., #460, Glendale, CA 91203
Tel: 818-507-6000 Fax: 818-507-6800
* Personal & small business bankruptcy specialist cert. by State Bar of
CA Bd of Legal Specialization.
charset="windows-1251"
Message
Dear khiemtiva:
Thanks for consulting CDCBAA.
The Trustee pretty much has an absolute
right to market the property. You
cannot stop them, even if you believe that the property is worth much less than
the Trustee believes. Remember that the Trustee's job is to maximize value
for creditors and the Courts want them to do their job. If you think the
Trustee is way out of line (and that does not appear to be the case from the
facts as you have described them), you can file a motion to compel
abandonment. Be prepared to put on a full evidentiary showing of value,
including the use of expert witnesses. Also, your client has an
affirmative duty to cooperate, i.e. not interfere with the Trustee's marketing
efforts.
You may want to
see if your client has an administrative claim for unjust enrichment against the
estate if, for example, the client has made improvements to the property or paid
an obligation of the estate, such as the property taxes since the case wasfiled. You might argue that the payment of interest on the mortgage
since the filing date is an offset, but this is not
clear.
Your client is faced with the decision of
taking a chance on the market, agreeing to the Trustee's proposal or negotiating
with the Trustee for a different, hopefully middle ground, price. Remember
that the Trustee wants to liquidate the asset as quickly and painlessly aspossible for all concerned. The Trustee has no desire to throw your client
on the street, s/he is just doing his/her job.
Make sure that
you have the correct homestead amount
Good luck, and
please feel free to join the CDCBAA if you have not already done
so.
David A. Tilem
Certified Bankruptcy
Specialist*
Law Offices of David A.
Tilem
500 N. Brand Blvd., #460, Glendale, CA
91203
Tel: 818-507-6000 Fax: 818-507-6800
* Personal & small business
bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Business bankruptcy specialist cert. by Amer. Bd. of
Certification
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