Settlement offer of outstanding bankruptcy issue

May 24th, 2008 by Questions

I filed for bankruptcy 3 and a half years ago and got discharged. I am married and owned a house. The trustee had the house appraised and the equity on the house was only $9,000 at the time (3 years ago.) One of the creditors whom I owed about $20,000 insisted that I should pay up the what we owed. I have been asking the trustee to settle this matter even if we needed to pay the creditor some of his debt but for some reason beyong my understanding the trustee and the creditor never agreed. The title of my house has been transferred to the trustee since then. My mortgage is coming up for renewal and I also owe 3 years of property taxes that needs to be paid soon. I have hired a well known solvency lawyer for the past 6 months who offered the trustee $9000 but the trustee has asked for a second meeting of creditors.

My question is that could they ask for more money since the value of the house might have gone up and there is less mortgage on the house since we have been paying it for the past 3 years. Could they ask for more than $20000, which is what we owe.

Please, please advise me since this is ruinnig my financial and personal life. Please help me…should I go to the superintendent of the bankruptcy or court. I am in a very rough financial situation and don`t know what to do.
Have spent so much on expenses and lawyers causing me to go in debt again to resolve this issue.

Thank You so much for all your help and taking the time to read this long message.

Posted from: Ontario

Questions

One Response to “Settlement offer of outstanding bankruptcy issue”


, Barton Goth - Goth & Company Inc. - Bankruptcy Trustees said:

At this point the proper place to direct these quesitons would be to your legal council and they would be more familiar with the specifics of your case. However, just for reference, the second creditor meeting is normal as the trustee must get the direction of the creditors prior to accepting this $9000 offer this may just be a formality to ensure that the creditors are on board.

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