What are my options - screwed over by the trustee

[chewy96]

Okay I am a little ticked off.

In August my Chapter 13 case was dismissed because of a miscommunication from my lawyer. She filed a motion to reinstate and advised me to send in my plan payment of $750, so I did.

The motion to reinstate my case was denied - and I was told that I could expect that money back, which I was going to use to file a new case - this time a chapter 7, and I was pretty glad.

Guess what? The trustee's office said they "made a mistake" and paid out that 750 for my creditors. (BTW - they say they are really sorry) The paralegal at the law firm said that if I had any issues with that to call the trustee directly.

Is there anything I can do? I'm not gonna see that money again am I?

[lrprn]

The trustee's office said they "made a mistake" and paid out that 750 for my creditors. (BTW - they say they are really sorry) The paralegal at the law firm said that if I had any issues with that to call the trustee directly.

If our case is any indication, your trustee should be able to get that money back because your case was dismissed BEFORE the disbursement happened.

About four months after we filed, our trustee disbursed funds to one of our creditors' lawyers that filed an objection to cover the legal fees he claimed in our case. . When the objection was thrown out by the bk judge, he had to go get that money back for our other creditors. He sent out an official letter to the creditor's lawyer asking for the money back and the lawyer had to send it back to him.

Contact the trustee and ask him/her to get the mistakenly disbursed money back. Your case was dismissed - his office made a bad mistake - there should have been no disbursement until the court settled whether your case could be continued or not.

Unfortunately it's likely to take a few months to get the money back though....won't be a quick fix