Can the trustee implicate family?

[bulbasaurus]

Can the trustee implicate friends or family by requesting their records (bank statements, etc.)?
What if they don't comply?

[justbroke]

Can the trustee request records from other people? If it's related to your case, and very specifically related to the recovery of property of the bankruptcy estate, the Trustee can make certain demands. If the demands aren't met, then the Trustee can sue family and anyone else related to the case. Again, this is usually because some property was transferred to another person or creditor and the Trustee is trying to claim it as part of the bankruptcy estate.

Does this happen often? Not that often. In some Chapter 7 cases (a liquidation case) about 5% are asset cases where the Trustee is looking to liquidate or recover property. Even in those few cases, even fewer ever reach a point where the Trustee is suing a non-debtor to recover property. I would say that even fewer than that ever result in third-party "records" being subpoenaed by the Trustee. Of course a person who then doesn't heed a court order could be found in contempt and/or sanctioned (fined).

I have never heard of this scenario happening, personally, so this would be one of those obscure outcomes. If by "implicate' you mean that there are criminal aspects of the case, then the Chapter 7 (Panel) Trustee can always refer to the United States Trustee (UST). The UST can refer to the U.S. Attorney's office for investigations of criminal conduct.

Welcome to BKForum.

[flashoflight]

I was requested by the chapter 7 trustee of a family member to turn over MY bank statements and MY paystubs in connection with an insider real estate transfer that took place around three years prior to the bankruptcy. If I didn't, the trustee would assume it was a fraudulent transfer and take the house. Needless to say, I turned over the requested documents and that was the end of it.

[bkandhappy]

YES, the trustee has lots of power, dont piss of the Trustee, or the UST or your life can become hell.