need advice & help- canadian filig for ch7

[wing081]

so im dealing with a lawsuit and those blood sucking lawyers just wont leave me alone after 2 years. So my lawyer and i decided we would file ch7 just to put this at a full stop.

I am canadian and all my assets and most of my debts are in canada. the debts i have in usa are previous attorney fees, an order to pay opposing lawyer fees, and a blank amount for the lawsuit.

i messed up on the 341 meeting because the form i submitted didn't have my canadian assets and debts. we put it as a supplemental form. the trustee gave another 10 days. so now the new updated form has everything including my canadian assets and debts.

My questions are:
-i guess they will try to come after my canadian assets, but can they? am i protected by canadian law? what happens to my canadian debts as theres a lot.will my canadian debt to vanquished too?i mean if they are taking my canadian assets then they should use that to pay my canadian debts too
-my mom purchased an apartment over 10 years ago. about 4 years ago transfferred to my name for tax purposes. i sold it last year and gave the $$ all back to her. will this be a problem? will they try to clawback the money?
-i transferred 2 vechicles to my mom last year in april. she then sold it a month ago.will this be a problem?
-those 2 vechicles above were in major accidents and they were appraised at much lower values. what can happen?

and any tips and advice for me? in the form it may seem sketchy. i have a lot of credit card debt and ive ben paying a decent amount to them. like 5k+ a month. i was under the impression that my canadian side wouldnt affect the usa side so in canada i just did things i normaly did. pay with my credit card (thought i spent more than i shouldve), and then pay money to lower the balance

[despritfreya]

Welcome to the Forum. You have quite a predicament. I will try to address each of your questions.


1. Will the Chapter 7 Trustee try to come after my Canadian assets - can they?

Yes. The bk estate encompasses ALL assets regardless of where they are located.

2. Am I protected by Canadian law?

Not in the US.

3. What happens to my Canadian debt?

A US bk protects you from collections in the US (no comment on cross-boarder insolvency proceedings under Chapter 15 of the Bankruptcy Code). You list ALL debts regardless of where they were incurred. If you plan to move back to Canada, you may want to consider a Canadian insolvency proceeding.

4. Will my Canadian debt to vanquished too? I mean if they are taking my Canadian assets then they should use that to pay my Canadian debts too?

Again, all debts are listed, all assets are listed and, listed creditors will be give the opportunity to file a claim. Those who file a claim will share in the distribution made by the Trustee. Creditors that are properly listed will be subject to the Discharge as it applies in the US (unless a non-dischargeability judgment is entered). Those not properly listed will not be subject to the Discharge and can attempt to collect in the US as the law allows.

5. My mom purchased an apartment over 10 years ago. about 4 years ago transferred to my name for tax purposes. I sold it last year and gave the $$ all back to her. Will this be a problem? Will they try to claw back the money?

Yes. The sale of property and the disposition of the proceeds must be disclosed in the Statement of Financial Affairs. Your mom will need to defend her rights if the Trustee comes calling. And, her being in Canada does not mean he won't come calling.

6. I transferred 2 vehicles to my mom last year in April. She then sold it a month ago. Will this be a problem?

Yes. Same answer as above.

7. Those 2 vehicles above were in major accidents and they were appraised at much lower values. what can happen?

Trustee can go after mom for the proceeds of what she got when she sold your assets (or more if he thinks she undersold them). Also, if you still have a claim relating to that accident, you better make sure it is disclosed on Schedule A/B.

Bottom line - you need to sit down with your attorney and figure out how you are going to get through this. From your post, it appears you either did not tell the attny what was going on or, if you did, your attny does not have much experience in more convoluted cases.

Des.

[despritfreya]

wing081

You have not posted since your first post but I wanted to follow up on my comments. I find the issue of cross-boarder insolvency interesting so I wanted to give you some 9th Circuit case law on the issue. You indicated that you filed in the State of Washington. Washington is in the 9th Circuit.

Your attorney may already know this but, just in case. . . .

If you are still dealing with questions regarding the Trustee controlling assets that are located out of the US review the following cases:

In re Simon, 153 F.3d 991 (9th Cir. 1998)
In re Icenhower, 757 F3d. 1044 (9th Cir. 2014)
In re Mastro, 585 B.R. 587 (9th Cir. BAP 2018)

Here is one more but from a Bankruptcy Court in Georgia:

In re Rajapakse, 346 B.R. 233 (Bankr. N.D. Ga 2005)

The above is by no means a complete list. Nor did I check to see if the BAP or Georgia decisions were appealed.

If you are still having issues with property located outside of the US the above cases will give you an idea of what you may be facing. Again, always discuss things with your attorney.

Des.