Clerical Error by a Trustee (In My Favor): What To Do?

[hiho23]

Hey Everyone:

My trustee recently posted a report of no distribution. Strange thing is that my paperwork clearly indicates that assets are available for distribution. On the front page of the BK package, under "Statistical/Administrative Information", I selected "Debtor estimates that funds will be available for distribution to unsecured creditors". And on Schedule C, I only claimed a small proportion of my declared cash equivalents as exempt. So what should I do? I feel kind of like I do when I go to the grocery store and spot a $30 bottle of wine that has been erroneously marked $8.99 by a careless stock person. Of course I usually purchase that bottle of wine, but I also usually end up feeling guilty. Once a BK is discharged, can the discharge be revoked or modified if clerical errors (on the part of the court) are discovered?

Thanks!

[justbroke]

Sometimes, if the amount is small, it's not worth the Trustee's trouble. (For example, it could cost the Trustee more money to administer the little money there is... than to just leave it alone.)

[hiho23]

The amount that I reported as non-exempt/available for distribution was on the order of $10,000.

[justbroke]

The amount that I reported as non-exempt/available for distribution was on the order of $10,000.

Now that is juicy! Did you file pro se? Why would you have so much still non-exempt? Strange indeed with them not noticing or catching that.

[hiho23]

Yes, I filed pro se. (I've never run across a lawyer who had anything at all to offer that I couldn't do myself more effectively and much more cheaply.) I had so much non-exempt because I filed when I first determined that I was technically bankrupt. Spending down my remaining distributable assets didn't really seem morally defensible...

[JoeBankrupt33]

The way I see it, you did what was right by reporting the amount. If the trustee doesn't take it, it's not your fault. I'd just wait for discharge and case closed before spending any.

[AngelinaCatHub]

The way I see it, you did what was right by reporting the amount. If the trustee doesn't take it, it's not your fault. I'd just wait for discharge and case closed before spending any.

I second this. You did nothing wrong. Sometimes pointing out a person's error will do more harm than good. The Trustee may be insulted and then look you over with more scrutiny. I would let it be. Yes they can reopen a discharge but it is not likely unless a creditor examines your paper work. They won't as the Courts are getting flooded and pushing bk's through in record time. 'Hub

[music12]

hello, hiho, just saw this post.

could it be that the $10,000 was so small relative to the total amount you are discharging that it didn't seem like much to the trustee? maybe it's something related to the fact that in ch13, if the total you can pay is not over 25% of the debts, you stay in ch7 (i think).

oh, meanwhile, did anybody object to the no distribution?

[OhioFiler]

I feel kind of like I do when I go to the grocery store and spot a $30 bottle of wine that has been erroneously marked $8.99 by a careless stock person.

I find it a bit presumptuous to assume the stockperson was careless. Maybe it was determined that the wine had such a limited following it was necessary to discount it. Perhaps another customer switched the price tag and then decided not to try to buy the bottle. Perhaps the stockperson was ready to quit and decided to mis-price bottles to get back at his supervisor. Lots of reasons come to mind for me long before I assume carelessness.

[music12]

I find it a bit presumptuous to assume the stockperson was careless. Maybe it was determined that the wine had such a limited following it was necessary to discount it. Perhaps another customer switched the price tag and then decided not to try to buy the bottle. Perhaps the stockperson was ready to quit and decided to mis-price bottles to get back at his supervisor. Lots of reasons come to mind for me long before I assume carelessness.

OhioFiler, if i was ever accused of any crime, i'd ask for you to be on my jury! and you are right, assuming carelessness is presumptuous, but apparently gets done all the time.

[OhioFiler]

OhioFiler, if i was ever accused of any crime, i'd ask for you to be on my jury! and you are right, assuming carelessness is presumptuous, but apparently gets done all the time.

It's most often done as a subconscious condescension. Many times we make assumptions about people based on one's career choice. As one able to identify a mis-priced $30 bottle of wine I am clearly not careless as most stockpersons are.

I also declare "Not Guilty!"