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Bankruptcy Law/lump sum after chapter 7 discharge

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Expert: - 7/1/2008


Question
Shortly after my discharge (Northern NY)I received 40,000 as beneficiary of my husband's life insurance. I had to hand it over to the trustee. It has been over a year and I would like to know how long it will take to get the remainder of my 40,000, I only owed 10,000. My lawyer said 2 months, then said a little longer. It has been over a year and I only had one debt.


Answer
There is no set time period for the Trustee to administer the estate.  And, even if you only owed $10,000 to your creditors, there will be fees for the Trustee, administrative fees, etc.  You may get some money back, but I've seen funds like that get eaten up by the fees and expenses.

In any event, why not just give a call to the Trustee's office and ask what the status is?   Sometimes they forget about these cases and let them sit.  If all else fails, your attorney can file some sort of motion with the court to compel the Trustee to speed things up.

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

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Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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