Expert: Mark J. Markus- California Bankruptcy Attorney - 4/7/2009

Question
I am facing a case in which the Chapter 13 debtor claims he owns assets that were awarded to me in a State court case.
While I have no claims against the Debtor personally, as a matter of prudence, execution is on "hold."
I am trying to get relief from the stay in order to levy on the assets.  A hearing has been set, but it's a month away.
Time is running, and the assets are wasting.
The Ch 13 trustee has moved to have the BK dismissed -- or converted to a Ch 7, since the (incomplete) plan will not work, especially without the wrongfully claimed assets.
I have also asked for sanctions, since the whole premise of the BK is in bad faith and fraudulent in the claim of assets that have been determined by a court of competent jurisdiction to NOT belong the the Debtor.
Do you have some suggestions for me to get off the CH 13 merry-go-round and effect execution on the assets that have been awarded to me?
Thanks for your time and response.


Answer
It sounds like you're taking all the appropriate steps at this time.  I'm not clear on the ownership of the assets issue, and I suspect that would require an extensive review of court documents, which is beyond the scope of this forum.  I'm not sure how you cannot have a claim against the debtor if you were awarded assets to which he/she thinks belong to him/her.  But in any event, dismissal of the case would enable you to continue collection efforts to get those assets (whatever they are).  Conversion to Chapter 7 might make it a bit more difficult, but if you have a legitimate title to those assets and not merely a security interest, and that title was not received within 90 days prior to the filing of the bankruptcy case, then the Trustee would likely just turn over those assets to you.