heartglass

Turned my BK over to a lawyer now I'm really in the crapper

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Back in may 2014 every one said get a lawyer after I had filed pro se , took a while found one she sounded like she knew her stuff when I interviewed her over the phone . We figured out I should file amended financials to stop the trustee from trying to sell my busness bulding . I got 2 more CMA's from reputable realtors which came in at 71,000 to 75,000 .I owed 79,000 at the time of my filing in Dec 2012 . Trustee did not respond to my amendments. Now 3 monthes later she has filed a request for her to hire a lawyer at 450.00 per hour to

" assist in the estates administration ." for discreet matters "

She claims the estimated low cost for this lawyer is 4500 . It says " as of this date of this application lawyer has performed a comprehensive conflicts check with respect to debtor, which revealed no conflicts . Lawyer will search and addition potential conflicts as and when they arise . Lawyer has not performed a full conflicts search of the credito matrix given its limited role as specaial counsel"

this is the verbage from the filing can some one explain ....it makes no sense to me ....

 

 

I'd like to know who the heck pays for this . She has a delusion that I have tons of money ....I am a struggling artist I run a bead store and make 800 per month ....

I  am being bled ...my attorney charged me 950. to file amendments now this when does this end ?

please I need help not a beating ...

 

 

 

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I’m not sure what the gripe with your attny is.  You have a business, maybe you have other assets that the Trustee must look at.  Trustees hire attnys all the time in such cases.  Not a big deal.  You do not pay for that attny.  That attny gets paid from the liquidation of assets or from the proceeds you kick in to settle issues with the Trustee. 

 

Sounds like your first mistake was filing pro se and  your second was filing a Chapter 7.  Chances are, had you hire an attny from the beginning you would not have filed a Chapter 7.   If you have not already done so, ask your attny if it is too late with too much water under the bridge to convert.  If it is too late (probably is) you are stuck in the 7 and will have to deal with the Trustee’s investigation, but you will not be getting a bill from the Trustee’s attny.

 

Edt to add:  If, as you say, the building is underwater and cannot be sold, then eventually the Trustee will figure it out.   If, in the end, there is nothing to administer she will close the case as a "no asset" case.   However, please note that the Trustee controls the building (and all other assets).  The Trustee is free to attempt a short sale with a kick-back to the bankruptcy estate.  She just has to get the lender to agree.

 

Des.

Edited by despritfreya
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This sounds like something your attorney needs to contact the trustee about to find out what is going on. My guess would be that this attorney would be paid if there are any assets in the estate. The trustee must still think that this building is worth more than you said and they are hiring the attorney to verify the true value. I have no clue how this attorney would be paid if it turns out there are no assets in the estate since I doubt you could be held responsible for the estate expenses unless it is determined that you committed fraud.

Honestly, if you are only making $800/month from this business and it is your only income, then you have more issues than this bankruptcy and it might be the kick in the read end you need to shut this down and get something that pays better. This is not to be mean but an honest assessment of the situation. You are still starving, even if the BK goes through and you keep the building.

In any case, you made a mistake with this Pro Se. It will unfortunately cost you to fix. Usually attorneys charge more to fix mistakes than they would to do everything from scratch because it costs more to fix a mistake. Again, not to be mean, just stating the facts.

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My building is all I have the lender has agreed to keep my mortgage , I am up to date with payments . and my building is co owned by my ex ....If  I lose my building I will not be able to make a living .

Unfortunately, the fact that the lender has no issue with your payments has no impact on your Trustee. The minute you filed Chapter 7 the Trustee stepped into your shoes and became the 1/2 titled owner of the building.

 

A Trustee has the right to sell, not only the bk estate's interest, but also a co-owner's interest in the asset pursuant to 11 USC 363(h). If there is no equity, the sale would be a "short sale" and only done with lender approval. Since it would be a short sale, the "kick-back" the lender would give, most likely, will belong to the bk estate.

 

You really need to sit down with your attny and go over all of the possibilities now that you have no control over the building.  I am not saying you are totally screwed.  What I am saying is that you need to understand what the ramifications are when filing Chapter 7, something you clearly do not know.  Make the call to your attny and get a better handle on your situation.  In the end, this may be “much ado about nothing”.

 

Des.

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