Does the trustee have the standing to sue my girlfriend for MORE than the total amount claimed by all the creditors?

Asked over 1 year ago - San Francisco, CA

I am in Ch. 7 BK and my girlfriend is being sued as a transferee by the estate's trustee for a series of fraudulent transfers that the trustee intends to recover for the estate. The total amount of all the creditor claims against the my estate total approximately $20k but yet the trustee is suing my girlfriend for more than $50k going back as long as 4 years.

Attorney answers (3)

  1. 5

    Lawyers agree

    Answered . I take it you are the Chapter 7 debtor and you are the one who made the transfers to your girlfriend over the past 4 years. As the recipient of the property, she can be named in such a lawsuit and the trustee has standing to seek relief on behalf of your creditors. I am surprised that you were not named as a co-defendant. The lawsuit will set forth the trustee's allegations as to the value of the property allegedly, fraudulently transferred. You both need experienced legal counsel ASAP in order to prevent a default judgment against you.

  2. 5

    Lawyers agree

    Answered . Sure. A Trustee is going to file a case and ask for everything he/she can. Did you include the Trustee fees and expenses, and accounting fees, etc., in claims against the estate? Taxes owned by the estate? Did you include only claims you listed or files actually filed by the bar date (if there is one)? The Trustee can always settle for less, and if the Trustee has money left over you probably get it. Obviously, your girlfriend needs her own lawyer. Presumably, you reviewed all these questionable transactions with your Bankruptcy lawyer before you filed the case and were aware this was a possibility.

  3. 2

    Lawyers agree

    Answered . Did you file this banrkuptcy without an attorney? That was you first mistake. I strongly suggest you retain a BK attorney. Good luck.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662.... more

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