Is it legal for me to give information about the debtor to the bankruptcy case trustee?

Asked over 1 year ago - Reno, NV

I am a creditor in a bankruptcy case. I believe that the debtor is hiding cash assets. If I have information about these cash assets garnered from a background check that I paid for, is it legal for me to give this information to the bankruptcy case trustee?

Attorney answers (5)

  1. William C. Devine II

    Contributor Level 13


    Lawyers agree


    Answered . As long as the background check was done legally, then yes. The Trustee represents the interests of creditors, not the debtor in bankruptcy. You're free to talk to the Trustee if he/she will talk to you.

    William Devine, II.
    Rainey Devine

    I am an attorney, just not your attorney (yet). Any answers here are to be deemed informational unless and until... more
  2. John T. Oblad

    Contributor Level 4


    Lawyer agrees

    Answered . Please make sure the information was obtained properly and legally. I was a staff attorney for a Trustee and from time to time we received information from time to time regarding assets. Depending on the timing we would bring it up in the 341 or seek a 2004. The creditors who usually turned over the information were usually ex-spouses after a divorce proceeding. We would also complete our due diligence to make sure this was not in spite and firmly based on facts.

  3. Nels C. Hansen

    Contributor Level 6


    Lawyers agree


    Answered . As long as the information was obtained legally and isn't privileged you can speak to the Trustee.

    Trustees routinely receive information about undisclosed or missing assets as a result of the "EX" factor.
    Ex-wives, Ex-husbands, Ex-business partners, Ex-employees, Ex-customers...

    Nels Hansen is a bankruptcy lawyer in Austin Texas and accepts clients in Austin, Georgetown and Pflugerville.... more
  4. Dorothy G Bunce


    Contributor Level 20

    Answered . Contact the office of both the panel trustee & the United States Trustee to report this information. Don't be surprised if they already know about this information because every bankruptcy case gets a courtesy review in the FBI database for assets missing from the bankruptcy petition. The debtor is given an opportunity to correct any mistakes at the 341 meeting, but after that, any lies that catch up to them will have serious consequences. Hope this perspective helps!

  5. Frank John Kokoszka

    Contributor Level 10


    Lawyer agrees


    Answered . As long as the information that you received is not privileged, then yes. It is not uncommon for creditors to give information to the trustee about potential assets.

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