《楊清泉律師專欄》DISHONEST CHAPTER 7 DEBTOR CANNOT CONVERT TO CHAPTER 13(PART I)

The Chapter 7 trustee agreed to withdraw his discharge challenge after the debtor agreed to make payments that placed the bankruptcy estate in the same position it would have been in if the debtor transferred all of the proceeds due to him from the sale of his residence immediately after the petition date without the need for the trustee to litigate the issues. The UST however, opposed the settlement primarily on the basis that the debtor’s conduct during the chapter 7 proceeding should not be rewarded with a discharge in chapter 13. Because the UST would not agree to the settlement, debtor attempted to convert to chapter 13. However, the same reasons that cause the UST to press the discharge challenge also worked against debtor’s ability to convert his case. The court found that debtor acted with intent to misrepresent the amount of money he money he received. CONVERSION TO CHAPTER 13 DENIED.

Lawrence Bautista Yang is a graduate of Georgetown University Law Center and has been in law practice for thirty years. He specializes in bankruptcy, business and civil litigation and has handled more than four thousand successful bankruptcy cases in California. He speaks Mandarin and Fujien and looks forward to discussing your case with you personally. Please call (626) 284-1142 for an appointment at 1000 S Fremont Ave Bldg A-1 Suite 1125 Unit 58 Alhambra, CA 91803.