In Chapter 7 bankruptcy cases, the debtors attorney gets paid in advance. If you have more debt than assets, that works out fine for the debtor. The problem arises when an inadvertent creditor, with the ability to pay his debt comes into a Chapter 7 by mistake, thinking he can pay his obligations, and continue with his business. Or, if he has been in any other Chapter and is then forced into a Chapter 7.
In these cases, an agressive Chapter 7 Trustee can convert the Debtors estate into fees to the Trustees benefit. Since the Chapter 7 Trustee takes control of all the Debtors assets, the Debtor is left with no money to pay for an attorney to defend the Debtor's estate against an uncrupulos Trustee. Even if the Debtor hires an attorney to defend his estate he will find that he only further enriches the Trustee, as the Trustee will bill his estate to defend his actions.
Bankruptcy court has almost unlimited power over assets and debt, and presents a large incentive for corruption. Attorneys and Judges can develop alliances that are self-serving, where some Debtors can be taken advantage of, while those connected to these alliances are favored and come out eliminating their debt.
The Chapter 7 Trustee has few limits on the fees he may charge, and has incentives to develop particular talents for presenting large administrative fees. These conditions can make for activities that can become very compromising, self serving, and the opposite of the stated goal of Debtor protection.
Unfortunately I am assigned, Neil Gordon a Chapter 7 Trustee renowned for converting an estate into fees for himself.
Because my Creditor filed a foreclosure without providing the 30 days to cure, which was required under our agreement, I was unable to find an attorney. I had a surplus case which meant that the Trustee would work hard to keep the assets, and since I had no cash or substantial income to pay an attorney, no attorney would want to go against a Trustee. Since the Trustee is paid from the assets in the estate, and there are a lot of assets, the Trustee could financially exhaust any attorney that would go against him.
Without an attorney, I made the mistake of filing a Chapter 7 on my own..
In most cases a Chapter 7, can be converted to a Chapter 13 or 11, and the creditor will be permitted to pay his obligations, and continue with his business.
The Chapter 7 Trustee is required to take care of the estate he has been entrusted with, and the Trustee Program is charged with keeping these Trustee's honest. Nonetheless, so far in my case, I have not found the Justice Department willing to act against bad behavior. I have found that there is nothing that stops Trustees from doing anything they wish, including converting the entire estate to their benefit.
Without proper supervision some Trustees would see a case like mine as a gold mine for themselves, and their law firm. All it takes is the will, and a compliant Judge and you can make fortunes or destroy people in this court.
I had more than enough assets to sell and pay my obligations, but with no money to pay a substantial retainer, lawyers would not touch my case. On the other hand, companies that have cash, can file, and be exonerated of debt.
Obviously a court can favor you, or it can harm you. It can be all about relations, friends and favors, a condition of who you know, not what you know.
I will come to learn the importance of a fair Court system, and the power courts can have over individuals.
A Court system too politically influenced could explain why politicians would act with such unison. Trump placing judges to the Court based on loyalty, and not qualification, or Putin attacking adversaries via a Court system under his control, is how power is exercised. A political party in control of the courts can destroy adversaries or benefit party loyalists.
Since the Monarchy, courts can favor you, or will reduce you to nothing, and place you behind bars. It is certainly a potentiality, if not a common practice for a Court to be compromised.
In my particular situation, I only needed enough time to go to Chile, sell enough property, pay my mortgage, and continue my storage business. Certainly, anyone would think, a court advertised as “bankruptcy protection” would be just the place for me.
Unwittingly and erroneously, I concluded just that. From what I had read of “bankruptcy protection”, and what I naively believed about justice, this court would provide a solution for me to pay my obligations, and permit me to continue with my business.
On August 3, 2015, I filed a, pro se, petition for relief under Chapter 7 of the Bankruptcy code.
Like I said, “erroneously”, a mistake! What will happen is unexpected, because I expect, as the word implies, Justice should be “just”. What I will learn is that there are two definitions for this word, and the American definition is more of an ideal we work for, and not a reality.
What I will learn…
1. Politics is a closed gang, with the intent of profiting from the unaware.
2. Business is competitive, and if you control enough locals, you can run anyone out of town, take all they have, and they won’t even know what happened.
3. Justice can be easily controlled, because people are trusting, and they are governed by self interest.
4. Justice can be controlled from the local to the federal level.
5. Bankruptcy is a very powerful Court, it can make, or break people.
6. If there is corruption, this Court is where the most money can be made.
Think of this as the art of the deal.
Someone makes deals, creates millions in debt, then they show up at bankruptcy court. Their associates at the Court get rid of all obligations, and they are left with the assets!
Trump’s companies have filed for Chapter 11 bankruptcy protection, which means a company can remain in business while wiping away many of its debts. From the Washington Post.
Unfortunately at the onset of all this, I have no idea of the nature of Bankruptcy court.
On October 15 2015 I will meet with Trustee Neil Gordon, at the meeting of creditors for the chapter 7 bankruptcy. I explain to him that I am here to pay my obligations, that I have sufficient property in Chile and have buyers ready. I only need time to pay my mortgage obligations and continue with my business.
He assured me that he can do this, but explained to me that he is not my attorney. Although on the face of it, Neil Gordon's assurance sounded exactly what I had hoped, nonetheless I get an uneasy feeling from this meeting, and will continue to look for an attorney.
On the way home from Atlanta I stop by the offices of Clark and Washington, possibly Atlanta's largest bankruptcy attorneys. As all the other attorneys I have seen, they also tell me they can not handle this case, but do give me a list of attorneys who may help.