Why is Trustee in Chapter 7 bankruptcy taking most of my personal injury settlement?
~~~~OkayHope there’s a lawyer here or a paralegal.I file Chapter 7 bankruptcy. I have a personal injury case. I tell the Trustee. Not hiding anything. Debts are discharged but case is not closed. ok. I’m offered 35,000.00. Trustee tells me now my assets belong to the court. Okay. So trustee has to get his share. My p.i. lawyer has to get his share. and the law says some of the money should go to pay off a percentage of my debts. All of this is fine.Except.I now learn that my personal injury lawyer is also the “special counsel” and that he will be “double dipping.”~~in other words, getting paid twice to handle distribution of my settlement.hummmso, if the law says I should pay my debts, or at least a part of them – which I don’t have a problem with….why is it is that my pi attorney is allowed to collect two fees? (l/3 of settlement, and then collect another percentage in full..and the trustee is allowed to collect her fee in full?I thought the laws were changed so that creditors could collect…not that almost half of settlement goes to attorneys and trustees.I’m told that trustee wants to take case to trial. Of course I know why.He wants a bigger share.My personal injury lawyer has also been assigned as “Special Counsel”. He will collect his 1/3 fee from settllement amount, PLUS he will collect a percentage of what is left since he has been assigned “Special Counsel”. Then to repeat what I said, the trustee will also receive a share.My bankruptcy lawyer has already been paid his $2800.00 fee for preparing my Chapter 7and going to my First Creditors Meeting. He gets nothing further. At least I hope not.
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