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WA Court Proceedings against Bankruptcy Trustee

Discussion in 'Debt and Bankruptcy Law Forum' started by Keziah, 30 March 2015.

  1. Keziah

    Keziah Well-Known Member

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  2. Ivy

    Ivy Well-Known Member

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    Hi there,

    There are a lot of variables including who is commencing proceedings against the trustee and the nature of the dispute. Can you provide more information please?
     
  3. Keziah

    Keziah Well-Known Member

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    Hello Ivy,

    Thankyou for your response. Trying my best to nutshell this for you as it is very involved, I went voluntarily bankrupt in May last year as a very bitter relative sided with another creditor (even though I had been paying her debt off) and issued court proceedings to send me bankrupt. 3.5 months went by with no problem and then the other creditor who we had an unresolved dispute with and who also owes us more then we owe him, paid $10,000 to a registered trustee to destroy our lives. Using the law as a guise, my husband and myself have been lied to, mistrusted, treated with contempt, insulted, and I went into depression over this. From the onset it was an obvious conflict of interest as the trustee ignored all proven lies from the creditor who paid him, and it is collusion between the creditors but we didn't know what a trustee could do. We have a 12 year old boy who constantly sees me crying. There really is much to this and we have been put through the ringer and it won't stop. A friend has paid so far $8,000 to an insolvency solicitor who only acted in defence with no resolve. The trustee ignored anything our solicitor stated and treated his correspondence with contempt.

    The trustee is insisting on acquiring a piece of embroidery I did many years ago which is of the greatest sentimental value to me, also as I had a go at trying to market this embroidery technique (with no success so far), it is also a tool of trade. It is an embroidered image of my son's eye. After initially trying to get help from AFSA, we didn't get far as we felt the Regulations person in my state was not helping at all and appeared to be siding with the trustee. The solicitor eventually suggested we formally complain to AFSA which we did, but it is now very apparent the AFSA Regulations person is siding with the trustee. We had 3 opinions from art valuers stating the value was very negligible but they are being ignored - even by the AFSA person.

    The personal creditors KNOW that losing this creative item will destroy us. It means too much to us.

    The trustee has stated if we don't hand it over we will go to prison for a one year. We need to do something but we feel we have nowhere to go. We need to go to court so someone who isn't the trustee's 'buddy' will hear us out. For weeks we read everything we could find on rules of conduct of a trustee and feel he has broken many of them.

    What is the best thing we can do now? Is it very costly to go to court and represent ourselves? Also we feel that this is not what bankruptcy is supposed to be about. We are both unemployed, me because of health reasons and my husband is 62 yrs old, and feel that this is not what bankruptcy is all about. This has consumed our lives over the last 6 months and is taking its toll.
     
  4. Ivy

    Ivy Well-Known Member

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    1. Who is the trustee?
    2. What is the debt that the trustee is claiming? What is it for and for how much?
    3. Why are they saying you will go to prison? Have criminal charges been laid against you?
    4. Why do you think they want your embroidery? Because they believe it to be valuable?
     
  5. Ivy

    Ivy Well-Known Member

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  6. Keziah

    Keziah Well-Known Member

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    Hello Ivy,

    Thankyou for your reply. 4 Creditors listed - 2 personal and 2 business. The 2 business debts are :

    Loan from private lending company $135,000;
    and the other from sold credit card debts totalling between us $80,000.
    Personal debt from relative $55,000;
    Personal debt from other known person $100,000

    Criminal charges have not been laid as we have not committed any criminal offence. We have been threatened with it over the embroidery (and other things). The embroidery cannot be valued (we have tried for 7 years with no success) but we have 3 opinions which are being dismissed because they all state that for many reasons they are of negligible value. Trustee is now insisting on us handing it over for 3 months while he gets it valued. We will NEVER get it back - no matter what happens. It doesn't take 3 months to get anything valued let alone a piece of needlework.

    The trustee mentioned on the first encounter that he used to be in the art business. We feel he will get a 'trumped-up' valuation done. He has used illegal tactics for other things.

    No, the embroidery is not valuable, and we are told it isn't sentimental . . . it can't be anything BUT sentimental.

    This is a personal vendetta from the personal creditors, one of which owes us more than what we owe him! However, this is being pushed aside by the trustee at this time - why would he chase a debt from a person who paid him $10,000?

    I was wondering if I shouldn't mention the trustee's name here ?? I can send it privately.
     
  7. Ivy

    Ivy Well-Known Member

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    Hi again,

    As I said above, some debts (in particular secured debts) can still be claimed after bankruptcy. Have a look at these pages from AFSA for more information.
    Bankruptcy and debt agreements - debt comparison table — Australian Financial Security Authority
    Bankruptcy and debt agreements - debt comparison table — Australian Financial Security Authority

    As for the tactics being used by the trustee, I'm not sure whether they can demand your embroidery as payment. I am also not sure what the limits are as to their behaviour. I personally would be seeking out further legal advice if at all possible.

    Maybe someone else on here can provide further suggestions- @John R and @Tim W , do either of you have further information to add?
     

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