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  1. #1
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    Sep 2013
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    Default Suing a Bankruptcy Trustee

    Can I sue the trustee if they stepped in & took control of a business when they had no right to? A business partner filed a chapter 7 & their trustee has been taking actions as a trustee for the business not the individual.

  2. #2
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    Default Re: Suing a Bankruptcy Trustee

    That will depend on the facts, including the bankrupt partner's stake and role in the business, any orders issued by the bankruptcy court relating to the business, the reasons for the trustee's actions, the actions the trustee is taking, etc. I can understand why you would not want to post the details in a public forum, but your alternative is to speak with a bankruptcy lawyer in your state, one who is familiar with business issues in bankruptcy.

  3. #3
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    Mar 2013
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    Default Re: Suing a Bankruptcy Trustee

    Quote Quoting maxx power
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    Can I sue the trustee if they stepped in & took control of a business when they had no right to? A business partner filed a chapter 7 & their trustee has been taking actions as a trustee for the business not the individual.
    Can you?

    Sure.

    But your chances of winning are slim to none.

    For one thing, the court and the trustee are generally immune to lawsuits arising out of the performance of their duties.

    If you want to try to overcome that, I'm guessing you'll spend $25,000 to $50,000 on litigation, still with little chance of success.

  4. #4
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    Default Re: Suing a Bankruptcy Trustee

    It all depends on the facts, and we have essentially none of the relevant facts.

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