Chapter 7

Chapter 7 Trustee's claims against debtors partners

Deficiency of Partnership Property: Where the estate of a Chapter 7 partnership debtor lacks sufficient property to fully satisfy all claims against the partnership, the bankruptcy trustee is entitled to a claim for the entire deficiency against each general partner who is personally liable: Bankruptcy code §723(a).

Non-debtor General Partners

Non-debtor general partners: In attempting to recover the deficiency, the trustee, where practicable, must first pursue any general partner who is not a debtor in a bankruptcy case. Under these circumstances, the bankruptcy court may require the partner to supply indemnity or other assurance of payment, or may enjoin the partner from disposing of property, until the amount of the deficiency is determined. Bankruptcy Code §723(b).

General Partners who are Debtors

General partners who are debtors: The trustee's claim against the estate of each general partner who is it debtor in a bankruptcy case equals the total of all allowed creditors claims in the partnership's bankruptcy case. The trustee receives distribution on property with the general partner's individual unsecured creditor.

Disallowance of claims of Partnership Creditors

A creditor's claim for which both the partnership debtor and a general partner are responsible will be disallowed in the bankruptcy case of the general partner, except to the extent that the claim is secured solely by the general partner's property and not by the partnership's assets.

Excess Recovery by Trustee

If the trustee in the partnership's bankruptcy case recovers from the debtor general partners an amount that exceeds a deficiency remaining after payment by the non-debtor general partners, the surplus will be returned to the bankruptcy debtor's general partners' estates in an equitable manner. Bankruptcy code §723(d).

California Bankruptcy Lawyer in San Diego

  • If you are facing foreclosures, repossessions, wage garnishments, liens, and constant calls and letters from creditors and collection agencies, we are ready to assist you. The Pacific Bankruptcy Center is a debt relief agency, aiding clients in filing for bankruptcy relief under the Bankruptcy Code. Contact a bankruptcy lawyer at our firm today to learn more through an honest assessment of your situation.

  • With over fifteen years of experience we have recovered cars and trucks from public sale auctions and had them returned to our clients.

  • Stopped foreclosure and returned the possession of real property to our clients.

  • Lifted restraining orders on frozen bank accounts.

  • Reduced or wiped out unsecured credit card and medical debt.

  • Stopped landlord evictions in San Diego and San Diego county.

  • Negotiated with creditors lawyers over valuation of property.

  • Filed valuation motions.

  • Filed motions to avoid liens on real and personal property.

  • Forced the San Diego County Sheriff to return vehicles out of levy and impound.

  • Recovered money damages for clients against creditors who violate the automatic stay.

  • Filed motions to reinstate a previously lifted stay.

  • Filed motions to redeem personal property.

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    Riverside County is a county located in the southeastern part of the US, State of California. The population of Riverside County was 1,545,387 in 2000 and the 2006 population has been estimated at 2,026,283. The county seat is the city of Riverside.

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    The bankruptcy attorneys of the Pacific Bankruptcy Center, serve clients in Southern California, including San Diego County, San Bernardino County, and Riverside County; and the cities of San Diego, Riverside, San Bernardino, Chula Vista, National City, El Cajon, La Mesa, Mission Bay, Hillcrest, Ramona, Julian, Escondido, San Marcos, Vista, Oceanside, Encinitas, Solana Beach, Del Mar, Rancho Bernardo, Rancho Santa Fe, La Jolla, Pacific Beach, Ocean Beach, Little Italy, Old Town, Mira Mesa, North Park, Temecula, and Carlsbad.

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