Beware of Filing for Bankruptcy & Losing Minerals

Beware filing bankruptcy if u can avoid it...bankruptcy trustee can take your mineral right and sell them ! I was not aware of this before I filed now I have no choice...

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Permalink Reply by Billy Park Whyde on April 14, 2015 at 1:29pm

Most bankruptcy trustees are private attorneys that for all purposes  are out to get a percentage knowing you are in a poor position to afford an attorney to challenge them.

Permalink Reply by Chris Barrett on April 14, 2015 at 3:11pm
Yes ...And apparently since there is precidenc in Ohio now this will be happening more frequently. Hind sight being 20/20 I would have been better off to sell my rights on my own and get a better price . State law allows trustee to take 15% that is almost 3 months wages for me I hope he enjoys it.
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Permalink Reply by Finnbear on April 16, 2015 at 12:41am

I'll play devil's advocate here. Why should you be able to shield this valuable asset from your creditors? You owe them the money.

Permalink Reply by Billy Park Whyde on April 16, 2015 at 1:27am

I know of a bankruptcy that was done by a wife during a divorce. Both her and her husband had attorneys and came to a mutual property settlement agreement where the husband bought her out and the judge approved the agreement and quit claim deed was signed by the wife.  The wife then filed bankruptcy where the trustee attempted to call the agreement fraudulent!  The trustee attempted to over inflate the property's value so he could cash in.

 Kind of hard for a trustee to find the agreement fraudulent when the wife claimed she had not transferred any property before her filing bankruptcy. The husband did not file bankruptcy but had a fight on his hands. 

Permalink Reply by Chris Barrett on April 16, 2015 at 2:24am
Was this in ohio...did she file be fore the divorce was final...maybe because of the overlap ?
Permalink Reply by Billy Park Whyde on April 16, 2015 at 2:56am

According to the husband she  signed the property settlement agreement was given  the check for the buy out then the next day filed for bankruptcy. He was hot! After all you sign a bankruptcy under a Federal Perjury clause.  As he stated how can you sign a bankruptcy stating you didn't transfer any property when you did the day before?

  He fought it and kept the farm but it sure left a scar on his belief in the justice system!

Permalink Reply by Barb Smith on April 16, 2015 at 4:20am

Tell Donald Trump that, he is the expert at filing bankruptcy and protecting assets

Permalink Reply by Tim Tarr on April 16, 2015 at 7:56pm

LOL

But he knows how to run (ruin) a business.

Permalink Reply by Chris Barrett on April 16, 2015 at 2:15am
I realize that....my attorneys apparently didn't know this could happen...I should have been advised I could sell on my own and probably get a better price ...I went ahead and paid their fee and went forward which subjected me unknowingly to losing my mineral rights..I have no problem paying creditors just cant understand why he gets $5700 and I only have 5 acres its to me an outrageous amount
Then I could have saved the attorney fee and trustee fee and paid back my creditors and has more money left over if I had to lose my rights
Permalink Reply by Zack Jameson on April 16, 2015 at 2:26am

I'm adding this to the mix as a true example of how some attorneys operate. In my town, an attorney was named the executor of a deceased persons estate. The attorney was to sell off the assets/personal property. There was a newer model Cadillac in the estate that was to be sold. The car was in excellent condition with low miles. Guess who the attorney sold the car to? His own parents...and at a "steal" price. Conflict of interest? You decide. 

Permalink Reply by Dexter Green on April 16, 2015 at 3:31am

Zack, that sounds pretty shady.  Unfortunately there are bad actors out there and the level of scrutiny for every one of these bankruptcy deals is not high enough to catch them all.

Permalink Reply by Billy Park Whyde on April 16, 2015 at 2:57am

You're attorney should have known that's why you paid him!

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