My mother made her bank the trustee for her accounts so they could pay her bills for her.
Only the trustee handling the case can answer that. It is at the descretion of the trustee of who, how, and when to allocate the assets.
The Trustee keeps anything that is not exempt. If your settlement is part of the bk, and is not exempt, it will be used to pay off your creditors.
You might have had assets in excess of your statutory exemptions that the trustee is legally obligated to collect and pay your creditors.
Trustee is not the owner of the property and hence he will have no right to sell the property held under trust.
Your case is handled by a court, with a judge. The trustee is essentially on that staff. Better get your facts and laws straight. Its a serious accusation your bringing. The Trustee is actually working on your behalf to pay YOUR bills....if that's where the money went...to pay your debts, not to his benefit....he probably just did what he was supposed to. But what do you think should be legally done with the money you received other than pay those you owe and swore you would pay?
If you pay off your Chapter 13 early and receive your discharge, you won't need permission from the trustee for anything. The case will be over and you can make whatever purchase you qualify for.
The party involved will have to remit the amount to the trustee or formerly exempted property can be seized and liquidated to cover the amount of the tax refund. If neither option is possible the trustee can request that the BK be dismissed with prejudice.
A "spray trust" or "sprinkle trust" is created when the settlor gives the trustee discretion to pay income out of the trust to any of the beneficiaries of the trust as their needs appear. Thus the trustee has discretion to "spray" the income among the various beneficiaries. The trustee has a fiduciary duty to inquire as the the beneficiaries finances to assure the trustee's standard of living can be maintained.
As trustee that is their responsibility.As trustee that is their responsibility.As trustee that is their responsibility.As trustee that is their responsibility.
The tax refund goes into the bankruptcy estate. If your chapter 7 filing did not exempt the refund, the money will be used to pay the trustee and to pay your debts pro rata. That is, each creditor gets an amount equal to the percentage the debt is to the total indebtedness. You are not likely to get anything back, but if all the debts are paid off 100 per cent and the trustee is not entitled to any more money, the balance will be paid to you. The trustee should have decided what s/he is going to do. If you have a lawyer, s/he should discuss it with the trustee. You can also talk to the trustee or your case manager. I doubt you will get any of the refund, but make sure to stay on top of the issue and get notices of any trustee motions regarding these funds.
What kind of "trustee?" "Trustee" for WHAT?