4. Federal Bankruptcy Protection

Chapter 7

In Chapter 7 bankruptcy cases, the debtors attorney gets paid in advance.  If you have more debt than assets, that works out fine for the debtor. The problem arises when an inadvertent creditor, with the ability to pay his debt comes into a Chapter 7 by mistake, thinking he can pay his obligations, and continue with his business. Or, if he has been in any other Chapter and is then forced into a Chapter 7.

In these cases, the Chapter 7 Trustee can take the Debtors assets, and convert them into fees for the benefit of the Trustee. Since the Chapter 7 Trustee takes control of all the Debtors assets, the Debtor is left with no money to pay for an attorney to defend the Debtors estate

Bankruptcy court has almost unlimited power over assets and debt, and presents a large incentive for corruption. There can develop alliances that are self serving, where some Debtors can be taken advantage of, while those connected with these alliances are favored.  

The Chapter 7 trustee has few limits on the fees he may charge, and has incentives to develop particular talents for presenting large administrative fees. These conditions can make for activities that can become very compromising, self serving, and the opposite of the stated goal of debtor protection.

 "Bankruptcy court corruption is not just a matter of bankruptcy trustees in collusion with corrupt bankruptcy judges. The corruption is supported, and justice hindered by high ranking officials in the United States Trustee Program --".   AG Ashcroft,  Attorney General

Because the Creditor filed a wrongful foreclosure, and I was not given the 30 days required under our agreement, in a rush, I looked for a Bankruptcy attorney, but none would help me.  

Without an attorney, I make the mistake and file a Chapter 7.

In most cases a Chapter 7, can be converted to a Chapter 13 or 11, and that creditor will be permitted to pay his obligations, his attorney, and continue with his business.

Of course, the Chapter 7 Trustee is required to take care of the estate he has been entrusted with, and the Trustee Program is charged with keeping these Trustee's honest. Nonetheless, so far in my case, I have not found anything that stops a Trustee from doing anything they wish, including converting my entire estate to his benefit. 

Obviously a court can favor you, or it can harm you. It can be all about relations, and favors, who you know, not what you know.

I will come to learn the importance of a fair court system, and the power courts can have over individuals.  

A court system too politically influenced could explain why politicians would act with such unison, Trump placing judges to the court based on loyalty, and not qualification. Putin attacking adversaries via a court system under his control.

Erroneously, I concluded just that. From what I had read of “bankruptcy protection”, and what I naively believed about justice, this court would provide a solution for me to pay my obligations, and permit me to continue with my business.   

On August 3, 2015, I filed a, pro se,  petition for relief under Chapter 7 of the Bankruptcy code.

Like I said, “erroneously”, a mistake! What will happen is unexpected, because I expect, as the word implies,  justice should to be “just”. What I will learn is that there are two definitions for this word, and the American definition is more of an ideal we work for, than a reality.     

What I have learned so far…

1. Politics is a closed gang, with the intent of profiting from the unaware.

2. Business is competitive, and if you control enough locals, you can run anyone out of town, take all they have, and they won’t even know what happened.    

3. Justice can be easily controlled, because people are trusting, and they are governed by self interest.

4. Justice can be controlled from the local, to the federal level.   

5. Bankruptcy is a very powerful court, it can make, or break people.

6. If there is corruption, this court is where the most money can be made.

Think of this as the art of the deal.

I make deals, create millions in debt, then I show up at bankruptcy court, my associates at the court get rid of all my obligations,  and I am left with the assets!  Sound familiar?

Trump’s companies have filed for Chapter 11 bankruptcy protection, which means a company can remain in business while wiping away many of its debts.  Washington Post  

I will find an attorney, and he will convert the case to a Chapter 13

October 15, 2015-  20 Minute  Meeting of Creditors  with Chapter 7 Trustee, Neil Gordon

October 25, 2015- Motion to convert to Chapter 13  

March 9, 2016  Chapter 7 Trustee, Neil Gordon Files and is given $11,848,00, in compensation, http://metroecho.com/node/332

It started off hopeful  

After filing the Chapter 7 I soon find an attorney that will take this case, Richard Valldejuli. He filed a Chapter 13, and told me I could now lease out my building. I found tenants, and leased out the building, people moved in, a mechanic leased space and a garage was built.    http://metroecho.com/node/390

Also a utility service provider leased space for trucks and office.

Now free to continue my storage business we had our first customers. We found strong demand and felt very optimistic. http://metroecho.com/node/354

The case was converted to Chapter 13 by order entered on December 16, 2015, whereupon a fast track approach was requested by the court to cure the default by sale of my other properties.

My marketing efforts in Chile had paid off, I now had sales pending in Chile. I needed to overcome the legal requirements for me to sell my properties in Chile, for that I would need to go to Chile.  

We had a trial date set for the day I was to travel to Chile, to sell property. I expressed my concern to my attorney that I would miss the trial. Valldejuli said not to worry, he would take care of things at court. He said, “ you just go to Chile, and kick ass, I will take care of things here”  He even had offered to pay my ticket, why? I supposed because he would be paid well.     

I felt confident, Valdejulli told me he was friends with the Judge, and the Trustee.  

I quickly complied with the courts orders. With a combination of income and property. I timely paid all requested obligations by the court. I had more sales that I could have closed, but Valldejuli told me not to sell them, to stick to the Chapter 13 plan. These additional pending sales, would have paid off all obligations, and in fact ended the bankruptcy since there would have been no debt left.

Between March and July of 2016, we made all payments required by the court, totaling to the amounts of $17,674.75 directly to the Creditors and $4,375.00 to the Chapter 13 Plan.

On June 23, 2016 Arnall Golden Gregory LLP (“AGG”), Jerry E. Austin and Lawson Realty, Inc. file objections to the Chapter 13 plan. (Doc 84 Filed 06/23/16) An Objection is  also filed by Chapter 7 Trustee, Neil Gordon employed by W Arnall Golden Gregory LLP (“AGG”).

I had been in Chile selling properties, sending the money to pay obligations to my attorney. I was not told there was any issue with the case, my attorney had me understand all was well. I would later discover my attorney had appeared in Court twice before, and was told to file documentation of the sales, he ever filed the requested documentation.   

The aggressive stance of the objection, led with misleading statements presented to the Court, was further assisted by Valldejuli’s  failure to timely file documentation of the sales. The Chapter 13 plan was not confirmed. The Case was converted to Chapter 7 on July 13, 2016 [Doc. No. 91], and Trustee was re-appointed on July 18, 2016 [Doc. No. 93]

The nature of the flaws of the Chapter 13 plan, could have been simply remedied. I had far more assets than what was owed, and had demonstrated I could “cure by sale” my obligations. This is not about a speculation of a potential sale, I demonstrated these sales were real, and had proven I could do this!

This situation keeps getting more, and more absurd. The creditors are going out of their way, not to get paid.  I worry, how big can this group behavior get. I imagine that the same situation I witnessed in Douglas County, where the Judge, District Attorney, Bail Bondsman and defense attorneys are all in the same pack, can this also extend to a federal court.

Group behavior is the very nature of society and groups can become very large. Clicks form in school yards, and as adults we form organizations to influence particular group agendas. In a free and democratic nation, these groups can be very influential. Groups can be far more successful if unseen and covert, this is not a conspiracy, it is a simple fact.

There is Justice, and there is Justice

What motivated this conversion back to Chapter 7… If an internal sale of the property can be conducted, with the aid of the Chapter 7 Trustee, the Creditor could manipulate a “straw buyer” and  get his property back, which now has a far higher value than when sold to me. But, of course, that could not be, that would be fraud.

I purchased 155 Liberty Road at the tail end of the 2008 crash, during difficult economic times. Part and parcel to the sales agreement was a 5% mortgage, provided by the seller. The purchase price was high, the value of the transaction, for me as the buyer, was in the mortgage offered by the seller. I weathered those difficult years, and now property values were rising, interest  rates would also be rising. Of course it would be to the advantage of the seller to push for any events that might prevent me from paying my obligations, and thereby causing me to loose the property to him.

Then maybe, it could also be, what Jerry Austin is doing is punishing me. Maybe I must have done something worth punishing. What?  Being against Foxhall?  Helping the election of Commissioner Ann Guider? Working to Build River City?  Maybe they just want me out of town.       

Maybe I am a little too dark for them, or they just don’t like the way I look. All is nothing more than imagined speculation, without any proper investigation by authorities.

If there is an organized group this large, then there could also be political benefits for everyone involved.

If perchance the seller is an important local lord, then, all favors would be awarded.  

There is also the simple fact that there is a good deal of money involved. The administration of my estate by a Chapter 7 Trustee, if managed to favor legal fees, would provide years of income for the Trustee, and his law firm Arnall Golden Gregory LLP.

The primary aspect of any conspiracy is to remain hidden, you don’t tell anyone what is really going on, you don’t want anyone to take notice. If anyone claims a conspiracy, you scream absurdity, and madness. For this reason the larger the conspiracy the easier it is to hide. If people have never seen something, they have a difficult time accepting it, and it is even more difficult to accept if it is a very large scale event.  

J. Edgar Hoover did not believe in organized crime until the results of it were very apparent across the nation. In Hoovers' case, depending on his motivation, he either did not believe, or pretended not to believe. If he was part of a larger antinomian movement he would have pretended to disbelieve. 

There are many motivators that could explain why the Trustee and the creditors now wish to liquidate all I own, and there is no way of knowing what, or who - without a proper investigation.  

What is absolutely clear is that in a Chapter 7 is that all I have is taken from me, and I will not be able to hire an attorney to defend myself.  

Next ... 5. Treason - You can eat a democracy the same way you eat an elephant, one bite at a time.