Q: Is it appropriate for a creditor to file a 542 motion for turnover of assets he claims are not property of the estate?
A creditor filed claims against the estate, then years later filed a motion pursuant to 105 and 542 for turnover of assets which are almost identical to the amounts alleged in his previously filed claims, asserting that these were not assets of the estate under 541.
Note - many of this creditor's claims are false and/or predicated on other frauds
A: Yes, if there is a reasonable basis for him to do so. No if it is based on fraud or deceit.
Jonathan David Warner agrees with this answer
A:
There’s a lot more information needed to answer your question. You’ve asked your question in a manner that answers itself, which immediately leads me to believe that you’re leaving out some details - we all know that it’s never acceptable to file false claims with a Federal Court.
A Motion for Turnover is going to be heard before a Judge. If you actually have evidence that there’s a fraud being perpetrated against you, bring that evidence to your hearing and fight the Motion.
On a side note, the penalty for bankruptcy fraud is quite steep and, most of the time, quickly discoverable. It’s very unlikely that a creditor is going to risk fines and/or jail time to obtain access to a house or a car.
There’s a difference between fraud and disagreement. You don’t want to make an accusation of fraud, and then proven wrong. You’d lose credibility with the Court and likely lose out on the relief your seeking.
Your best bet is to contact an attorney and disclose all relevant facts of your case and determine if there is a solution to your problem.
Good luck with your case!
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