Trustee Blog

Trustee Conflicts

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Riverside Chapter 7 Trustee Arturo Cisneros is the also a named partner in a large firm that deals with representing mortgage creditors. From time to time Mr. Cisneros will be assigned a chapter 7 bankruptcy case as a Chapter 7 Trustee while the debtor has a mortgage with a client that Mr. Cisneros’ firm represents.

Mr. Cisneros’ staff is very good about running a conflict check and immediately notifying the debtor’s counsel, the debtor, the court and all the creditors that he is resigning from the case. The case is then reassigned to another Riverside Trustee. So if Mr. Cisneros is your Trustee when your client files the case and then a week later he is not, this is probably the reason.

 Practice Pointer:

If your case is assigned to Mr. Cisneros and then he resigns, the date and time of the original hearing will be changed. So your office may have the hearing calendared the original date, and then not realize that the date and time and trustee have changed.

 Practice Pointer Number 2.

If Trustee Cisneros resigns, be sure to send the newly assigned trustee the taxes. The new trustee will want the taxes sent to him or her.

 Practice Pointer 3

Some of our Chapter 7 Trustees are also attorneys like Mr. Cisneros. If your client had ever consulted a Bankruptcy Trustee on a legal matter, then this is another area in which a Chapter 7 Trustee would resign. This does not happen as much these days since we do not have as many chapter 7 trustees in Riverside that do debtor work. But ask your client after you are assigned the Chapter 7 Trustee if your client knows the Trustee. If your client knows the Trustee, that relationship should be brought to the Trustee’s attention prior to the hearing to prevent a potential conflict.

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