The trustee in charge of liquidating convicted investment con Bernard Madoff’s company also went after his wife, Ruth Madoff. The trustee explained that while he is not accusing Mrs. Madoff of having any part of the fraud perpetrated by her husband, he is seeking some of her property.
The trustee’s complaint states that Mrs. Madoff transferred $11 million from one of Bernard Madoff’s Investment Security bank accounts to a real estate business in which she is part owner. Thus, while many of those affected by Mr. Madoff’s crime have been left with no means of supporting themselves, Mrs. Madoff is left living a life of luxury allegedly on their account.
Mrs. Madoff still stands by her claim that she is just as confused by Mr. Madoff’s actions as anyone else. Since Mr. Madoff admitted to the fraud, the couple has given up more than $80 million of their assets to prosecutors. But in an agreement with prosecutors, Mrs. Madoff was allowed to keep $2.5 million of the assets that the couple shared.
If you’re in a situation where a trustee is going after you for your assets, contact a Maryland or Washington DC bankruptcy attorney to help you sort out your bankruptcy situation.
Businesses and Bankruptcy
Under federal law, a trustee can recover assets from a company up to six years before it files for bankruptcy. This is exactly what is happening in the Bernard Madoff case with the trustee going after his wife for assets that may have been transferred to her from his company before the bankruptcy was filed. If your company is in need of help with a filed or potential bankruptcy, contact a Maryland or Washington DC bankruptcy lawyer today.
Types of Bankruptcy Trustees
The main role of a bankruptcy trustee is to make sure that the creditors who are included in a bankruptcy get the best chance at obtaining any assets that may not be exempted in a bankruptcy.
• Chapter 7 trustee: Determines whether there are more assets to liquidate that the debtor may have thought were exempted and safe from liquidation.
• Chapter 13 trustee: Has the same function as a Chapter 7 trustee for the most part but also acts as the disbursing agent for payments made by the debtor into his repayment plan under the bankruptcy.
• United States Trustee: Oversees Chapter 7 and Chapter 13 trustees. Reviews Chapter 7 cases for abuse or denial of discharge.
Working and communicating well with a bankruptcy trustee can mean the difference between losing a lot of property and/or having the bankruptcy case dismissed. Contact a Washington DC or Maryland bankruptcy attorney to help you navigate the new bankruptcy code for your potential or past bankruptcy.