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Millionaire Chapter 7 Debtor had Meeting of Creditors in his NYC Luxury Townhouse

Millionaire Chapter 7 Bankruptcy Debtor had Meeting of Creditors in his NYC Luxury TownhouseWritten by Craig D. Robins, Esq.
 
If you are wealthy enough and in bankruptcy, can you get the Chapter 7 trustee to make a house call for the meeting of creditors?   In a recent case, the answer was yes.
 
My friend and colleague for over 20 years, Long Island bankruptcy attorney Salvatore LaMonica, is the newest Chapter 7 trustee appointed to the panel in the Southern District of New York.  Congratulations to Sal!
 
One of his first cases was the Chapter 7 filing of disgraced Manhattan lawyer Marc Dreier, who is accused of defrauding hedge funds of $700 million.  See: Long Island Bankruptcy Lawyer Salvatore LaMonica Named as Trustee in Major Swindler Case [1].
 
Because Dreier was under house arrest, and because Sal believed that there may have been valuable non-exempt assets in Drier’s multi-million dollar Manhattan townhouse, Sal did not hesitate to arrange to conduct the meeting of creditors there.
 
It was a good decision.  Shortly thereafter, Sal arranged to auction off the townhouse and Drier’s two Hamptons waterfront properties, together valued at about $15 million.
 
This house call was certainly out of the ordinary.  Usually, when a debtor is incarcerated or under house arrest, the debtor’s attorney will either make arrangements to get permission to go to court for the meeting of creditors, or will try to have it done over the phone.
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