United States District Court, N.D. Texas, Dallas Division
FINDINGS, CONCLUSIONS, AND RECOMMENDATION OF THE
UNITED STATES MAGISTRATE JUDGE
L. HORAN, MAGISTRATE JUDGE
William Paul Burch, the debtor in a Chapter 7 bankruptcy
proceeding pending in the United States Bankruptcy Court for
the Northern District, Fort Worth Division, Case No.
12-46959-mxm7, brings this pro se action against the
Chapter 7 Trustee appointed by the Bankruptcy Court.
alleges, in general, that he has been harmed by how the
Trustee has performed her duties. His specific factual
14. Specialized Loan Servicing (SLS) was not able to collect
on the invalid noted and, by misleading the Judge and
Plaintiffs inexperienced attorney, the Bankruptcy was
converted to a Chapter 7.
15. There were two SLS properties. One was sold but the
Mortgage Holder was holding the invalid lien and did not give
a proper payoff so the Plaintiff could close on the property.
The Trustee took over and closed on the property, giving SLS
what it wanted and keeping the rest. Half of the balance was
requested by the spouse of the Plaintiff, who was not in
bankruptcy and owned half of the community property, which
was in the Plaintiffs spouses name.
16. The Trustee sold two properties through a strawman sale
resulting in her diverting thousands of dollars away from the
estate and possibly part of it into her pockets.
17. Plaintiff alerted the Trustee of the pending agreement
between Plaintiff and the IRS to waive the remaining balance
since it was only interest. The Trustee, through her
attorney, convinced the IRS to reinstate a $125, 000 lien
that had been removed almost two years ago. Only about $26,
000 in interest was owed. The $125, 00 and penalties had been
18. Plaintiff was way ahead and was on track to complete his
Chapter 11 bankruptcy in July of 2018. The Trustee projected
that she would be done by December 2018 but has yet to finish
even though she has more than enough to pay the few creditors
in the estate.
19. Trustee has had her attorney represent Judge Mullin at
the expense of the estate when the Judge has an attorney
assigned to represent him at no cost to him.
20. Specialized Loan Servicing foreclosed on a property right
after they had convinced the Judge through a series of
deceptions. They did not even have a valid mortgage note and
the foreclosure was illegal in that they did not inform the
Trustee of the foreclosure. Upon finding out after the
foreclosure, the Trustee accepted a few thousand dollars on a
property that the Plaintiff had just put thousands of dollars
into for renovation.
Dkt. No. 3 at 3-4 (citations omitted).
civil action against the Trustee has been referred to the
undersigned United States magistrate judge for pretrial
management under 28 U.S.C. § 636(b) and a standing order
of reference from United States District Judge Karen Gren
undersigned enters these findings of fact, conclusions of
law, and recommendation that the Court should dismiss this
action without prejudice for lack of subject matter