Do U.S. bankruptcy laws deprive individuals of their Constitutional rights?

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Q. Do U.S. bankruptcy laws deprive individuals of their Constitutional rights? Every year thousands of Americans file for bankruptcy seeking a fresh start. bankruptcy law is reputed to protect the debtor. But what if the bankruptcy trustee has "unlimited powers" and you get a trustee that abuses that power? Dr. Glen Heidemann found out the hard way what can happen. A licensed clinical psychologist and former University of Arizona professor, Dr. Heidemann filed a Chapter 7 Re-Organization years ago, in order to protect the historic Wild Horse Ranch from creditors. Prior to filing, Dr. Heidemann was told that the bankruptcy proceedings would last approximately three months and protect his asset. The asset is an historic dude ranch where John Wayne, Jimmy Stewart and other film notables stayed while filming at nearby Old Tucson studios. The Ranch was operating as a tourist resort and facility for weddings, business conferences, retreats, and other events. Instead,of a prompt re-organization, the trustee dragged out the bankruptcy proceedings for three years -- until Dr. Heidemannís Foundation for Health Research and Prevention, which holds title to the Ranch, was drained of tens of thousands of dollars. The trustee claimed for the trust all revenues from the dude ranch for, while dispensing no operating funds for the enterprise. In order to stay in business, Dr. Heidemann was forced to use his personal assets, rather than ranch revenue, to pay ranch operating expenses. Amid other questionable actions by the trustee, vested with unlimited powers, was the trusteeís removal of Dr. Heidemann from his own property via nine sheriffís cars. Although bankruptcy laws do not allow the removal of assets from the trust, Dr. Heidemann was denied items which belonged to him personally, rather than belonging to the Foundation which was in bankruptcy. Dr. Heideman was denied his own clothing and his pet dog. The trustee disposed of Dr. Heidemannís dog without notification. And Professor Heidemann lived in an RV for six months with only the shirt on his back. During the long, drawn-out series of questionable actions by the trustee, Dr. Heidemann sought legal recourse to object to how bankruptcy proceedings were being handled. He requested hearings to argue against perceived abuses of the law, and found he had no recourse to be heard. He felt that his Constitutional rights of due process were being denied. Four years ago, Dr. Heidemann purchased the Wild Horse Ranch in a bankruptcy auction in order to preserve this historic property from real estate development. On Tuesday, September 14, the Wild Horse Ranch will be auctioned at a bankruptcy sale. And Dr. Heidemann will be two million dollars poorer than when he filed a Chapter 7 to protect his assets.

A. I don't know where you got your info from but someone is misinformed or has misinformed you. Chapter 7 is a LIQUIDATION in every state according to the Bankruptcy code Title 11. Look it up on the internet... I have a 7 and I was shit poor at the time and had no assets so I lost nothing. You're a fool if you have possessions, like a home etc. and go through the process of Ch. 7. The Trustee's job in that case is to liquidate your assest to pay creditors. No secret there. When your assets are liquidated, it means they are sold, auctioned etc. for cash to pay your creditors. This is why many homeowners choose to do Ch. 13 which is the reorganization of debts you speak of and allows them to keep their assets. Are you trying to "scare" folks out of their constitutional choice to request relief? Actually, I don't care whether you are or not, I just can't beleive how misinformed you are.

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