Distribution to Siskey creditors cannot occur until (1) the Bankruptcy Court makes its rulings on the allowed amount of each claim in the four bankruptcy cases; (2) the Administrator of the estate of Richard Siskey is able to determine allowed claims against that probate estate; and (3) there are funds to distribute.
Allowance of Bankruptcy Claims. The bankruptcy proof of claim deadline passed on August 23, 2017 with 262 claims having been filed across the four bankrupt cases/entities. The chapter 7 Trustee’s duties include reviewing each claim in detail and reconciling each with bank, tax, company, and other records. Though the Trustee’s office has been working through this process as claims have been filed, that process is not yet complete. After the Trustee has completed review and reconciliation of claims, he will file with the Bankruptcy Court a Report of Claims, Objections to Claims, and Recommendations Regarding Claims (a “Claim Report”). This pleading will be served upon each person who filed a claim, as well as all other parties receiving notice in the bankruptcy cases. The Claim Report will list each claim along with the Trustee’s recommendation to the Bankruptcy Court. The Claim Report will be accompanied by a Notice of Opportunity for Hearing setting forth a period of time for claimants to file an objection or other response to the Claim Report. There will be a hearing set in the Bankruptcy Court for consideration of any filed responses to the Claim Report. Ultimately, the Bankruptcy Court will make a ruling on the allowed amount of each claim for purposes of the bankruptcy process.
Allowance of Probate Estate Claims. In addition to claims against the four bankruptcy entities, there are additional persons who have claims against the estate of Richard Siskey which are not claims against any of the bankrupt entities. The deadline for filing claims against the estate of Richard Siskey ran on August 24, 2017 and the Trustee understands that Lane Williamson, the Administrator of the Estate of Richard Siskey, is reviewing those claims. Some of those claims will need to be litigated in the appropriate court.
Securing Funds To Distribute. The Trustee continues to work with Diane Siskey and Lane Williamson, the Administrator of the Estate of Richard Siskey, to secure funds to distribute to those holding allowed claims in the bankruptcy cases or in the probate estate of Richard Siskey. Mrs. Siskey has placed life insurance proceeds of $37,495,257.43 in an escrow account and the trustee is holding in escrow funds from the sale of the Siskey home and certain personal property of Mrs. Siskey totaling $1,898,221.29. Mrs. Siskey has expressed her desire that those funds in escrow be used to satisfy claims of creditors of the four bankruptcy entities and the Richard Siskey probate estate, but also has to resolve certain other claims against her, such as claims made in a recent lawsuit. Release of those funds requires either the formal consent of Mrs. Siskey or litigation. In addition, Mr. Williamson is holding funds from the sale of certain assets of Richard Siskey.
Unfortunately, this process may take some time. Know that the Trustee and the Administrator are doing everything possible to resolve claims and secure funds to distribute on those claims as quickly and efficiently as possible. The Trustee asks for the patience of those with claims as we work through this process.