The Role of a Trustee in a Bankruptcy Case

Ok, you are getting a fresh start on your financial situation by filing for bankruptcy. One of the important players that you are going to be interacting with in the case is a bankruptcy trustee. A bankruptcy trustee is a lawyer assigned to oversee your bankruptcy case. Their role in the case differs as to whether your bankruptcy case is Chapter 7 or Chapter 13.

In Chapter 7 Bankruptcyr
In a Chapter 7 liquidation case, a trustee is selected at random from a panel of lawyers. Their main goal is to sell property and distribute the proceeds to creditors. In this process, a trustee sits down with the debtor during a “341 meeting” and asks them questions about their assets and financial affairs. From there, trustees review bankruptcy documents and is entitled to ask questions to find out if any nonexempt property, assets, or items can be seized by the trustee and sold to satisfy debts.

In Chapter 13 Bankruptcyr
In a Chapter 13 reorganization, a trustee’s role differs somewhat from a Chapter 7 bankruptcy. A debtor still meets with a trustee in a 341 meeting and is asked about assets and financial affairs. However, the trustee cannot take any of their property or assets. Instead, they assess the bankruptcy plan to see if it fits technical requirements and if it seems like it has a reasonable chance of success in repayment. Additionally, many trustees in Chapter 13 offer financial counseling and management.

A Reminderr
It is important to to remember a couple things about a bankruptcy trustee in order for a case to run smoothly and carefully. First of all, they aren’t your enemy who is seeking to suck you dry of all of your money. Their main goal is not to pick through your possessions to sell them off. In fact, most are quite reasonable people who are simply trying to do their job. In relating to a trustee, a debtor first of all needs to be honest. That includes an accurate listing of your assets because inaccurate disclosure can lead to criminal prosecution and a loss of discharge.

Trustees are not the only aspect of a bankruptcy case that is important to be informed about. If you are seriously considering bankruptcy and you live in Brooklyn, you need to consult with an atto
ey who understands Brooklyn bankruptcy laws. Not all bankruptcy atto
eys are the same. While the process appears complicated, the Brooklyn bankruptcy lawyers at Doyaga and Schaefer will be able to help you understand your options and avoid making bad decisions. Stop the harassment, the worry, the financial stress. For a free same-day consultation, call 718-488-7500 or 516-656-7500, or visit our website at bigapplebankruptcy.com for more information.