When you decide to file bankruptcy, you will have a trustee assigned to your case. The trustee takes on a number of important tasks and administers your case. Their goal is to assess your circumstances, ensure that you are not hiding property, manage the property in the bankruptcy case, and manage payments.
Who Is the Trustee?
Trustees are appointed by the courts. Trustees are typically accountants or lawyers.
Trustees in Chapter 7 Bankruptcies
In a Chapter 7 bankruptcy, the ultimate goal is a discharge of all qualifying debts. The trustee is expected to be impartial throughout the process. They receive a small fee for their services, as well as a percentage of any property sold. This serves as extra motivation to find property that people who file bankruptcy may try to hide.
After you file your bankruptcy petition, your trustee will review and verify everything. They also have the chance to ask you questions at the meeting of creditors. In many cases, the trustee simply asks basic questions regarding the accuracy of your bankruptcy petition and the information included in it. If anything doesn’t line up, they may dig deeper to understand any discrepancies. If they believe you are concealing assets or hiding property, they may even object to your discharge.
If you have any nonexempt property that must be sold off to pay your debts, the trustee will oversee this process.
What Trustees Do in Chapter 13 Bankruptcies
Trustees in Chapter 13 cases take on additional tasks and responsibilities. They still review your bankruptcy forms and personal information, but they also handle your repayment schedule. If there are any issues with your proposed repayment plan, the trustee may voice opposition and require a revision. Once the plan is approved, your trustee will collect payments and distribute them on your behalf to creditors. During this time, they must maintain documentation of all payments made by you and how they distribute money to creditors.
Your Communication With the Trustee
In most bankruptcy cases, creditors don’t attend the meeting of creditors. As a result, most of your communication will be through your attorney, who will, in turn, communicate with your trustee. If you file for Chapter 7 bankruptcy, your attorney will likely only communicate with your trustee during the 341 meeting. If you file a Chapter 13 bankruptcy, your attorney may communicate with the trustee more frequently until you finish the 3-5 year repayment plan.
Are you ready to find out if bankruptcy is the right choice for you? Discuss your options now by contacting Blossom Law at (704) 271-9078.