Filing for bankruptcy requires more than just you and your bankruptcy attorney. There are several people involved such as the creditors, a judge and a trustee. It seems intimidating but with an experienced and knowledgeable bankruptcy attorney, it doesn’t have to be. Everyone plays a role and the process can be quick and respectful.
What does the Bankruptcy Trustee do?
Depending on the type of bankruptcy filed, Chapter 7 or Chapter 13, a trustee is assigned to oversee either the liquidation of assets or monitor the repayment plan. In the bankruptcy process, the trustee plays a big role. Reviewing claims by both creditors and debtors as well as collecting, liquidating and repaying creditors are the basic duties of the trustee.
How does this happen?
Upon filing for bankruptcy, a bankruptcy estate is established comprised of the debtor’s property and assets. The estate becomes the responsibility of the assigned bankruptcy trustee. They will oversee and control the estate throughout the case.
Type of Bankruptcy
In Chapter 7 cases, the basic duties of the trustee include: gathering and selling the debtor’s property as well as the property of the bankruptcy estate. They also challenge creditors’ claims and can object to a discharge when it is appropriate. The distribution of proceeds to creditors is also overseen by the trustee. This person will be present at any and all formal hearings you are required to attend for bankruptcy.
The duties of the trustee in Chapter 13 cases include: reviewing the proposed repayment plan for the debtor as well as objecting to the plan as needed. They also oversee and are responsible for collecting payments from the debtor and distributing the payments to the creditors. They can refuse to pay creditors if there is not enough proof that the debtor owes them.
Playing a major role, the bankruptcy trustee is not your enemy. Trustees were established by the United States Trustee Program through the Department of justice to to guard against fraud. They are trying to fulfill their duties so that debtors can get a fresh start through debt relief. Being honest about your assets will make for a fast and quick process.
If you are seeking debt relief and want to file personal bankruptcy, seeking advice from a bankruptcy attorney is recommended. The bankruptcy attorneys at Hines Law can help. Representing personal bankruptcy clients throughout Massachusetts, Hines Law is a full-service legal firm that handles all types of personal debt relief matters. We specialize in Chapter 7 and Chapter 13 cases as well as help clients implement a plan to rebuild their financial future. Call us today for a Free Case Evaluation!