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For people filing bankruptcy, it is important to understand that while the bankruptcy trustee appointed to your case will probably be a lawyer, he or she is not your lawyer. In fact, the trustee’s goal is going to be to reclaim as much money as possible for your creditors. In either a Chapter 7 or Chapter 13 bankruptcy case, the trustee is responsible for: - Reviewing your initial bankruptcy petition and paperwork
- Conducting a further personal investigation of your property and your finances
- Examining and objecting to proofs of claim, which tell the court what you owe the creditor at the time your case was filed
- Sending required notices and provides relevant information to related parties
- Opposing your discharge on the basis of fraud
Trustees are going to be looking for different things and involved for different lengths of time, depending on whether you are filing Chapter 7 or Chapter 13. In a Chapter 7 bankruptcy, the main goal of the trustee is to liquidate your non–exempt assets for the benefit of creditors. A bankruptcy attorney can help you retain personal property through exemptions. While the trustee is looking for non-exempt assets to liquidate to cash for your creditors, he or she also receives a percentage of the funds he or she collects, which gives the trustee incentive to maximize the amount of assets recovered. In a Chapter 13 bankruptcy, the trustee is less likely to be taking your assets since you will be repaying. In these cases, his or her compensation is a percentage based on the monthly payment schedule set up to pay your creditors. While a Chapter 7 case may be resolved in a matter of months, the trustee will be much more involved in a Chapter 13 filing because the case will take years. Kevin D. Judd
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bankruptcy trustee, chapter 7 bankruptcy, chapter 13 bankruptcy,
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