Likely, you were driven to speak to a top-notch bankruptcy lawyer, such as The Law Offices of Loomis & Greene near Wellington, because you are feeling overwhelmed with debt. Your expert bankruptcy lawyer has guided you through filing bankruptcy and finally relief is in sight, especially since the automatic stay (where all creditors are told to cease trying to collect on their debts) has been in effect. However, now your bankruptcy case is in the hands of the bankruptcy trustee. But what exactly is a bankruptcy trustee?
The Law Offices of Loomis & Greene near Wellington offers the bankruptcy law services, as well as criminal law and divorce and family law. In this blog post, we’ll review the role of a bankruptcy trustee. Contact us today for your free consultation!
THE ROLE OF A BANKRUPTCY TRUSTEE
A bankruptcy trustee is the person appointed by the bankruptcy court to oversee your bankruptcy case. This person is not an employee of the court, but is an independent contractor assigned to their job by the United States Trustee Program, which is a division of the Department of Justice. This arrangement benefits the debtor since the trustee is impartial from the creditors and the government. Their main job is to review all of your paperwork for your bankruptcy and then decide if your bankruptcy petition should be discharged or approved per se. Oftentimes, your trustee is a lawyer or an accountant by trade.
The role of a bankruptcy trustee has been in place in the United States for over 150 years. The original intent of the trustee was to collect and distribute the debtor’s property to the creditors so that the court would not have to be responsible to do so. The main job of a bankruptcy trustee today includes:
- Verifying that your bankruptcy claim is not fraudulent
- Review all of your bankruptcy paperwork and verify your financial information
- Collect your property
- Sell assets for cash
- Divide up your assets to your creditors
- Be at the meeting of creditors
A bankruptcy trustee oversees a lot of types of bankruptcy cases, including Chapter 7 bankruptcy and Chapter 13 bankruptcy. In a Chapter 7 bankruptcy, the trustee’s role is super simple:
- Sell your nonexempt property (some assets can be considered exempt, depending on where you live) and repay your creditors
- Deciding whether it’s worth selling your nonexempt property
In a Chapter 13 bankruptcy, a trustee’s role is similar, but the job can take a lot longer:
- Oversee your repayment plan
- Setting the terms of your repayment plan, ensuring you can still live
- Collect and distributing your payments to your creditors
- Oversees the meeting of creditors
MEETING OF CREDITORS
Most likely, The Law Offices of Loomis & Greene near Wellington notes that you won’t actually meet your bankruptcy trustee until the meeting of creditors. It is here where you will verify your identity, using the standard forms (Social Security card and driver’s license), turn over proof of income, recently filed taxes, and bank statements. You will be asked a series of questions in order to ensure your financials are correct. You may see the trustee again at future meetings or when you turn over nonexempt property.
The trustee is paid based off the type of bankruptcy filed. It’s usually a certain percentage of your assets that are collected, sold, and then distributed (Chapter 7 bankruptcy) or it can be monthly percentage off your payment plan (Chapter 13 bankruptcy).
Final Advice for Your Bankruptcy Trustee
Remember your bankruptcy trustee has your financial future in his or her hands, so it will behoove you to be polite, courteous, and answer all of their questions non-evasively and concisely. Most trustees are there to help you, but some can be jaded just with the nature of the position, especially if they’ve seen a lot of bankruptcy fraud.
HOW THE LAW OFFICES OF LOOMIS & GREENE CAN HELP
The Law Offices of Loomis & Greene near Wellington offer compassionate bankruptcy services. We understand how hard it is to be at this point in your life, and our mission is to do our best to get you out of this valley and back on your way to the top. While this part of your life’s journey is challenging, it won’t last forever. Our bankruptcy lawyer team will work diligently and tirelessly to ensure your bankruptcy moves along with little hiccups along the way.
In addition, we can help you with all of your criminal law needs, and your divorce and family law needs. From child support, alimony, and property division, to DUI and assault charges representation, we want to help you when you need it the most. Our superb legal team near Wellington takes pride in all of our legal services, including landlord services. Should you choose to DIY your divorce, we can help guide you in the right direction. Contact us today for your free consultation!