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 Bankruptcy
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 Bankruptcy
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
Reminder
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 attorney who
understands Brooklyn bankruptcy laws. Not all bankruptcy attorneys
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.