What Does a Trustee Do in a Bankruptcy Case?
If you decide to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, a bankruptcy trustee will be assigned to your case according to U.S. bankruptcy law. Depending upon the type of bankruptcy, the trustee will play different roles and will have a distinct function. Your Oak Park bankruptcy attorney can ensure that you file all materials appropriately and that you do not run into any errors concerning the bankruptcy trustee. In the meantime, we want to provide you with more information about the role the bankruptcy trustee plays in different types of consumer bankruptcy cases.
Chapter 7 Bankruptcy and the Trustee’s Role
In a Chapter 7 bankruptcy case, the trustee will play a different role than in a Chapter 13 case. Since Chapter 7 bankruptcy is a liquidation bankruptcy, the debtor will need to provide detailed information about all assets (both exempt and non-exempt), and all non-exempt assets will be liquidated (i.e., sold) in order to repay existing creditors. Here is where the bankruptcy trustee’s work begins.
When you file for Chapter 7 bankruptcy, you will file a petition and a lot of different documents. Within those documents, you will need to provide disclosures that give full and accurate information about your assets, your debts, your income, and other general financial information. These materials will go to the bankruptcy trustee, who will review them and scrutinize them for any errors or discrepancies. In addition to providing the bankruptcy trustee with information about your assets and finances, you will need to send the bankruptcy trustee information that shows your disclosures are accurate, such as your tax returns, your paystubs, and similar materials. Once the bankruptcy trustee verifies that all materials match up, you will move onto the 341 meeting of creditors.
The bankruptcy trustee conducts the hearing that is the 341 meeting of creditors in which creditors can ask you questions about your assets and other information. Under oath, you will need to answer questions posed by creditors and/or the trustee. Then, the bankruptcy trustee is responsible for liquidating your assets and using the proceeds to pay creditors.
Bankruptcy Trustee’s Role in a Chapter 13 Case
Since Chapter 13 bankruptcies are reorganization bankruptcies, the trustee will play some of the same roles as in a Chapter 7 case, but some different roles, too. Similar to a Chapter 7 case, the trustee will review your petition and paperwork, and will verify your financial information and eligibility for the bankruptcy. The trustee will also conduct the meeting of creditors.
Then, the primary role of the trustee in a Chapter 13 case is to review and administer your repayment plan. You will send the monthly payments associated with your reorganization plan to the trustee, who will then make payments to your creditors. Since most Chapter 13 plans last from three to five years, you will be in contact with the trustee for that same amount of time.
Contact an Oak Park Bankruptcy Attorney
If you have questions about the trustee in a bankruptcy case, or about consumer bankruptcy more generally, one of our Oak Park bankruptcy lawyers can help. Contact the Emerson Law Firm for more information about our services.
See Related Blog Posts:
Are Consumer Bankruptcy Filings Problematically Low?
How Will I Know if I Should File for Bankruptcy?
Chapter 7 Bankruptcy and the Trustee’s Role
In a Chapter 7 bankruptcy case, the trustee will play a different role than in a Chapter 13 case. Since Chapter 7 bankruptcy is a liquidation bankruptcy, the debtor will need to provide detailed information about all assets (both exempt and non-exempt), and all non-exempt assets will be liquidated (i.e., sold) in order to repay existing creditors. Here is where the bankruptcy trustee’s work begins.
When you file for Chapter 7 bankruptcy, you will file a petition and a lot of different documents. Within those documents, you will need to provide disclosures that give full and accurate information about your assets, your debts, your income, and other general financial information. These materials will go to the bankruptcy trustee, who will review them and scrutinize them for any errors or discrepancies. In addition to providing the bankruptcy trustee with information about your assets and finances, you will need to send the bankruptcy trustee information that shows your disclosures are accurate, such as your tax returns, your paystubs, and similar materials. Once the bankruptcy trustee verifies that all materials match up, you will move onto the 341 meeting of creditors.
The bankruptcy trustee conducts the hearing that is the 341 meeting of creditors in which creditors can ask you questions about your assets and other information. Under oath, you will need to answer questions posed by creditors and/or the trustee. Then, the bankruptcy trustee is responsible for liquidating your assets and using the proceeds to pay creditors.
Bankruptcy Trustee’s Role in a Chapter 13 Case
Since Chapter 13 bankruptcies are reorganization bankruptcies, the trustee will play some of the same roles as in a Chapter 7 case, but some different roles, too. Similar to a Chapter 7 case, the trustee will review your petition and paperwork, and will verify your financial information and eligibility for the bankruptcy. The trustee will also conduct the meeting of creditors.
Then, the primary role of the trustee in a Chapter 13 case is to review and administer your repayment plan. You will send the monthly payments associated with your reorganization plan to the trustee, who will then make payments to your creditors. Since most Chapter 13 plans last from three to five years, you will be in contact with the trustee for that same amount of time.
Contact an Oak Park Bankruptcy Attorney
If you have questions about the trustee in a bankruptcy case, or about consumer bankruptcy more generally, one of our Oak Park bankruptcy lawyers can help. Contact the Emerson Law Firm for more information about our services.
See Related Blog Posts:
Are Consumer Bankruptcy Filings Problematically Low?
How Will I Know if I Should File for Bankruptcy?
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