Oak Park Real Estate & Estate Planning Blog

Bankruptcy trustees oversee consumer and commercial bankruptcy cases, but trustees perform different roles depending upon the type of bankruptcy filing. In reorganization bankruptcies, as a recent article in The Yale Law Journal notes, there are specific trustees that handle Chapter 13 consumer bankruptcy cases, while businesses filing for Chapter 11 typically perform the role of trustee themselves as a debtor-in-possession. In other words, trustees are different and distinct when it comes to consumer and commercial reorganization bankruptcy cases. Yet as the article points out, the same distinction does not exist in Chapter 7 bankruptcy cases, and consumers who are filing for a liquidation bankruptcy ultimately could suffer the consequences. Argument for Distinction Between Consumer and Business Trustees in Chapter 7 Bankruptcy Cases What is the argument for a clearer distinction between consumer and business trustees in Chapter 7 bankruptcy cases? The article in The Yale Law Journa...

When you are considering filing for Chapter 7 or Chapter 13 bankruptcy in Oak Park, it is important to learn more about the bankruptcy process in general and the various steps you will need to go through in a liquidation or reorganization bankruptcy. Since U.S. bankruptcy law is quite complicated, it can be difficult to have a clear understanding of some of the terms that are used in discussing bankruptcy law and consumer cases. An important party in a bankruptcy case is the trustee, yet many debtors do not fully understand what a trustee is, or what role the trustee plays in a bankruptcy case. The trustee’s role will depend upon the type of bankruptcy, but in general, the trustee’s job is to administer the bankruptcy estate and to handle issues in the bankruptcy case. Our Oak Park bankruptcy lawyers can explain. Who is a Trustee? Bankruptcy trustees are neutral or impartial third parties who are responsible for the debtor’s assets and administering aspects of the bankruptcy case. The...

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...

Filing for consumer bankruptcy is an extremely complicated process. Whether you are simply considering bankruptcy as one of your options or have begun to look more carefully into actually filing soon, it is important to learn more about the bankruptcy trustee. In researching Chapter 7 bankruptcy or Chapter 13 bankruptcy , you have likely come across information about the bankruptcy trustee and that person’s role in the process. However, it can be confusing to understand precisely what the trustee does, and what the debtor’s relationship to the trustee will be. The U.S. Department of Justice gives answers to frequently asked questions about the bankruptcy trustee, and we want to provide you with some of that information. Who or What is a Bankruptcy Trustee? First, there is an office of the U.S. Trustee, which is within the U.S. Department of Justice. One of the primary roles of this office is to appoint bankruptcy trustees in Chapter 7 and Chapter 13 bankruptcy cases, as well as to ...