What Does the Trustee Do During My Bankruptcy?
In every bankruptcy case, a trustee is assigned to oversee the proceeding. Depending on the complexity of the case, the trustee can have a broad range of responsibilities in a bankruptcy. Generally speaking, though, the trustee has two main responsibilities. One is to work on behalf of the creditors to recover as much of the debt as possible. The other is to keep the entire process moving forward as smoothly as possible.
Many people who are unfamiliar with the bankruptcy process have a lot of questions about what the trustee does and what type of power he or she has in a bankruptcy proceeding. At the Price Law Firm, represent clients in all types of consumer bankruptcy matters, including Chapter 7 and Chapter 13. Our lawyers will take the time to explain the trustee’s role and the entire bankruptcy process to you.
The Trustee’s Role in Chapter 7 and Chapter 13 Bankruptcies
If you are filing for Chapter 7 bankruptcy, your trustee’s job will look quite different than if you were filing for Chapter 13. In a Chapter 7 case, the trustee would review all of your non-exempt assets to determine if any of it could be liquidated to raise money for your creditors. If so, the trustee would collect it, oversee the sale of the property and distribute the funds to the creditors. In many cases, though, there is nothing that can be sold, and you would lose nothing.
In a Chapter 13 filing, the trustee’s main responsibility centers on collecting your monthly payments and distributing the funds to your creditors. The trustee would also be responsible for pursuing appropriate action if you were to miss a payment or stop making payments altogether.
Beyond the responsibilities associated with repaying the creditors, trustees also work to ensure that everything about your case is done according to the law. Challenges over exempt and non-exempt property, investigations into potential fraud and other issues would all be handled through the trustee.
To learn more about our bankruptcy services, contact the Price Law Firm. From our offices in Altamonte Springs in the Orlando-Kissimmee metro area, we represent clients throughout central Florida. To schedule a free consultation with an attorney, call 407-834-0090.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.