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 Los Angeles, you need to consult with an
attorney who understands California bankruptcy laws. Not all bankruptcy
attorneys are the same. While the process appears complicated, a Los
Angeles bankruptcy attorney will be able to help you understand your
options and avoid making bad decisions. You get one chance to file
bankruptcy right the first time. The attorneys at Borowitz & Clark
know what they’re doing, because bankruptcy is all they do. Unlike many
firms, they never leave a paralegal or secretary in charge of a case.
That’s why their cases succeed at such a high rate