Chapter 7 trustees only make real money if they find and disburse monies to creditors. In other words, Chapter 7 trustee can be honey badgers searching for money to disburse to creditors so they get paid more money!
Here are three things most Chapter 7 trustee search for in a Chapter 7 Bankruptcy filing.
First, are there any non-exempt assets in the case? Chapter 7 trustee’s love non-exempt assets because they take those non-exempt assets, liquidate them into cash, and use the cash to disburse to creditors. What is non-exempt assets? Anything bankruptcy lawyers cannot exempt under the applicable exemption scheme laid out in statutes is non-exempt.
Second, has debtor made “preferential payments” to creditors? Sometimes, Chapter 7 trustees are allowed to claw back payments made to creditors in Chapter 7 Bankruptcy. Trustees will want to know if you have paid certain dollar amounts to creditors within certain time frames. Again, if clawed back, they can use those monies to disburse to creditors.
Third, has debtor made in fraudulent transfers to anyone in certain time frames? Chapter 7 trustees are allowed to claw back or void certain transfers made by debtors within certain time frames if debtor received less than fair market value for the transfer.
When the time is right, or when you are ready, reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com. You will be so thankful you did.