If you are looking into filing a bankruptcy, you’ve probably come across the term bankruptcy trustee during your research. The Bankruptcy Trustee is an important figure in the bankruptcy courts and plays a large role after a case has been filed. But who exactly is this person, and what role do they play in your case?
A bankruptcy trustee is a court-appointed official who helps oversee the bankruptcy process. Think of them as a middle-man between you, your creditors, and the court. Their main job is to make sure everything runs fairly and according to the law.
In a Chapter 7 case, the trustee reviews your paperwork, looks at your assets, and determines if there’s anything that can be sold (liquidated) to pay your creditors. In many cases, people don’t lose property because it’s protected by exemptions, but the trustee still has to check. They may also ask you questions at the meeting of creditors, known as the “341 meeting,” to confirm the accuracy of your information. These questions confirm things such as you are who the paperwork says you are, you have what the petition says you have, ect.
In a Chapter 13 case, the trustee plays a slightly different role. Instead of liquidating assets, they oversee your repayment plan. You’ll make regular payments to the trustee, who then distributes those funds to your creditors. The trustee also ensures your plan is feasible and follows bankruptcy rules. They will also confirm the accuracy of your information as they would in a Chapter 7 case.
It’s important to remember that the trustee does not represent you personally, nor do they represent your creditors. They are a neutral party tasked with making sure the case is handled correctly, fairly, efficiently and in compliance with bankruptcy law.
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While their job may sound intimidating, trustees are not out to punish you. Their role is to enforce the rules of the system. With the right guidance from our amazing attorneys here at LifeBack, you’ll know what to expect, how to prepare, and how to work with the trustee to move through the process smoothly. 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 happy you did.
