When you file Chapter 7 bankruptcy, you will be assigned a trustee to handle your estate. A trustee is a representative of the United States Department of Justice. The trustee is there to represent your creditors while also being fair to you and your financial situation. The appointed trustee will look over your bankruptcy paperwork and check for accuracy. They will ensure that all of your supporting documents are correct and filed with the courts.
Meeting of the Creditors
When you and your attorney go to the meeting of the creditors (also called the 341 meeting), your trustee will ask you some questions about your bankruptcy. They will ask about your finances and who you owe money to. They may ask you what led up to the bankruptcy, and if you understand how the bankruptcy process works.
The bankruptcy trustee will evaluate and liquidate any nonexempt assets from your estate. After the sale is made, the proceeds will be distributed to your creditors.
If your trustee suspects fraud in your bankruptcy case, they may file an adversary proceeding with the court. Fraud may include misrepresentation of your assets, false pretenses, or inappropriate transfers of property. If the trustee does locate improper property transfers, the trustee may file a motion to retrieve the proceeds of the sale and return it to your bankruptcy estate.
By hiring an experienced Dallas bankruptcy attorney, you will be prepared for any questions the trustee may ask. Having all of your paperwork correct and complete will make the bankruptcy process go smoothly and ultimately receive your discharge.