When you file bankruptcy, a court-appointed trustee will be assigned to your case. This trustee will remain active in your case for the entire proceedings. The trustee is there to protect your creditor’s interest and make sure you are being fair and honest regarding your debt.
In Chapter 7 bankruptcy, your trustee will evaluate your property to determine if any non-exempt assets can be sold and the money distributed to your creditors. The trustee will not look at the original cost of the item, but what it could be sold for at the time of the bankruptcy. Often you will lose little to no property during bankruptcy due to the generous exemption laws.
The trustee has more to do in a Chapter 13 bankruptcy. In addition to evaluating your assets, the trustee will collect your monthly payments. You will pay one monthly payment to the trustee, and they will distribute the money to your creditors.
Proof of Claim
A creditor must file a proof of claim to the bankruptcy court to be included in your bankruptcy case and get paid. You or your trustee can object to a creditor’s claim. Trustees have no power to rule on disputes between you and your creditors.
Also known as the meeting of the creditors, the trustee will meet with you and ask you if you understand your rights and options, and if all of your financial information is correct. This meeting usually only takes between ten and thirty minutes in a casual environment. Your trustee can be friendly and helpful during your bankruptcy case.
If you would like more information about the role of the trustee in a bankruptcy case, or if you have overwhelming debt and would like some relief, contact a Dallas bankruptcy attorney today.