What Is The Role of A Bankruptcy Trustee?

Consult With A Lake Station Bankruptcy Attorney

If you are going through a bankruptcy, regardless of whether it is Chapter 7 or Chapter 13, you will most likely have to work with a bankruptcy trustee at some point during your bankruptcy proceeding. A bankruptcy trustee is someone who is different than your bankruptcy lawyer and the bankruptcy trustee serves a different function than your bankruptcy lawyer. A bankruptcy trustee is someone who is appointed by the bankruptcy court to oversee and administer particular aspect of your bankruptcy case. This individual is entrusted to manage the “bankruptcy estate” that is created for you upon the filing of your bankruptcy paperwork.

Your bankruptcy estate is created the moment that you file for bankruptcy, and it contains all of your property, except for property that has been exempt. There are a few items of personal property that can be exempt, or protected, from bankruptcy proceedings, and these are referred to as bankruptcy exemptions. A few examples include an exemption for your personal home or your personal vehicle.

Your bankruptcy estate is a legally separate entity from you personally. Because your property has been legally separated from you personally as part of your bankruptcy proceeding, someone needs to be entrusted to oversee your bankruptcy estate, and that person is the bankruptcy trustee.

What Sort of Responsibilities Does the Bankruptcy Trustee Have?

The bankruptcy trustee has a lot of responsibilities. For instance, a number of things need to be done with the property in your bankruptcy estate as required by bankruptcy law, and the bankruptcy trustee makes sure that these various legal duties are properly and timely performed. The bankruptcy trustees duties vary from bankruptcy case the bankruptcy case.

For example, in a Chapter 7 bankruptcy proceeding, which is commonly referred to as a liquidation bankruptcy, the assets in your bankruptcy estate will need to be sold in order to repay your creditors. Some of the responsibilities the bankruptcy trustee have include:

• Identifying and collection all of your property and putting it into the bankruptcy estate and being held accountable for the property in the bankruptcy estate.
• Investigating your financial situation.
• Selling, also referred to as liquidating, the property in the bankruptcy estate.
• Canceling transactions that unfairly favor one creditor over another, or transfer property for the purpose of hiding it from the bankruptcy proceeding.
• Sending notifications concerning any domestic support obligations that you may have (for example, child support payments or spousal support payments)
• Holding your meeting of your creditors, where your creditors can learn more about your financial situation.
• Reviewing proof of creditors’ claims.
• Paying out your creditors that hold valid debt claims against you.
• Challenging creditors’ claims when they are not legitimate.
• Objecting to a bankruptcy discharge of your debts, if appropriate.
• Closing the bankruptcy estate as quickly as possible so your bankruptcy case can be resolved sooner rather than later.

Get In Touch With A Michigan Bankruptcy Attorney Today

Bankruptcy can be a complicated process, and that is why the court assigns to you a bankruptcy trustee. Your bankruptcy trustee is someone who helps you through your bankruptcy proceeding in addition to your bankruptcy lawyer. Your bankruptcy trustee play a critical role in the quick resolution of your bankruptcy case. A Michigan bankruptcy lawyer at Whitten & Whitten can help you navigate the bankruptcy court and process.