Bankruptcy trustees can have a big impact on the outcome of a bankruptcy case.
They play an integral role in the bankruptcy process and have been part of the process for well over 100 years.
Most bankruptcy filers have never heard of a trustee prior to beginning the bankruptcy process.
However, there is no need to feel intimidation at the prospect of wondering, “What is the role of a bankruptcy trustee?”
Below we have compiled a short guide outlining all you need to know.
A bankruptcy trustee is an entity, usually an independent contractor, who is appointed to oversee your bankruptcy case.
They act as an administrator, reviewing all financial documents and ultimately making a recommendation to the courts as to whether or not your bankruptcy case should be dismissed.
In short, they are there to ensure you provide accurate information and to make unbiased decisions about your bankruptcy case.
Trustees are assigned by the United States Trustee Program, which is under the Department of Justice.
They are overseen by both the court and U.S. trustee officers.
Trustees get a small fee for each case they take on. However, they usually receive a commission on any assets obtained from the debtor.
Because chapter 7 bankruptcies are more common than chapter 11 or chapter 13, there are generally more bankruptcy trustees needed for chapter 7 cases.
It is essential to have a cooperative relationship with your bankruptcy trustee. They are the administrator of your case, and have the ability to influence its outcome.
A trustee reviews your bankruptcy petition and all the submitted paperwork. Likewise, they make sure that it meets all the requirements of a proper bankruptcy filing.
They verify all financial information to prevent fraudulent claims, and also facilitate 341 meetings.
For many clients facing bankruptcy, they often feel intimidated at the prospect of working with a bankruptcy trustee.
It is important to realize that it is possible to have a great and cooperative relationship with them. They will help facilitate the expedient discharge of your bankruptcy case.
At Parker & DuFresne, we specialize in bankruptcy law.
Through a thorough consultation, our attorneys will help you determine if bankruptcy is the right solution for you.
We pride ourselves on giving our clients the resources and information they need for a successful working relationship with their trustee, and would be happy to provide the legal assistance you need to get on the road to financial stability.
Contact our offices today for more information!
Parker and DuFresne