The Role Of A Trustee In A Chapter 7 Bankruptcy Case
The Chapter 7 bankruptcy process does not typically take longer than six months from start to finish. Many people prefer this branch because it goes so quickly, but people also like it because it offers a lot of advantages over other branches. If you decide to use this branch, the court will choose a trustee to manage your case. If you are not sure what a trustee is or what his or her role is, here is the information you should know before you head into a Chapter 7 case.
The Trustee Works for the Court
Bankruptcy trustees are people who work for the court. They typically have degrees in law, and they know bankruptcy law like the back of their hand. The bankruptcy court has judges, too, but you probably will not have to see a judge in a Chapter 7 case. Instead, the court appoints a trustee to manage your case, and this is the person you go to with questions. You probably will never go directly to the trustee. Your lawyer will, though, if he or she has questions.
The Trustee Reviews the Accuracy of Your Documents
Once assigned to a case, the trustee begins working on it. One step involves reviewing the accuracy of the information you provide on the bankruptcy documents. The trustee will evaluate every answer you wrote on the forms. He or she will research your debts, assets, and finances. If there is a discrepancy or if the trustee needs more information, he or she will notify your attorney.
The Trustee Ensures That You Meet the Guidelines for Chapter 7
Next, the trustee will evaluate your information to ensure that you meet the guidelines for using Chapter 7. For example, is this your second bankruptcy case? If so, the trustee will make sure you waited long enough to file. He or she will also verify that you completed your credit counseling courses.
The Trustee Manages Your Bankruptcy Estate
The other role the trustee plays is managing your bankruptcy estate. If necessary, the trustee will take assets you have in your possession. He or she will sell them and use the proceeds to repay your debts.
The trustee has the power to dismiss your case if necessary or to provide you with an approval and discharge of your case. To learn more about this aspect of bankruptcy law, talk to chapter 7 bankruptcy lawyer today.