Trustees are assigned by the United States Trustee Program in both Chapter 7 and Chapter 13 bankruptcy cases, and they play a critical role in your filing. Understanding their role and responsibilities can help you build a more cooperative relationship with your appointed trustee and facilitate an expedient, successful closure to your case.
Who is your bankruptcy trustee?
Trustees are private individuals supervised by the court and the U.S. Trustee Program. As such, your trustee is the impartial administrator of your bankruptcy case and the intermediary between you and your creditors during the filing process.
What are your trustee’s responsibilities?
Your assigned trustee has several responsibilities, some of which vary depending on the type of bankruptcy you’re filing. Initially, your trustee is responsible for reviewing your bankruptcy forms. She’s also charged with scrutinizing your financial information in order to verify the veracity of your bankruptcy claim. This helps to eliminate fraudulent bankruptcy cases from slipping through the system.
Once your case has been filed, your trustee conducts the 341 Meeting of Creditors, which is scheduled to take place between 21 and 40 days after your filing date. During the meeting, she will verify your personal information, and she will verify your financial information through a series of questions that you must answer under oath.
If you’re filing Chapter 7 bankruptcy…
Your trustee will determine if your nonexempt property can be converted to cash in order to cover your debts. She will then collect those nonexempt assets and sell them to repay your creditors with the proceeds. Under some circumstances, your trustee may also conclude that your case should be converted to a Chapter 13 bankruptcy.
If you’re filing Chapter 13 bankruptcy…
Your trustee will oversee your repayment plan to ensure that it is financially viable for you. She will also collect your monthly payments as dictated by the plan and distribute the proceeds to your creditors.
Why a positive working relationship with your trustee is important
Your trustee plays a significant role in the success of your bankruptcy filing, including making determinations about the integrity of your case and whether it should be dismissed. As an impartial participant, it’s her job to make sure the process goes smoothly from start to finish. You’ll be working closely with your trustee, and as the name would suggest, it’s critical that your working relationship is built on trust. Be completely honest with your trustee and cooperate in full to make sure she has all of the information she needs to achieve the results that you’re hoping for when you decide to file bankruptcy.
Contact the Law Offices of Jeffrey Lohman to determine the best course if you’re facing bankruptcy.
The Law Offices of Jeffrey Lohman, P.C. is considered a debt relief agency pursuant to federal law. We are attorneys who help people file for bankruptcy relief under the Bankruptcy Code.