The Role of the Bankruptcy Trustee in Chapter 7[email protected]2022-11-17T12:56:55+00:00
Bankruptcy Attorney in Royal Oak, Michigan
Because of the impending financial catastrophe, you may want to consider filing for Chapter 7 bankruptcy. If you live in Michigan, you may be one of the individuals who seek legal assistance, which is totally normal. Chapter 7 Bankruptcy can help you wipe out certain debts such as credit card and medical bills, or simply become debt-free.
The first thing you should do is look for an efficient Bankruptcy attorney in Michigan. The rules of the Bankruptcy Code are naturally complicated, and you will need the assistance of an expert bankruptcy lawyer to save time and effort.
Hammerschmidt Stickradt & Associates is a highly skilled law firm in Michigan. With our extensive experience of more than 15 years of handling different cases, we are committed to providing you with the best results. If you want to talk about your case, you can start a free consultation.
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How would you like to wake up not worrying about your creditors or loan balances? Our Michigan Bankruptcy Attorneys can help you attain new financial freedom! Worried about the cost? We offer payment plans for all budgets and a free credit rebuilding program!
Creditors are characterized in Chapter 7 Bankruptcy as someone who owes money to the debtors. When a debtor files for bankruptcy, the bankruptcy system appoints a bankruptcy trustee to oversee and supervise the bankruptcy case. The Trustee is chosen randomly from among the eligible Trustees to preside over the Meeting of Creditors.
The primary function of a Chapter 7 Trustee is to examine your financial activities, critique you under oath, and decide whether you have any assets that are not protected by Bankruptcy laws exemptions. If this is the case, you will be advised to liquidate such properties and assets in order to pay your creditors.
When filing for Chapter 7 bankruptcy, it is paramount to understand the nature of the Chapter 7 Trustee’s role. Keep in mind that the Trustee is not there to protect your interests, but rather the interests of the creditors. The Debtor-Creditor law is contentious by nature; each side has its own interest in the outcome of the case.
You should be aware that in Bankruptcy proceedings, Trustees are on the opposing side, and so they are your adversaries. Therefore, it is worthy to note that there are excellent Trustees that could effectively defend the creditor’s interest. Thus, getting help from a competent lawyer is a must if you are filing for Chapter 7 Bankruptcy
What Is The Role Of A Chapter 7 Bankruptcy Trustee in Michigan?
A Chapter 7 bankruptcy trustee in Michigan examines and verifies the debtor’s identity and bankruptcy documents. As previously stated, one of the major responsibilities of a Trustee is to vend everything that the debtor does not qualify for under bankruptcy law exemptions. Thus, the Trustee’s primary goal is to inspect and analyze the properties you assert were exempted. Some individuals mistakenly assume that the Trustee’s responsibility is to assist the debtor throughout the process.
In reality, Trustees are your rivals; they are there to safeguard the interests of creditors rather than the debtors. The best approach to properly grasp the Trustee’s role is to understand how he or she gets compensated.
Chapter 7 Trustee Compensation
In general, Chapter 7 Trustees are paid around $65 each case to basic assess the petition. Trustees might occasionally earn significantly more. The bankruptcy court pays them a commission on cash allocated to creditors. The cash might come from nonexempt sources such as nonexempt property liquidated by the trustee, the debtor’s bank account, or the fund to which the debtor has agreed to pay. The trustee receives around 25% commission on the first $5,000, about 10% commission on amounts between $5,000 and approximately $50,000, and a 5% bonus on amounts beyond $1,000,000.
Reviews the petition for Bankruptcy
Under Bankruptcy law, if your bankruptcy documents exempt all the properties, it is called “no-asset.” Meaning to say, creditors will not receive anything. A bankruptcy notice will be transmitted to the creditors to inform them that they no longer need to file proof of claim since they will not receive any money. However, they will also be illuminated that everything is still subject to change.
The Trustee is ordered under the administration and authority of the U.S. Trustee to assess and review your bankruptcy documents to ensure the accuracy and detect possible abuses and fraud practices of the bankruptcy procedure. The Trustee will painstakingly examine everything and hunt for evidence in your records that may lead them to suspect you are intentionally confusing the assets.
Take note that the trustee will no longer show more interest after discovering any. When there is no property for the trustee to take, there will be no incentives and commissions given to them.
Conducts 341 Creditors Meeting
If you don’t like your bankruptcy case to be dismissed, you need to attend the 341 Creditors meeting with the Trustee. In this meeting, the Trustee will validate your identification, ask compulsory 341 questions, and entertain questions from the creditors. Normally, if the Trustee finds out that all your assets are exempted, they will finish the meeting immediately. You will just finish your debtor training and wait for the debt to be discharged.
Suppose you are unable to answer all of the creditors’ questions. In that case, the Trustee will propose to meet on another day and request that you supply the necessary documentation for the time being. It is also rare for the Trustee to employ a lawyer to go after nonexempt assets you appear to be entitled to, or report the documents to the U.S. Trustee. If he feels it truly represents fraudulent conduct, he should contact the Trustee’s office for further action.
Seizes Nonexempt Assets
If the Trustee discovers that there are nonexempt assets and seizes them, you must comply. You can, however, repurchase the assets from them at a negotiated price or replace exempt assets with nonexempt ones.
Provides Assistance Arrearage Notices
If you owe back child support, the Trustee can also help you with that. The Trustee should notify the bearer of that support, and the state Child Support Agency may also assist them in locating you after your bankruptcy release. The Trustee will specifically tell the payee of certain rights under bankruptcy law. The Trustee will also notify the mentioned agency of the discharge, back support, the debtor’s location and employer data, and the name of the creditor who maintains an unpayable or reasserted claim.
Call our Bankruptcy Attorney Now!
It is crucial to acknowledge that good Trustees pose a threat to your interests. Trustees, as previously stated, are appointed to preserve the interests of creditors, not debtors. If you are filing for Chapter 7 Bankruptcy, you will need the services of a highly skilled bankruptcy attorney. You should select a law firm that is reputable, knowledgeable, and specializes in bankruptcy.
Hammerschmidt Stickradt & Associates is one of the experts in Michigan when it comes to Chapter 7 Bankruptcy. Our more than 15 years of experience addressing and resolving complex matters sets us apart from the rest. In addition to Chapter 7 and Chapter 13 bankruptcy, we also handle automatic stays, cases against abusive creditors, stop foreclosure, and income garnishment. If you or someone you know requires assistance with any of these issues, schedule a free consultation now!