{"id":3225,"date":"2021-05-28T12:16:52","date_gmt":"2021-05-28T12:16:52","guid":{"rendered":"https:\/\/hsapclaw.com\/?p=3225"},"modified":"2023-04-28T17:36:39","modified_gmt":"2023-04-28T17:36:39","slug":"the-duties-of-a-trustee-in-bankruptcy-chapter-7","status":"publish","type":"post","link":"https:\/\/hsapclaw.com\/the-duties-of-a-trustee-in-bankruptcy-chapter-7\/","title":{"rendered":"The Duties of a Trustee in Bankruptcy Chapter 7"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you are planning to file for bankruptcy, there are several things that you should know. There are different types of bankruptcy afforded by the bankruptcy code, each for a specific circumstance. You begin the bankruptcy proceeding when you file your bankruptcy petition.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you decide on which <a href=\"\/chapter-7-bankruptcy-exemptions\/\">bankruptcy chapter<\/a> is the right choice for you, you should take into consideration the type of debt that you owe. Keep in mind that not all types of debt are dischargeable. Dischargeable debts include credit card bills and medical bills. On the other hand, debts that are not dischargeable include child support, alimony, and secured debt.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The bankruptcy court assigns a trustee to manage the bankruptcy case. When debtors file for <\/span><a href=\"https:\/\/hsapclaw.com\/chapter-7-bankruptcy\/\"><span style=\"font-weight: 400;\">bankruptcy Chapter 7 <\/span><\/a><span style=\"font-weight: 400;\">(or liquidation bankruptcy), the responsibilities of the bankruptcy trustee include examining the paperwork for the petition in bankruptcy, checking supporting documents submitted by filers, and selling assets to pay off certain debts. To prevent any legal issues during the bankruptcy process, it is important to seek legal advice from <a href=\"https:\/\/hsapclaw.com\/wyandotte-bankruptcy-attorneys\/\">reliable Wyandotte bankruptcy attorneys<\/a>.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_the_roles_of_a_bankruptcy_trustee\"><\/span><span style=\"font-weight: 400;\">Understanding the roles of a bankruptcy trustee<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6629f58214aeb\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6629f58214aeb\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/hsapclaw.com\/the-duties-of-a-trustee-in-bankruptcy-chapter-7\/#Understanding_the_roles_of_a_bankruptcy_trustee\" title=\"Understanding the roles of a bankruptcy trustee\">Understanding the roles of a bankruptcy trustee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/hsapclaw.com\/the-duties-of-a-trustee-in-bankruptcy-chapter-7\/#Evaluating_the_petition_for_bankruptcy\" title=\"Evaluating the petition for bankruptcy\">Evaluating the petition for bankruptcy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/hsapclaw.com\/the-duties-of-a-trustee-in-bankruptcy-chapter-7\/#Assessing_the_debtor\" title=\"Assessing the debtor\">Assessing the debtor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/hsapclaw.com\/the-duties-of-a-trustee-in-bankruptcy-chapter-7\/#Managing_property_sales\" title=\"Managing property sales\">Managing property sales<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/hsapclaw.com\/the-duties-of-a-trustee-in-bankruptcy-chapter-7\/#Preventing_security_interests_or_preferential_transfers\" title=\"Preventing security interests or preferential transfers\">Preventing security interests or preferential transfers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/hsapclaw.com\/the-duties-of-a-trustee-in-bankruptcy-chapter-7\/#Consult_with_Wyandotte_bankruptcy_attorneys\" title=\"Consult with Wyandotte bankruptcy attorneys\">Consult with Wyandotte bankruptcy attorneys<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\"><br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-3227 size-medium\" title=\"Bankruptcy Chapter 7\" src=\"https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/05\/Bankruptcy-Chapter-7-300x300.jpg\" alt=\"Bankruptcy Chapter 7\" width=\"300\" height=\"300\" srcset=\"https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/05\/Bankruptcy-Chapter-7-66x66.jpg 66w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/05\/Bankruptcy-Chapter-7-150x150.jpg 150w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/05\/Bankruptcy-Chapter-7-200x200.jpg 200w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/05\/Bankruptcy-Chapter-7-300x300.jpg 300w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/05\/Bankruptcy-Chapter-7-400x400.jpg 400w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/05\/Bankruptcy-Chapter-7-600x600.jpg 600w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/05\/Bankruptcy-Chapter-7.jpg 626w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>The bankruptcy trustee is paid a nominal fee for reviewing your bankruptcy filing documents, as well as a share of any properties sold. This payment arrangement incentivizes the bankruptcy trustee to thoroughly examine the debtor\u2019s assets, including any sold or transferred property, before filing a bankruptcy petition.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even though the trustee in bankruptcy must be fair to the debtors, their interests are not always in sync. As a result, the extent to which the trustee will assist you will be determined by the bankruptcy trustee in question.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In filing Chapter 7 bankruptcy, the main responsibilities of a trustee are as follows:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Evaluating the filing of a bankruptcy petition<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Assessing the debtor<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Managing property sales<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Preventing security interests or preferential transfers<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Evaluating_the_petition_for_bankruptcy\"><\/span><span style=\"font-weight: 400;\">Evaluating the petition for bankruptcy<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><a class=\"linkilo_keyword_link  hyperlinks\" href=\"\/should-i-file-for-bankruptcy\/\"  rel=\"dofollow\" title=\"Bankruptcy filing\" data-linkilo-keyword-link=\"linked\">Bankruptcy filing<\/a> includes filling out a bankruptcy petition as well as other bankruptcy forms and paperwork. When <a href=\"https:\/\/hsapclaw.com\/bankruptcy-attorneys\/\">filing for bankruptcy<\/a>, you need to provide financial information regarding your debts, assets, monthly income, and the condition of your finances. Also, you probably have to submit the trustee certain documents that validate the details you provided in your paperwork, such as tax returns and pay stubs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here, the main duty of a trustee is to look over your petition in bankruptcy and double-check the details and calculations within your financial documents and other third-party sources.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Assessing_the_debtor\"><\/span><span style=\"font-weight: 400;\">Assessing the debtor<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The trustee must arrange a <a class=\"linkilo_keyword_link  hyperlinks\" href=\"\/the-meeting-of-creditors\/\"  rel=\"dofollow\" title=\"meeting of creditors\" data-linkilo-keyword-link=\"linked\">meeting of creditors<\/a> and ask you questions about the documents you provided while you are under oath. You are required to attend the creditors\u2019 meeting about a month after you <a class=\"linkilo_keyword_link  hyperlinks\" href=\"\/how-often-file-bankruptcy\/\"  rel=\"dofollow\" title=\"file bankruptcy\" data-linkilo-keyword-link=\"linked\">file bankruptcy<\/a>. Even though creditors may question you during the hearing, they rarely appear in these hearings. That is unless they believe you are concealing assets.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Managing_property_sales\"><\/span><span style=\"font-weight: 400;\">Managing property sales<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The trustee is also in charge of selling assets that the debtor is unable to keep. This includes allocating these proceeds to creditors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In bankruptcy Chapter 7, you may exempt a certain amount of your assets such as household furnishings and qualified retirement plans. The assets you may protect will be determined by the exemption statutes in your state.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, if you own a nonexempt asset, the bankruptcy trustee will sell whatever is beyond the value allowed in your state. Before you consider filing bankruptcy, you should figure out first what will happen to your properties. Experienced <\/span><a href=\"https:\/\/hsapclaw.com\/\"><span style=\"font-weight: 400;\">Wyandotte bankruptcy attorneys<\/span><\/a><span style=\"font-weight: 400;\"> will help you understand bankruptcy laws that cover these exemptions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keep in mind that you do not have an automatic right to have your bankruptcy case dismissed and the bankruptcy judge would not do so simply because you were unaware that the bankruptcy trustee will sell your asset.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you do not own any nonexempt asset, the trustee will make a report indicating that your bankruptcy case is a \u201cno-asset\u201d case, where no distribution to creditors will be made. Otherwise, you and your <a class=\"linkilo_keyword_link  hyperlinks\" href=\"\/federal-bankruptcy-exemption\/\"  rel=\"dofollow\" title=\"bankruptcy lawyer\" data-linkilo-keyword-link=\"linked\">bankruptcy lawyer<\/a> will arrange with the bankruptcy trustee to turn over any property.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Preventing_security_interests_or_preferential_transfers\"><\/span><span style=\"font-weight: 400;\">Preventing security interests or preferential transfers<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Trustees can also prevent security interests or preferential transfers that have been improperly executed. Before filing a bankruptcy petition, if you transferred an asset to someone or paid off creditors you prefer over others, the bankruptcy trustee may be able to prevent these and get the asset or money back to distribute to other creditors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the creditor did not properly establish a lien on your security interest, the trustee in bankruptcy may prevent it and sell the asset free of the lien. However, this does not usually happen. It is most likely to happen only if the creditor is a family member or someone unable to record the lien.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Consult_with_Wyandotte_bankruptcy_attorneys\"><\/span><span style=\"font-weight: 400;\">Consult with Wyandotte bankruptcy attorneys<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It is not easy to deal with debt and financial problems on your own. Bankruptcy filings help you have a fresh start with your finances. This is why having an expert to assist you on how to file and during the bankruptcy procedure is important. <\/span><a href=\"https:\/\/hsapclaw.com\/contact\/\"><span style=\"font-weight: 400;\">Contact our Wyandotte bankruptcy attorneys<\/span><\/a><span style=\"font-weight: 400;\"> at Hammerschmidt Stickradt &amp; Associates for a free consultation.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you are planning to file for bankruptcy, there are several things that you should know. There are different types of bankruptcy afforded by the [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":3226,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/posts\/3225"}],"collection":[{"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/comments?post=3225"}],"version-history":[{"count":9,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/posts\/3225\/revisions"}],"predecessor-version":[{"id":4231,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/posts\/3225\/revisions\/4231"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/media\/3226"}],"wp:attachment":[{"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/media?parent=3225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/categories?post=3225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/tags?post=3225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}