Duties of a Chapter 7 Trustee
A trustee is usually a lawyer who is appointed by the bankruptcy court at the time you file your bankruptcy petition. He is an impartial person who has a duty to the court to ensure that the bankruptcy petition was not filed to defraud creditors. He reports to the court and helps the court determine the facts of a bankruptcy case.
What are some of the duties of a Chapter 7 trustee?
1. When you file your bankruptcy petition, the trustee reviews all the documents you submit. At this point he wants to determine if your petition was correctly filed; that is, that a Chapter 7 petition is
the right remedy for you.
2. The trustee looks over the properties you listed and evaluates whether you were correct in claiming exemption for your properties. Contact a New York Bankruptcy Attorney for advice on which properties can be exempt from bankruptcy.
3.He will also look at any transfers of property you have made before you filed for bankruptcy to see if the transfers were made only to keep the properties from being taken and used to pay off your debts.
4. The trustee takes all of the non-exempt properties as part of the bankruptcy estate. This estate is the pool of properties and funds from which your creditors will be paid.
5. The trustee notifies all your creditors so that they may file proofs of their claims. He also meets with your creditors and before all of them, he will ask you questions about your income and
6. If he finds that there are assets such as debts owed by other people to you, the trustee will move to collect on those debts so that the money obtained can be used to pay your creditors.
7. If there are no properties that can be sold off, the trustee will declare that your petition is a ‘no asset’ case. He will report this finding to the bankruptcy court.
8. If there are properties that can be sold off, the trustee will sell those properties. He will hold and account for all the funds. He will then inform the court and distribute the funds to the creditors.
9. The trustee determines which among your creditors will be paid in accordance with the legal priority. He will also pay the creditors. When he has paid off all the creditors, the trustee will make a report to the bankruptcy court.
We at the Maxwell Law Firm PLLC, assist in client debt settlement,
foreclosure defense, tax collection defense, filing for Chapter 7 and
13 bankruptcy, and mortgage home loan modifications. Contact us and speak to our competent and experienced New York Bankruptcy Attorney so that you can get the debt relief you are seeking. Please give us a call at 718-701-0095 to discuss your options.