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What is a Bankruptcy Trustee?


Whether you file for Chapter 7 or Chapter 13 bankruptcy, the court or the Department of Justice’s (DOJ’s) U.S. Trustee Program will appoint a bankruptcy trustee to oversee your case, verify your forms and financial information, collect your assets, and impartially distribute your property or the proceeds from your assets to your creditors. When you receive your Form 309A, you will find out the name and contact information of your trustee.

Here’s a breakdown of how bankruptcy trustees work in different forms of bankruptcies.

Chapter 7 Bankruptcy

A trustee in a Chapter 7 bankruptcy oversees the administration of the “bankruptcy estate,” which is composed of all your property.

First, the trustee will review your bankruptcy forms, paycheck stubs, and tax returns to ensure that the information on the forms matches the information on your tax returns. He/she will also review your property to determine If you have any nonexempt assets and assets that could be protected by an exemption.

Next, the trustee will conduct the meeting with creditors. After the meeting, he/she will sell property that is not protected by an exemption and use the proceeds to pay creditors.

Chapter 13 Bankruptcy

A Chapter 13 trustee oversees your repayment plan. Since this type of bankruptcy does not involve the sale of your property, the trustee will ensure that your repayment plan meets the Bankruptcy Code, then act as a middleman between you and creditors you owe by collecting your payments and distributing the payments to your creditors.

In conclusion, a bankruptcy trustee plays an important role in your case, which is why you must fully cooperate with your trustee when answering questions and filing forms. Providing accurate and upfront information throughout the bankruptcy process can help develop a positive relationship with your trustee.

If you are interested in filing for bankruptcy in Fresno, contact Arnold Law Group, APC today at (559) 900-1263 for a confidential consultation. Do not hesitate to discuss your case with our legal team and learn about your available legal options.

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