Facing Bankruptcy ? Contact Walker & Walker Law Office Today

In the simplest and most direct terms, the Bankruptcy trustee is an attorney (or sometimes non-legal financial official) that is appointed by the court to oversee and aid in your case.  The trustee is not a judge, and you normally do not meet with them in a courtroom.

However, it is important to remember that your Bankruptcy Trustee is not your bankruptcy lawyer. However, they are not actively working against you either.

They are merely there to oversee the bankruptcy process is followed through outside of a courtroom.

A Bankruptcy Trustee’s Role

The role of a bankruptcy trustee will vary slightly depending on the chapter of bankruptcy you are filing.

In Chapter 7 bankruptcy, the trustee is charged with overseeing the process of selling off non-exempt assets from your bankruptcy estate to pay your creditors. In this type of bankruptcy, you and your bankruptcy lawyer will compile a list of all your assets and make exemption claims. You will then meet with the bankruptcy trustee at a 341 meeting of creditors.

The trustee is responsible for going over all the financial compilations provided, approving exemptions, and verifying the accuracy of the information you provided to them. They will make sure everything is documented and prepared properly for an accurate bankruptcy case to be carried out.

In Chapter 13 bankruptcy, the bankruptcy trustee is more involved in the process. Again, you and your bankruptcy lawyer will compile your assets in addition to a repayment plan and then meet with the trustee in the 341 meeting of creditors.

This time, however, they will not liquidate assets, but rather look over a proposed repayment plan, make revisions to it, and finally approve it. This trustee will then collect payments on a regular basis to make sure your creditors are repaid.

The Trustee is Not Your Enemy

In many legal cases, it is often suggested that the attorney working for the court is the “enemy,” like when a prosecutor works to present evidence to convict a criminal. While the bankruptcy trustee is not your bankruptcy lawyer that will help you with filing, it is better to think of them as more of a neutral referee than someone actively working against you.

Your bankruptcy lawyer is solely your advocated, but the bankruptcy trustee is someone who is charged with making sure you are following the law and that the bankruptcy plan is carried out.

One of the most important rules is to always act honestly with your bankruptcy trustee. Believe it or not, they can help you by being fair and impartial if you provide an honest presentation of your financial situation.

Unfortunately, if you do attempt to hide assets, the bankruptcy trustee, if they discover this, will have little choice but to dismiss the bankruptcy case. This leaves you at the full mercy of your creditors. Furthermore, if you were malicious enough, there may even be criminal charges that follow.

However, there is a world of difference between just forgetting about something and actively trying to hide it. If you are honest with the trustee, they can be quite understanding in this sort situation if you are up-front with them about it.

Need Help? Contact Our Bankruptcy Attorneys

The appointment of a bankruptcy trustee is just one of the many new terms that will come from filing bankruptcy. However, while the bankruptcy trustee is not your enemy, it will be the bankruptcy lawyer that you hire who will help explain and walk you through every step of the process.

If you have a seemingly insurmountable amount of debt and are considering bankruptcy as an option, contact us today. The Walker & Walker Law Office can help you get started changing your financial future through bankruptcy, making sure you fully understand every step of the process.

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