The bankruptcy trustee has one of the most important roles in the success of a Chapter 7 bankruptcy. They take care of the details and make sure that all of the financial elements are above board and make sense.
The trustee is also responsible for moderating hearings between you and your creditors so that everyone is treated with respect and gets the information they need. The duties of the bankruptcy trustee are outlined in more detail below. For more information about Chapter 7 bankruptcy, click here (http://www.zerodownbankruptcy.com/Chapter-7/).
When you file bankruptcy, you not only submit all of the information concerning your debts, but your income as well. This is so the court can compare the two to determine whether you can reasonably pay your debts.
It is the job of the bankruptcy trustee to verify the information that you provide. For instance, if you say that you make $2,000 per month, the trustee will look at your pay stubs as well as any other means of income you have provided in order to verify that your $2,000 estimate is correct.
341(a) Meeting Moderation
Your creditors will have an opportunity to hear your side of the story and ask you questions about the details in order to clear up any confusion. For example, if your claim is that you couldn’t pay your bills because you were in a car accident in May, your creditors might wonder why you stopped paying on your account in February. They have a right to ask these questions. You must answer them under oath with the trustee as the moderator. Not all of your creditors will appear at this meeting, but if they do, the trustee helps to moderate. You can read more about bankruptcy here (http://www.zerodownbankruptcy.com/).
Assessing Transfers and Securities
The trustee does not just look at your bills and income. He or she will also examine all liens, securities, and payments made. If you have shown favor to one creditor by paying off that account and filing bankruptcy on the others, the trustee might reverse that payment and spread it out among all of your creditors instead.
If you have securities or liens that were not correctly applied, the trustee can remove those securities and liens so that you own the property outright. In some cases, it may then be sold to pay off your accounts, depending on whether the property is exempt or not.
Because bankruptcy can be a complicated and overwhelming matter, it’s important to understand each person’s role in the process. Our bankruptcy lawyers can ensure that you are aware of what to expect and that you follow the best path possible in getting out of debt.
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