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The Role of a Bankruptcy Trustee

May 17th, 2019 at 2:45 pm

Texas bankruptcy attorneyComing to the decision that your best option is to file for bankruptcy is not easy. You may have taken weeks, if not months to realize that your best option is bankruptcy. The bankruptcy process can be confusing because of all of the legalities and people involved with the process. When you file for bankruptcy, the United States Trustee Program will assign you a bankruptcy trustee who will be responsible for overseeing your case. The trustee is one of the most important people in your case, so it is crucial that you understand the role of the trustee and the impact the trustee can have on your case.

What Is a Bankruptcy Trustee?

The role of a trustee was created to prevent the creditors and courts from having to be the ones responsible for collecting and distributing the property of those who file for bankruptcy. Trustees are independent contractors who are not employees of the bankruptcy court, but they must answer to the court and cannot take any kind of action until the court approves it. The trustee will evaluate and make recommendations pertaining to the demands of different debtors involved in the specific bankruptcy case they are assigned to.

Role of the Bankruptcy Trustee

The role of a trustee differs based on the type of case they are assigned to. Most bankruptcy cases will be assigned a trustee, except for Chapter 11 reorganization plans and Chapter 9 municipality cases.

Chapter 7 Bankruptcy Trustees

In Chapter 7 bankruptcy, your trustee is responsible for a couple of different things. First, it is the trustee’s job to make sure your bankruptcy claim is legitimate and not fraudulent. Your trustee will also be the person who determines whether or not you have any non-exempt assets. If you do, the trustee will also manage the sale of your assets and oversee the distribution of the proceeds to your creditors.

Chapter 13 Bankruptcy Trustees

The role of a trustee in a Chapter 13 bankruptcy is slightly different because the types of bankruptcies differ from each other. A Chapter 13 bankruptcy deals with a repayment plan, which your trustee will be responsible for overseeing. Your trustee will be your liaison between you and your debtors, making sure you have an affordable repayment plan, collecting your payments and distributing them to your debtors.

Contact a Texas Bankruptcy Attorney Today

One of the many aspects of a bankruptcy is the trustee, which is a crucial piece to the puzzle. Your trustee will make sure you have a reasonable bankruptcy plan, but sometimes you also need extra help. If you are thinking about filing for bankruptcy, you should talk with an experienced Kerrville, TX bankruptcy attorney. At the Law Offices of Chance M. McGhee, we will help you determine whether or not bankruptcy is appropriate for your situation. Call our office today at 210-342-3400 to schedule a free consultation.

 

Sources:

https://www.creditkarma.com/advice/i/bankruptcy-trustee/

https://www.thebalance.com/who-is-a-bankruptcy-trustee-316199

https://www.investopedia.com/terms/b/bankruptcy-trustee.asp

Can Chapter 13 Bankruptcy Lead to a More Financially Stable Life?

October 15th, 2014 at 7:40 am

Chapter 13 bankruptcy Texas, San Antonio bankruptcy lawyerMany individuals and business owners wrongly attach a negative connotation to the word “bankruptcy.” While it is true that those who choose to file bankruptcy may be facing dire financial situations, the process should not be viewed as an inherently bad decision. Instead, debtors should view bankruptcy as an opportunity to develop a financial plan that leads to financial stability.

Though large companies are required by law to hire a bankruptcy attorney, individuals have the choice of filing alone. While there are standard laws in place for the bankruptcy process, every case is different. For this reason, it is often wise to hire an experienced bankruptcy lawyer to review the case and identify the best approach to filing.

Chapter 13 Bankruptcy Provides a Path to Financial Freedom

Chapter 13 bankruptcy differs from other chapters as it allows the debtor to restructure the debt they owe rather than liquidating assets. After submitting the initial petition to file for bankruptcy, the debtor, court, and trustee will develop a practical and comprehensive payment plan.

An important part of the bankruptcy process is what is referred to as “debtor education.” This is a special program that all applicants must attend. It not only covers some financial basics, but it also explores alternatives to bankruptcy, which may be helpful if the plan does not work out for the debtor.

While there are several reasons a person can end up with high amounts of debt, some debt is purely accidental and the result of not understanding how debt and credit work. Credit counseling and debtor education aim to remedy this issue.

The benefits of filing Chapter 13 bankruptcy extend beyond education. For example, according to the U.S. Courts website, filers may not face foreclosure of their homes.

If bankruptcy seems like a viable option for your financial situation, contact the Law Offices of Chance M. McGhee. As an experienced San Antonio, Texas bankruptcy attorney, Mr. McGhee has helped clients over the past 20 years regain control of their finances. Call our law firm today at 210-342-3400.

 

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