The Dos and Do Nots of Choosing a Bankruptcy Trustee

 Posted on May 13, 2024 in 341 Meeting

When filing for bankruptcy, selecting the right trustee is important to ensure a smooth and successful process. A bankruptcy trustee is responsible for overseeing your case, managing your assets, and distributing funds to creditors. A Texas lawyer can help you understand the dos and do nots of choosing a bankruptcy trustee.

Do: Understand the Role of a Bankruptcy Trustee

A bankruptcy trustee is an impartial party appointed by the court to administer your bankruptcy case. Their primary duties include:

• Reviewing your bankruptcy petition and schedules
• Conducting the 341 meeting of creditors
• Investigating your financial affairs
• Liquidating non-exempt assets (in Chapter 7 cases)
• Distributing funds to creditors

Understanding the trustee’s role will help you through the steps of your bankruptcy process more effectively.

Do Not: Attempt to Influence or Bribe the Trustee

It is illegal and unethical to attempt to influence or bribe a bankruptcy trustee. Trustees are bound by strict ethical guidelines and must remain impartial throughout the proceedings. Engaging in such behavior can lead to serious consequences, including criminal charges and the dismissal of your bankruptcy case.

Do: Be Honest and Transparent

Honesty and transparency are essential when dealing with your bankruptcy trustee. Provide accurate and complete information about your financial situation, assets, and liabilities. Failing to disclose important information or lying to your trustee can result in the denial of your discharge, fines, or even imprisonment.

Do Not: Conceal Assets or Transfer Property

Under Texas law, concealing assets or transferring property to avoid surrendering them in bankruptcy is illegal. If you attempt to hide assets or engage in fraudulent transfers, your trustee has the power to recover the property and distribute it to your creditors. Such actions can also lead to criminal charges and the denial of your bankruptcy discharge.

Do: Cooperate with Your Trustee

Cooperate fully with your bankruptcy trustee throughout the process. Promptly respond to their requests for information or documentation, attend the 341 meeting of creditors, and follow their instructions. Your cooperation will demonstrate your commitment to the bankruptcy process and help ensure a smoother experience.

Do Not: Ignore the Trustee’s Requests or Miss Deadlines

Ignoring your trustee’s requests or missing important deadlines can jeopardize your bankruptcy case. Failure to provide requested information or attend mandatory meetings may lead to the dismissal of your case or the denial of your discharge. Stay organized and prioritize meeting all requirements set by your trustee and the court.

Do: Seek Guidance from a Qualified Bankruptcy Attorney

Going through the difficulties of bankruptcy law in Texas can be challenging. To ensure that you make informed decisions and protect your rights, seek guidance from a qualified bankruptcy attorney. An attorney can help you understand the role of a trustee, prepare your bankruptcy petition, and represent your interests throughout the process.

Contact a New Braunfels, TX Bankruptcy Attorney

Choosing the right bankruptcy trustee is essential for a successful bankruptcy case. By understanding the trustee’s role and working closely with a San Antonio, TX bankruptcy lawyer, you can set yourself up for a more successful outcome. Call Law Offices of Chance M. McGhee at 210-342-3400 today for a free consultation.