The Trustee's Role in Your Bankruptcy
A bankruptcy trustee is appointed by the U.S. Trustee Program, which is a branch of the Department of Justice. The trustee in your bankruptcy is not actually a government employee; rather, he is appointed to oversee your bankruptcy and make sure that everything is in order. While this is the case, the trustee can make objections to exemptions you claim, so it is important that you have a College Station bankruptcy attorney in your corner who will fight for your interests.
The Trustee's Role
The trustee is a representative of the court. As such, he has the responsibility to examine all the documents filed by the debtor. The trustee also verifies whether or not the debtor qualifies for the type of bankruptcy being sought, and determines whether the claims of the creditors are valid. The trustee does not represent you, nor does he work for the benefit of the creditors. Rather, his purpose is to protect the bankruptcy system itself.
Chapter 7 and Chapter 13 Bankruptcies
The specific duties of the trustee depend upon which type of bankruptcy you file:
- Chapter 7: In a total liquidation bankruptcy, the trustee must first determine whether or not you qualify. He then will determine which of your assets are exempt from liquidation. You can expect that some of your assets may be sold off as partial payment of your debts. The trustee will take possession of these assets and oversee their sale. He will also conduct the 341 (a) meeting of creditors and ask you questions pertinent to the documents you submitted. Remember that you are under oath during this process.
- Chapter 13: In a debt reorganization bankruptcy, the trustee will act as mediator while your debt repayment plan is drafted. If the court approves your plan, you will make your monthly payments directly to the trustee, who will in turn distribute them to the creditors per your repayment plan.
Hire an Attorney to Help with Your Bankruptcy
Bankruptcy is a very complicated process, and it is easy to make mistakes that can prove costly. A College Station bankruptcy lawyer can help you avoid errors that can lead to a dismissal of your case. Call Peterson Law Group today at 979-703-7014 or 936-337-4681.