What Is a Bankruptcy Trustee?

What Is a Bankruptcy Trustee?

The bankruptcy Trustee is an attorney who oversees your entire bankruptcy case. When you file a Chapter 7 bankruptcy or Chapter 13 bankruptcy, the Trustee makes sure that everything you list on your forms is true and correct. Many people assume that the bankruptcy Trustee is there to make your life more difficult. This is not true. Although some Trustees may be nicer than others, a bankruptcy Trustee wants to make sure that you are being honest and following the rules. The Trustee is doing his or her job and must follow the law.

What is the United States Trustee’s Office?

The Bankruptcy Reform Act of 1978 established the U.S. Trustee Program and has been around for over 30 years. The U.S. Trustee’s Office oversees the bankruptcy Trustees and makes sure they are following their duties. The office also oversees all bankruptcy cases that are filed under the Bankruptcy Code. Simply put, the U.S. Trustee’s Office makes sure that bankruptcy laws are followed and bankruptcy fraud cases are pursued. 

Your bankruptcy lawyer may mention that to you that your case can be audited. This is why it is extremely important to be open and honest with your bankruptcy lawyer. The US Trustee’s office can randomly select cases they want to audit. The US Trustee’s office will randomly select one out of every 250 bankruptcy cases filed to be audited. If your bankruptcy case is chosen to be audited then a bankruptcy lawyer can help you get the documents you will need to provide to the US Trustee’s office. Typically, when a case gets audited the US Trustee’s office will ask for more information regarding certain financial transactions or history. Some things they may ask for are longer bank statements, titles to vehicles that you may have sold in the past, etc. A good bankruptcy lawyer will be able to handle your case if it gets audited. Many people are unfamiliar with what types of things the bankruptcy Court wants to know. Many people fail to understand that there is a look back period in New York and New Jersey. This means if you have given away anything within the lookback period or sold anything, the Trustee can go after you or the other person for the money. It is important to hire a bankruptcy lawyer who will ask the right questions to ensure that you really qualify for bankruptcy and won’t run into any issues. 

 What is a Chapter 7 Bankruptcy Trustee?

A Chapter 7 bankruptcy Trustee administers your Chapter 7 Bankruptcy Case. The Trustee is appointed by the Court to handle your bankruptcy. When you file your Chapter 7 bankruptcy, the Trustee will oversee your entire process. The Trustee is randomly selected. Sometimes, a bankruptcy lawyer may be able to find out additional information about who they think your Trustee may be depending on when your case is filed. In New York and New Jersey, there are numerous bankruptcy Trustee’s a good bankruptcy lawyer has probably appeared in front of these individuals numerous times and will be able to assist you when dealing with them. 

A Chapter 7 bankruptcy Trustee will review the bankruptcy forms you filed in your case to make sure that you were honest on your petition. The Trustee will ask you for supplemental information as proof that your petition is accurate. You will meet with the Trustee when you go to your hearing. A chapter 7  bankruptcy lawyer will prepare you for the questions that your Trustee will ask you at Court. They will also make sure all the paperwork you need to send to the Trustee is sent before your hearing. If the Chapter 7 bankruptcy Trustee believes you have committed bankruptcy fraud the Trustee can object to your discharge. Having a bankruptcy lawyer help you can make sure that the process goes smoothly and you get your discharge without any headaches. When you go to your Court hearing you will be placed under oath. Telling the truth is really important. 

Another important role of the Chapter 7 Trustee is to review all of your property and make sure you accurately exempted the property. If your Trustee finds that your property is not exempt then they can sell it, to pay off your creditors. A good bankruptcy lawyer will go through your exemptions to make sure this does not happen. 

What is a Chapter 13 Bankruptcy Trustee?

A Chapter 13 bankruptcy Trustee is similar to a Chapter 7 bankruptcy Trustee. The Chapter 13 bankruptcy Trustee will ask the same questions as the Chapter 7 bankruptcy Trustee but they may have more questions. In a Chapter 13 bankruptcy, you will need to show that bankruptcy Court that you can fund a Chapter 13 plan. The Chapter 13 Trustee, will review your plan and determine if it is feasible. The Chapter 13 Trustee, can also deny your plan if they don’t see that you will be able to repay it.  

Once you are ready to make the last payment to your Trustee, the U.S. Trustee’s Office approves the final report filed by the Chapter 13 Bankruptcy Trustee, the court will order your discharge and then close your case. 

Should I File Bankruptcy?

If you are overwhelmed with your debts and can’t make your monthly payments, filing for bankruptcy can be an option to get you back on your feet and on your way to a fresh start. Our bankruptcy lawyers can review your financial information to determine if bankruptcy is the right option for you or if there are any other available options to your specific needs. Karra L. Kingston Esq. has helped many people get a fresh start and put their debts behind them. We have eliminated people’s debt by helping them file bankruptcy in New Jersey and New York