The main benefit of filing for bankruptcy is that it may get you out of a dire financial situation that you would not have been able to escape otherwise. However, one drawback may be that the process is not necessarily a private one. That is, there may be many individuals involved in your proceedings, one of them being a bankruptcy trustee. Read on to discover the role of a bankruptcy trustee and how a seasoned Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help you navigate your proceedings.
What is a bankruptcy trustee and what role do they play in my proceedings?
By definition, a bankruptcy trustee is an individual appointed by the United States Trustee to represent your estate in your bankruptcy proceedings. This individual works by the United States bankruptcy code and primarily executes any orders made by the bankruptcy judge.
Of note, a Chapter 7 trustee may get paid via the $60 administration fee and a commission on the assets distributed to your creditors. Contrastingly, a Chapter 13 trustee may receive payments as part of the repayment plan you established in your proceedings. All in all, this factor must be considered before you move any further with your bankruptcy petition.
What role does a trustee play in my proceedings?
Now, the role a trustee plays in your proceedings may be dependent on which type of bankruptcy you have opted for. For example, if you have filed for Chapter 7 bankruptcy, then your trustee may work to collect and control your non-exempt assets. Examples of such assets include your residential properties that are not your primary home; your vehicles that still carry equity; your valuable pieces of artwork or other collections; your investments held outside of your retirement accounts; and more. Further, they may liquidate such assets and distribute the proceeds to your creditors.
On the other hand, if you have filed for Chapter 13 bankruptcy, then your trustee may work to collect the fixed installments related to your established repayment plan. From here, they may distribute these payments to your creditors, along with suggesting adjustments to your payment amounts as they see fit.
Lastly, if you have filed for Chapter 11 business bankruptcy, then you may not necessarily have a trustee assigned to your proceedings. But if the court does appoint one, then they may work to handle your financial affairs and your property as you focus on your reorganization plan. What’s more, they may decide that a creditor’s committee is needed for the building of your reorganization plan.
At the end of the day, it is wise that you retain the services of a competent Rockland County bankruptcy attorney before you work with a bankruptcy trustee. So please call The Law Offices of Allen A. Kolber, Esq. at your earliest possible convenience.