You likely want your bankruptcy declaration to be as private as possible, with little to no outside involvement, as understandably so. With that, you may only want your attorney to know the details of your financial state and the status of your ongoing case. However, you may be unable to avoid the inevitable intervention of a bankruptcy trustee. Please follow along to find out the role of a bankruptcy trustee and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C. can help you prepare for your future relationship dynamic with one.
What is the role of a bankruptcy trustee in my case?
Of note, you may have to work with a bankruptcy trustee regardless of whether you file for Chapter 7 or Chapter 13 consumer bankruptcy. As far as Chapter 7 bankruptcy goes, your trustee is supposed to take control of all the nonexempt assets that now belong to the bankruptcy estate. Examples of nonexempt property may include your additional real estate properties that are not your primary residence; your second car or subsequent vehicles; your cash and investments not part of your retirement accounts; your luxury items; and more. It is worth mentioning that your trustee may even track down your recently transferred property and bring it back to your bankruptcy estate. Well, with this newfound control, your trustee is then charged with selling these properties as they see fit. Ultimately, they may use the funds from these sales to pay back your outstanding creditors.
As for a Chapter 13 bankruptcy case, your trustee is ordered by the court to collect the payments part of your three- to five-year repayment plan. Overall, they must monitor whether you are fulfilling your end of the bargain, so to speak. And if you are not, they are supposed to report it to the court, which may ultimately decide to dismiss your case entirely. Contrastingly, if they believe you are exceeding expectations and able to pay back more and at a higher rate, they may ask the court to modify your currently-standing repayment plan.
Am I required to have a bankruptcy trustee serve in my case?
There is no way around having a bankruptcy trustee as part of your Chapter 7 or Chapter 13 consumer bankruptcy proceedings. The United States Trustee program, part of the Department of Justice, may assign an individual to this role after you submit your bankruptcy petition. And no, you cannot appoint a trustee on your own. On top of this, you may be required to pay your trustee for their services. For Chapter 7, this fee is usually between three to 25 percent and is given through the property liquidation phase. Then, for Chapter 13, this fee cannot exceed five percent of your total repayment amount and is included in your scheduled payments.
If you need legal advice urgently, please do not miss another opportunity to schedule an initial consultation with a talented Rockland County bankruptcy attorney from The Law Offices of Allen A. Kolber, Esq., P.C. Contact our firm today.
