Role Of The Trustee
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Role of the Trustee
If you are planning to file for Chapter 7 or Chapter 13 bankruptcy, you likely have many questions about the process, including the role of the trustee in your bankruptcy. The trustee plays a major role in any bankruptcy case and is assigned to handle the case to completion. Bankruptcy trustees are private contractors, not government officials, who are hired by the Department of Justice to perform many functions, depending on the type of bankruptcy you file.
The Trustee in Chapter 7 Bankruptcy
In a Chapter 7 bankruptcy case, the trustee primarily works to liquidate assets that are non-exempt under Nevada law and distribute the money to creditors. To do this, the trustee will determine the value of any non-exempt assets or prepare a report stating there will be no distribution to creditors if you do not have non-exempt assets.
The trustee also performs other tasks:
- Review the bankruptcy petition and documents, verify your information, and perform calculations to ensure everything is accurate.
- Examine you under oath. About 30 days after you file for bankruptcy, you will attend a hearing in front of the trustee. This 341 meeting of creditors also gives creditors an opportunity to ask you questions, if they chose. Creditors rarely attend these hearings, however. The trustee will ask questions under oath about the information in your documents.
- Avoid preferential transfers and incorrectly executed security interests. The trustee will also ensure that you did not transfer property to anyone or pay back certain creditors you prefer over others (like friends or family members) before you filed. If so, the trustee may have the right to undo these transactions, get the money back, and distribute it accordingly to creditors.
The Trustee in Chapter 13 Bankruptcy
In Chapter 13 bankruptcy, the trustee is responsible for collecting your monthly repayment plan payments and distributing the money to creditors. The trustee performs several other tasks:
- Review your bankruptcy petition and documents for accuracy. Once your paperwork is reviewed, the trustee will inform you if he or she has objections or needs more information.
- Examine you under oath at the 241 meeting of the creditors to ensure your information is accurate.
- Administer your bankruptcy repayment plan. Your monthly payments are sent to the trustee who holds the funds in trust for your creditors and makes distributions according to your plan.
- Objecting to improper creditor claims. Creditors file proof of claims with the court within 90 days of the meeting of creditors to state the amount you owe. The trustee reviews these claims and objects to any that are not filed correctly or lack documentation.
Contact a Bankruptcy Attorney in Las Vegas
The trustee plays a very important role in any bankruptcy case. If you are like most people, one of the most stressful parts of filing bankruptcy is meeting with the trustee and potentially your creditors for questioning under oath. A Nevada bankruptcy attorney can help you prepare and file your bankruptcy documents, represent you during your 341 hearing, and answer any questions you may have about the process.
Contact Vegas BK today for a free consultation with an experienced bankruptcy lawyer in Las Vegas who can help you explore your options and decide if bankruptcy is the right move for you.