When undergoing bankruptcy, it is important that debtors understand the role of a bankruptcy trustee. When involved in a bankruptcy case, the trustee’s main interest is to mediate financial matters with creditors. This knowledge will help when working with a bankruptcy trustee.
The trustee is a court-appointed official who is in charge of directing the affairs of the debtor’s bankruptcy estate. A Morris County bankruptcy lawyer can fully explain how a trustee is assigned. Chapter 7, Chapter 11 and Chapter 13 filers are all appointed a trustee by the bankruptcy court judge. Having the assistance of an experienced Morris County bankruptcy attorney can help you make the transition as worry-free as possible.
Basic Responsibilities of Trustees
There are certain responsibilities that trustees must do when assigned to a bankruptcy case. For instance, trustees must ensure that the handling of the debtor’s estate is administered efficiently. A Morris County bankruptcy lawyer can help you understand a trustee’s responsibilities including:
- Presides the meeting between all creditors and help prevent fraud and abuse
- Investigate any questionable financial matter and prosecute if necessary
- Chapter 7 bankruptcy trustees must determine if there are any assets to liquidate in an estate
- Organizes a meeting with creditors’ committees under Chapter 11 cases
Chapter 13 trustees check for accuracy and distribute repayment proposals to the creditors. A helpful Morris County bankruptcy lawyer will be able to share with you further other responsibilities trustees have.
Why Trustees Exist
After filing for bankruptcy, court-appointed trustees are assigned to debtor’s cases to manage their affairs. The main goal of the trustee is to ensure that creditors are paid and justice is maintained throughout the process. A Morris County bankruptcy attorney can help you better understand why trustees manage debtors’ estates.
When a trustee asks for information, answer them with direct and open responses. These questions will consist of personal property and debt inquiries. Since you are under oath, it is also important that you are as honest about your financial picture as possible. A qualified Morris County bankruptcy attorney can assist you in gathering the information needed to answer these questions.
Working with a bankruptcy trustee does not have to be awkward. However, it is important to consult with a knowledgeable Morris County bankruptcy attorney who can assist you in making your decisions. By understanding the role of the trustee, it can help ease tension and help you to understand why trustees exist. A Morris County bankruptcy lawyer can walk you step by step through the process of working with bankruptcy trustees.