In every case, a neutral bankruptcy trustee is appointed to monitor and implement the different bankruptcy tasks. The trustee’s principal duties and obligations involve managing bankruptcies and distributing funds to creditors. Read on to learn more about the specifics and then contact The Law Offices of Paul Y. Lee at 951-755-1000 if you are in need of a bankruptcy consultation with an experienced attorney.
Examining the petition and supporting documents
The bankruptcy trustee goes over all of the papers in your bankruptcy petition to make sure all of the information about your debts, property, and income is accurate. To conduct their review, they usually rely on third-party sources such as tax records and pay stubs. Of course, if you hire a bankruptcy lawyer to draft your petition, you can be sure that all of your documents are in order and that the trustee will not discover anything unpleasant.
Organizing the creditors’ meeting
You will be required to attend the Meeting of Creditors about a month after filing for bankruptcy. Unless your creditors suspect you are lying about your assets, this conference is rarely attended by any of your creditors. However, creditors are welcome to attend the meeting, and if they do, they will be able to question you under oath. The bankruptcy trustee will almost certainly interview you under oath to confirm the specifics of your bankruptcy petition.
Preferential transfers are being revoked
Preferential transfers is one of the subjects that may be discussed at the Meeting of Creditors. These are cash or property transfers to certain individuals or creditors that give them a financial advantage over your other creditors. Transfers to family members made a year before filing and transfers to creditors made 90 days before filing may be considered favorable transfers. If your bankruptcy trustee suspects a preferential transfer, they can reverse it and disperse the funds among all creditors fairly.
Asset Liquidation (Chapter 7 only)
You must liquidate any non-exempt assets and property during a Chapter 7 bankruptcy. This will be handled by your bankruptcy trustee, who will verify the status of your property to identify all non-exempt assets, sell them for the greatest price possible, and distribute the money to your creditors.
Taking Care of the Repayment Plan (Chapter 13 only)
Chapter 13 bankruptcy allows debtors to consolidate their debts into a three- to five-year payment plan. The trustee is in charge of receiving your monthly payments and distributing them to your creditors for the duration of the repayment period in this sort of bankruptcy. All transactions, including cash paid and dispensed, are supposed to be meticulously recorded by the trustee.
Do you have further questions about filing for bankruptcy or how the process works? If so, contact The Law Offices of Paul Y. Lee at 951-755-1000 for a consultation. We are ready to get started working for you.