A trustee plays a vital role in the bankruptcy process. In Missouri, the court appoints a trustee (usually another attorney) to administer the case and liquidate the debtor’s non-exempt assets. Today’s blog from the bankruptcy attorneys at Groce & DeArmon P.C. explains what a trustee does in Chapter 7 bankruptcy.
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The first thing a trustee does is review the petition and associated paperwork. He or she examines your debts, property, income, and financial viability. For example, a trustee will look at your pay stubs to see if your assertion of $2,500 a month in income is accurate.
Maximizing Returns on Debt Payments to Creditors
The main role of a trustee in Chapter 7 bankruptcy is to liquidate assets to return the most money to unsecured creditors. Typically, this means selling property to pay unsecured debts, such as credit cards and medical bills. Secured debts simply mean the creditor is allowed to take possession of the property, such as a vehicle or home. A trustee may determine that bankruptcy is a “no asset” case, meaning nothing can be sold to satisfy debt obligations.
Filing Petitions & Attending Hearings
A trustee for Chapter 7 bankruptcy has the authority to make petitions to the court. Petitions include criminal fraud, filing claims for security interests, determining if any property was transferred improperly before Chapter 7 bankruptcy, and helping to settle liens on secured property with creditors. The trustee also attends all hearings in court, including a meeting of creditors.
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Talk to Bankruptcy Attorneys at Groce & DeArmon P.C.
A trustee plays an essential role in Chapter 7 bankruptcy proceedings. If you’re considering filing for bankruptcy, you need experienced attorneys on your side. Contact Groce & DeArmon P.C. or call toll-free 1-800-640-3706 in Missouri or 417-862-3706 for a free consultation.