When filing for bankruptcy, the court will appoint a trustee to fulfill various obligations associated with the case. Once appointed, the trustee will assume ownership of the debtor’s property, handling and distributing assets according to the type of bankruptcy being filed. Below, an attorney from Greene Law PC in Farmington, CT, discusses the role of a trustee in Chapter 7 and 13 bankruptcy proceedings.
A Guide to a Trustee’s Role in Bankruptcy Proceedings
Chapter 7 Bankruptcy
In a Chapter 7 bankruptcy case, the trustee is chosen at random from a panel of attorneys. The role of the trustee in these proceedings includes selling debtor-owned assets and property, satisfying outstanding debt with the proceeds, challenging claims from creditors, and objecting to the discharge if applicable.
Chapter 13 Bankruptcy
Because debtors retain ownership of their property in Chapter 13 bankruptcy, the role of a Chapter 13 trustee differs from that of a Chapter 7 trustee. Rather than gather, sell off, and distribute assets, the trustee in a Chapter 13 bankruptcy case is tasked with handling payments as outlined in the debtor’s repayment plan. In addition, many Chapter 13 trustees also offer financial counseling and support while challenging creditor claims where proof of debt is not evident.
Trustees Are Not the Enemy
Trustees are impartial officials in bankruptcy proceedings who are not out to “get you.” In fact, the vast majority of trustees are straight-laced, honest professionals seeking to ensure a quick and fair resolution for all parties involved. As such, it’s best for debtors to disclose requested information as accurately as possible, both to expedite the bankruptcy proceedings and avoid criminal prosecution.
If you have questions or concerns regarding filing for bankruptcy in Farmington, CT, an attorney from Green Law PC is available to help. Serving clients for over 25 years, their legal professionals will provide the counsel, support, and representation you need to obtain the fresh financial start you’ve been dreaming of. Free consultations are available. Contact the firm online or call (860) 676-1336 to speak with an attorney directly.