If you’re unfamiliar with bankruptcy law, it’s easy to feel overwhelmed by all the legal guidelines and jargon. For example, what is a bankruptcy trustee, and how do they differ from the judge or your lawyer? A trustee is a key figure in how a bankruptcy filing proceeds. To learn about what to expect from this debt relief route, take a look at the following guide.

A Brief Overview of Bankruptcy Trustees

The Role of a Bankruptcy Trustee

If you decide to file for bankruptcy, the Department of Justice will assign an individual to oversee your case. The official title of this person is “bankruptcy trustee.” Their specific duties will depend on your individual case, such as who you owe money to, but essentially, they’re in charge of organizing your debts. Their role will also be affected by which type of bankruptcy you file for: Chapter 7 or Chapter 13.

What They Do in Chapter 7

If you file for Chapter 7 bankruptcy, you won’t be paying back your debts. Instead, your assets will be liquidated to pay back your creditors. Therefore, the bankruptcy trustee must gather your property, such as any real estate, vehicles, jewelry, and other big-ticket items.

They’re in charge of selling or auctioning off this property to obtain the funds to compensate your creditors or lenders. If they feel that the creditor’s claims are unreasonable or inaccurate, they can challenge them.

What They Do in Chapter 13

Chapter 13 bankruptcy allows debtors to work out a repayment plan, which allows them to pay off what they owe at a more manageable rate. It can last three to five years but allows debtors to hold onto their property and leaves less of a dent on your credit.

Therefore, instead of gathering your property, the bankruptcy trustee is tasked with assessing your repayment plan and making changes as they see fit. They’ll also collect payments from the debtor and distribute them to the various creditors.

If you’re interested in learning more about this debt relief option, let the Law Offices Of Harry G. Lasser help. This trusted Cookeville, TN, attorney will educate you on bankruptcy law and suggest the best option for your circumstances. Attorney Lasser helps clients through Chapter 7, 11, and 13 bankruptcy and has over 20 years of experience doing so. To learn more about his skills, visit the website. Call (931) 372-9988 to schedule a free consultation.