When preparing to file a bankruptcy case, it is good to know what it entails and what you should expect. Once you have filed a bankruptcy case, the bankruptcy court appoints a bankruptcy trustee to handle the administrative roles in your case. Although the appointed trustee could be a lawyer, it is not a legal requirement. Where possible, you should have competent bankruptcy attorneys working closely with the trustee. The roles that a trustee plays in a chapter 7 liquidation case include:
Investigating financial situation of the filer
When filing for bankruptcy, the filer would always give information that suits their case. The court can’t just declare you bankrupt before a proper investigation is done. This means the court must be sure your financial situation correlates with what you have filed for. This is where the appointed trustee comes in. The trustee searches public records to know whether the filer omitted any personal property when filling details in the bankruptcy form. Sometimes the filer feels harassed when the search is being done, and defense from experienced bankruptcy attorneys would be important.
Conducting meeting for the creditors
Being bankrupt means, you owe some people debts either in cash or property form. The people to whom you owe debts are called creditors. Creditors are known to take merciless measures towards their debtors even before they notify them. The law provides that the creditor should notify their debtors before they take any legal measure against them. With the help of your Houston bankruptcy attorney, the trustee conducts a meeting with your creditors to look for a friendlier solution. Click here Houston Bankruptcy Lawyer for more information.
The trustee is mandated or authorized to sell a property that belongs to the debtor to clear or reduce the debt. However, it should be noted that not every property can be sold on this basis. The trustee should first find out if the filer’s property is nonexempt. This means a property with no protection from federal or state exemption. Upon the consent of your Houston bankruptcy attorneys, the trustee can sell that property and distribute the money to your creditors. Exemption laws differ from one country to another. However, some necessities such as home equity, household furnishings, clothing and cheap vehicles enjoy protection.
Preparing appropriate reports and summaries
If the filer owns a business, the court could authorize the business to continue operating. However, this could come with some conditions. For instance, the court may require the filer to prepare a statement of disbursements and receipts. The filer should always be cautious when filing these sections with a trustee who is not a lawyer. It is advisable for the filer to file such details after they have discussed it with their Houston bankruptcy lawyers.
It is true a bankruptcy trustee could offer you all the assistance you need when filing a bankruptcy case. However, you should not be ignorant of some other things. It is not always right to imagine that a trustee could do all that your bankruptcy attorneys could do for you. A trustee may not give your interests the attention you would expect in a bankruptcy case. Visit http://weberlaw.com