Chapter 7 Trustee
Bankruptcy can be complicated, not only because of the process but also the number of terminologies that come with it. Among these terms is the Chapter 7 trustee. Many people don’t know who these experts are and what they can do to help during bankruptcy filing.
A Chapter 7 trustee is the designated individual who manages and oversees the bankruptcy filing process. Their tasks include the following:
Filing for bankruptcy includes multiple procedures and documents to submit. The documents include a lot of personal and financial information that will be submitted for assessment. Financial information includes the amount of money owed, assets, income, and current financial status. These documents will be submitted to the court as part of the filing process. The trustee will assess these documents for consistency and calculation.
Apart from the aforementioned documents, tax returns, pay stubs, and others may needed to be submitted as additional documents depending on a client’s financial status. The Chapter 7 trustee will then compare the information from main and supporting documents to see if they are consistent. For instance, the amount declared on you salary document will be compared with the calculated pay stubs.
A trustee also verifies documents to ensure they are valid and authentic to prevent fraudulent activities using these. The authorities want to know that you declared the asset accurately to avoid other future financial problems.
A Chapter 7 trustee will oversee the bankruptcy procedure after the assessment process is completed. This procedure is also known as creditors meeting wherein creditors will ask questions to the person filing for bankruptcy. The trustee will also ask bankruptcy information questions to the filer under oath. Creditors may or may not attend these hearings depending on the declared assets’ accuracy. Creditors often attend if they feel the filer is hiding some assets.
Asset Seizure and Liquidation
Chapter 7 bankruptcy lets debtors keep several assets according to a specific amount. However, some non-exempt properties must be sold to pay creditors. The Chapter 7 trustee will assess first the declared assets and distinguish the exempt and non-exempt assets. Non-exempt assets will then be liquidated or seized. The trustee will also educate the debtor about their assets to ensure they are aware of what will be left.
Notify Clients with Other Financial Needs
A person filing for bankruptcy may need to pay other financial responsibilities like child support. Since the individual is filing for bankruptcy, the trustee needs to inform the support claim holder about the bankruptcy procedure. The trustee needs to get payee information and other technicalities surrounding bankruptcy. The other party will also be updated with the last known address for contact information. They will remain updated until bankruptcy has been discharged.
A Chapter 7 trustee has a lot of responsibility for a debtor and the financial field. To ensure hassle-free bankruptcy filing, look for a topnotch trustee and someone who has been working in the field for a long time. They are well versed in the field after seeing a lot of individuals filing for bankruptcy, making them familiar with many financial situations.