Who
Is the Trustee and What is His Job?
In a Chapter 7 bankruptcy case, the Trustee is the court appointed official
who has two primary roles. First, he is to verify that you are eligible for
Chapter 7 and that the schedules you signed under oath and filed with the court
are accurate.
Second,
if
the
trustee
locates
any
assets
that
are
not
protected
by
state
or
federal
exemptions,
he
is
to
sell
them
and
distribute
the
proceeds
of
that
sale
to
your
creditors.
In
most
cases,
there
are
no
assets
to
liquidate,
so
do
not
be
concerned.
If
the
trustee
does
identify
assets,
we
probably
have
already
advised
you
about
this
possibility.
In a Chapter 13 bankruptcy case, the
trustee is the court appointed official who is responsible
for reviewing your proposed repayment plan, making
recommendations to the court regarding the feasibility
of that plan, and distributing the payments to your
creditors under the terms of the plan.
What Happens Next?
In a Chapter 7 case, at the conclusion of your hearing, there is very little
else you need to do. Occasionally, the bankruptcy trustee will request additional
information from you. You are obligated to comply promptly and furnish any requested
materials.
Prior to receiving your discharge order, you may receive correspondence from
our office proposing to reaffirm certain secured items, like your house, car
or household goods. Not every lender requires a reaffirmation agreement, but
it is very important that you review all correspondence immediately, as once
your case has been completed, you may forego your rights to reaffirm certain
debts.
Approximately 60 - 90 days after your hearing, you will receive a discharge
order from the court. The discharge order is the official court order relieving
you of your obligation to pay your bills.
In a Chapter 13 bankruptcy case, the discharge order is issued upon your successful
completion of the repayment plan. Again, it is very important to save this
document, as you will need to it to re-establish credit in the future.
What Happens at My Hearing?
In a Chapter 7 case, the trustee will ask you questions to verify your eligibility
for Chapter 7 relief and to determine that you have fully disclosed all of
your assets and liabilities.
Some of the common questions are:
Do you own a home?
Have you transferred any property?
Do you have the right to sue any one for bodily injury?
Have you listed all of your debts and assets?
Are you expecting to inherit money shortly?
The hearing only lasts about five minutes and is relatively
informal. Most of our clients are relieved after they
see how smoothly the hearing goes.
In a Chapter 13 case, the hearing lasts about 10 minutes.
In addition to the questions asked in most Chapter 7
cases, the trustee will also ask questions to verify
that you can afford your Chapter 13 payment and that
you are making your best efforts to repay your creditors
through your Chapter 13 payment plan.
What Should I Bring?
Please show up at least 15 minutes prior to your hearing time to give the attorney
time to prepare you and for you to ask any remaining questions. You should bring
a state issued photo I.D., your social security card (or some other item verifying
your social security number) and the notice sent to you by the court. In some
of the districts where we practice, the court requires you to bring additional
items. |
