If you are considering filing for bankruptcy, you will hear all about the bankruptcy trustee. The bankruptcy trustees job is to sell your stuff or make a deal with you so that you can keep your stuff if you are over the allowable exemption limits for your state. It is in a debtors best interest to get your assigned trustee out of your life as soon as possible. Your bankruptcy attorney can advise you as to whether you will have to worry about a bankruptcy trustee getting involved in your case. If the bankruptcy trustee does not take any of your assets, he will most likely file a notice of no distribution and your case will be considered a no asset case. If the trustee is interested in some of your assets that are over the allowable exemption limits your case becomes an asset case and he will inform you of his intent to look into your case at your meeting of creditors.
In most cases, you will be able to make a deal with the bankruptcy trustee to keep your assets in exchange for a sum of money to be distributed to your creditors, should your case be an asset case. That is of course if you can come up with a lump sum in which to pay the trustee. Bankruptcy trustees will stop at nothing to try to get their hands on money for the benefit of your creditors. Bankruptcy trustees also have a personal stake in trying to get money out of you because they get a percentage of any assets that they are able to obtain from you.
In chapter 13 cases, repayment plans must be approved by the chapter 13 trustee and the bankruptcy court. Chapter 13 bankruptcy trustees love to object to repayment plans in order to get the most money out of debtors as possible. If the trustee and debtors counsel cannot come to an agreement, the dispute may end up being heard before a bankruptcy court judge who will make a final binding decision on any disputes. This process can be extremely stressful for debtors because they don’t know what their final payment plan is going to look like and none of their bills are getting paid prior to confirmation. This process can take several months before your final chapter 13 plan is confirmed and your creditors start getting paid. At the end of the day, the trustee is not your friend and their involvement in your case may turn out to be a real thorn in your side.
If you have additional questions about how bankruptcy trustee’s operate, feel free to give Symmes Law Group a call today at 206-682-7975