Facing Bankruptcy? Contact Walker & Walker Law Office Today
What is a bankruptcy trustee?
In the simplest and most direct terms:
- The bankruptcy trustee is an attorney (or sometimes non-legal financial official) appointed by the court to oversee and aid in your case
The bankruptcy trustee is not a judge, and normally you do not meet with them in a courtroom.
However, it is important to remember that your bankruptcy trustee is not your Minnesota bankruptcy lawyer.
However, they are not actively working against you either. They are merely there to oversee the bankruptcy process is followed through outside of a courtroom.
A Bankruptcy Trustee’s Role
The role of a bankruptcy trustee will vary slightly depending on the chapter of bankruptcy you are filing.
You’re Filing Chapter 7 Bankruptcy
- The trustee is charged with overseeing the process of selling off non-exempt assets from your bankruptcy estate to pay your creditors
In this type of bankruptcy, you and your bankruptcy lawyer will compile a list of all your assets and make exemption claims. You will then meet with the bankruptcy trustee at a Chapter 7 Bankruptcy 341 meeting of creditors.
The trustee is responsible for going over all the financial compilations provided, approving exemptions, and verifying the accuracy of the information you provided to them. They will make sure everything is documented and prepared properly for an accurate bankruptcy case to be carried out.
You’re Filing Chapter 13 Bankruptcy
In Chapter 13 Bankruptcy, the trustee is more involved in the process.
In a Chapter 13 Bankruptcy:
- The trustee will not liquidate assets, but rather look over a proposed repayment plan, make revisions to it, and finally approve it
- The trustee will then collect payments on a regular basis to make sure your creditors are repaid
Again, you and your bankruptcy lawyer will compile your assets in addition to a repayment plan and then meet with the trustee in the Chapter 13 Bankruptcy 341 meeting of creditors.
The Trustee is Not Your Enemy
In many legal cases, it is often suggested that the attorney working for the court is the “enemy,” like when a prosecutor works to present evidence to convict a criminal.
It’s not the same in bankruptcy cases.
The bankruptcy trustee is not your bankruptcy lawyer that will help you with filing you Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, and you should:
- Think of them as more of a neutral, a referee, not someone actively working against you
Your bankruptcy lawyer is working solely for you, and the bankruptcy trustee is someone who is charged with making sure you are following the law and that the bankruptcy plan is carried out.
Be honest with your bankruptcy trustee
One of the most important rules is to always act honestly with your bankruptcy trustee.
- They can help you by being fair and impartial only if you provide an honest presentation of your financial situation
- If you do attempt to hide assets, the bankruptcy trustee, if they discover this, will have little choice but to dismiss the bankruptcy case
- This leaves you at the full mercy of your creditors
- Furthermore, if you were malicious enough, there may even be criminal charges that follow
However,they understand there is a world of difference between just forgetting about something and actively trying to hide it.
If you are honest with the trustee, they can be quite understanding in this sort situation if you are up-front with them about it.
In over 40 years of practising bankruptcy law in Minnesota, I’ve never had a client accused of, or convicted of, bankruptcy fraud.
Need Help? Contact Our Bankruptcy Attorneys Now
The appointment of a bankruptcy trustee is just one of the many new terms that will come from filing bankruptcy in Minnesota.
However, you know that the bankruptcy trustee is not your enemy. Your experienced Minnesota bankruptcy lawyer will explain and walk you through every step of the bankruptcy process in Minnesota.
The Walker & Walker Law Offices in Minneapolis, St. Paul, Blaine and Brooklyn Park Minnesota will help you change your financial future through bankruptcy, and ensure sure you fully understand every step of the Minnesota bankruptcy process.