Deciding to move forward with Chapter 7 bankruptcy may have brought about mixed feelings for you. You may have felt somewhat defeated because you believe that you somehow caused your financial affairs to get out of control but may have also felt somewhat relieved in knowing that you have chosen to take a path to get your financial affairs back in order.
Chapter 7 is a complex process to complete, and you will work with various parties throughout your case. In particular, a bankruptcy trustee will play an important part in the affairs of your bankruptcy proceedings.
What does a bankruptcy trustee do?
The bankruptcy trustee takes on many obligations during the course of a Chapter 7 case. Essentially, this person will ensure that the information you provide is correct and that the proper steps are taken to complete your case. Some responsibilities of a bankruptcy trustee include the following:
- Reviewing your bankruptcy documents to ensure accurate information
- Assessing the information for any signs of fraud
- Collecting non-exempt assets for liquidation
- Obtaining the funds gained from the liquidation and distributing those funds to creditors in order of priority
The trustee also has authority in your case to take action in certain events, such as:
- Determining that a creditor does not have a valid claim against you
- Filing a lawsuit against you in efforts to obtain property if he or she believes you have attempted to hide funds or assets from creditors
If it seems as if the trustee is not someone who will be on your side during your case, you are correct. The trustee is an unbiased outside party who sides with neither you nor your creditors. Instead, he or she has the obligation to ensure that the case proceeds as necessary.
Who is on your side?
Though the trustee will not act as your personal advocate during your case, you do not have to go through bankruptcy alone. In fact, you can obtain an advocate by enlisting the help of a Texas bankruptcy attorney. This individual could help you organize your bankruptcy petition, help you better understand the role of a bankruptcy trustee and provide you with answers to any questions that you may have regarding your case.
Though Chapter 7 bankruptcy may seem like a stressful step to take, it may end up relieving a great deal of your financial stress in the end.