People who are looking for a way to unbury themselves from their surmounting debt may find relief in filing for bankruptcy. Once a Chapter 7 bankruptcy has gone through the entire process and is discharged, you will be given a clean financial slate and a second chance. Once you have filled out and submitted your initial bankruptcy paperwork, a trustee will be appointed to your case. These designated officials are crucial to the outcome of your case, and it is important to know their role in the bankruptcy process.
The trustee will review all of the paperwork submitted to the court, including the list of monthly expenses, income and the schedule of property and assets. In part, the trustee is looking to see if you have any property and/or assets that are not protected and can be liquidated. Some property is considered exempt and cannot be repossessed and liquidated. If there is nonexempt property, the money received from selling off the items is distributed to creditors as a way to pay off some of the debt that is owed. The trustee is responsible for maximizing the amount of funds received from liquidating property and allocating those funds to creditors.
If there are not any unprotected assets or property, the case is considered a ‘no asset’ matter. The trustee will schedule a meeting of creditors, where creditors involved in the case are invited to ask the debtor questions regarding the bankruptcy.
This information is intended to educate and should not be taken as legal advice.