For many, the idea of filing bankruptcy can be overwhelming, as there are many different factors and considerations that can impact your case, including your bankruptcy trustee. If you’re unsure of the role this entity will play in your case, you’ll want to keep reading. Additionally, you’ll discover the importance of working with a Newburgh bankruptcy lawyer to help you through the process and seek relief from debt.
What Function Does a Bankruptcy Trustee Serve During My Case?
When you declare bankruptcy, a trustee will be appointed to your case by the Department of Justice. Their main job is to oversee and manage your property during bankruptcy. It’s imperative to note that the trustee assigned to your case must act under the direction of the judge assigned to your case.
During Chapter 7 bankruptcy, the trustee is responsible for managing your property, as you lose the right to ownership. Typically, they will liquidate assets in accordance with the Bankruptcy Code and use the money to repay your creditor. If you file Chapter 13, which reorganizes your debts into a repayment plan, you will pay your trustee, who will then distribute assets to your creditors.
In addition to managing property and paying creditors, your trustee is also responsible for ensuring all necessary paperwork is completed correctly and filed on time. Additionally, they have access to your financial information during your case. As such, if they notice any suspicious activity, they are legally obligated to report it to the judge assigned to your case. For example, if they believe you are hiding assets, the judge can review the evidence and dismiss your case as a result. If this occurs, you will be prohibited from filing bankruptcy again for 180 days. The automatic stay will also be lifted, meaning collection efforts from creditors, including foreclosures or lawsuits, may resume.
Do I Need a Lawyer if I Have a Trustee?
Unfortunately, many assume that having a trustee to manage the filing negates the need for an experienced bankruptcy attorney. If you are considering filing, it is critical to understand that the trustee is not there to help you. They are there to serve the court by ensuring you meet the orders imposed by the judge assigned to your case. Your trustee will not consider your best interest or offer any legal advice during your case.
As such, it is critical to work with a bankruptcy lawyer if you are considering filing. Your lawyer can not only assist you in determining which bankruptcy option is best for your specific circumstances, but they can also help ensure the paperwork you’ve filled is correct and complete. This can help reduce unnecessary issues and delays with your case. Your attorney will also work with you throughout the entire process to help ensure you make the most informed decisions possible during your filing.
If you’re ready to move forward with this process, look no further than the Law Offices of Michael D. Pinsky, P.C. Our team is committed to helping you achieve the best possible outcome for your circumstances. Contact us today to learn why so many in Orange County and the surrounding area have trusted us to guide them through this process.
