CHAPTER 7 TRUSTEE? WHO ARE THEY AND WHAT IS THEIR PURPOSE?

In short, a chapter 7 Trustee is a person appointed by the US Department of Justice to review the case and investigate the debtor and the debtor’s assets.  One of their main jobs is to make sure they get an accurate picture of the debtor’s assets. This will allow them to determine if any of the assets are subject to their control. If the assets are not encumbered by a creditor’s lien or protected by State of Constitutional exemptions give to each debtor by law, the Trustee has the right to take the asset and action it to the highest bidder. In Jacksonville and Orlando, the Trustees will allow the debtor to “buy back” the assets for a reasonable value.  Most Trustees will allow the debtor to make payments over 10-12 months.   This makes it manageable for someone who is having financial problems and owns something like a vehicle outright. The Trustee will allow the debtor to keep the vehicle while making equal payments spread out of 10-12 months for the value of the property. Another important job of the Trustee is to prevent Fraud. The Trustee is allowed to investigate and ask questions of the debtor about their past financial transactions. If the debtor has done something wrong the Trustee has the right to request that the Judge revoked or disallowed the discharge. Remember, the Bankruptcy Court is made for the honest but unfortunate person who can’t afford their bills.

Chapter 7 has some pitfalls. That is why you should always hire an attorney to guide you through the law. If you don’t then you may lose assets and money that would far exceed the cost of a good attorney. A good Bankruptcy Attorney should be able to prevent your assets from being taken by the Trustee by placing the correct State and Constitutional exemptions on your assets.  If the value of the assets exceeds the amount you can exemption then a buy back is always a good option. If the buyback is too high then you may have to do a chapter 13 bankruptcy to protect the assets.

Chapter 7 has some pitfalls. That is why you should always hire an attorney to guide you through the law. If you don’t then you may lose assets and money that would far exceed the cost of a good attorney. A good Bankruptcy Attorney should be able to prevent your assets from being taken by the Trustee by placing the correct State and Constitutional exemptions on your assets.  If the value of the assets exceeds the amount you can exemption then a buy back is always a good option. If the buyback is too high then you may have to do a chapter 13 bankruptcy to protect the assets.