When you file for a Chapter 7 bankruptcy, in addition to your bankruptcy attorney in McKinney, TX, you will also have a bankruptcy trustee appointed to your case. This trustee will have a variety of responsibilities in your case that will be important for you to understand, including reviewing your bankruptcy petition and related documents, examining your file under oath, liquidating any non-exempt assets, as well as avoiding certain transfers or security interests.
When your bankruptcy attorney files your petition, your financial and personal information will be disclosed to the court. This information will include details about your income, your debts, your property, as well as the overall state of your financial affairs. Your trustee will also need to be sent certain documents, including tax returns and pay stubs, as well as details about your assets. The trustee will be tasked with reviewing your petition and making sure that what you provided is correct. A key part of this is double-checking the calculations you present in your financial documents.
About one month after your bankruptcy attorney files your case, you will need to attend a hearing with the trustee. Any of your creditors may be present and will be asked to attend. They can ask you questions at this hearing. The trustee has the job of conducting this hearing and asking whoever filed the bankruptcy questions under oath.
The most visible role of your trustee will be to liquidate your non-exempt assets. As a part of filing for Chapter 7 bankruptcy, you will be allowed to keep certain property, however, the rest, or even the majority, may have to be liquidated. The trustee will help to determine the value of the assets that can be sold to pay your creditors.
Your trustee will also have specific powers to prevent any transfers that are preferential or security interests that have been improperly executed. So for example, if you decided to try and transfer property to a family member or friend, or chose to pay back one creditor or another due to personal preference, your trustee can actually walk those payments or transfers back if he or she determines the transfer or payment was inappropriate. Remember, your trustee’s goal is to make sure your creditors get as much of their debt remediated as possible.
Navigating a bankruptcy can be a rat’s nest of legalities and complications, and it is extremely important that you have a qualified bankruptcy attorney in McKinney, TX on your side. Call Collins & Arnove today to discuss your case and get the professional representation you deserve.
Collins & Arnove | Bankruptcy Attorney McKinney, TX | 972-516-4255