When you file for bankruptcy, it’s important to understand the different facets of this process. One part of bankruptcy many are unaware of is their trustee. This is the person who will oversee your case. However, their role is much more involved, so understanding how they can impact your case is critical. The following blog explores what bankruptcy trustees do and how a Memphis, TN consumer bankruptcy attorney can help you navigate this complicated process.
What Is the Role of Bankruptcy Trustees?
When you make the difficult decision to file for bankruptcy in Memphis, it’s important to understand that this entity will play a significant role in the outcome of your case. During bankruptcy, it’s important to understand that they are appointed by the Department of Justice and cannot act without permission from the judge assigned to your case.
Trustees are assigned by the courts to manage your property during bankruptcy, as you will lose the right to your property during Chapter 7. Generally, during Chapter 7, your bankruptcy trustee will be the person who liquidates your assets to pay creditors back. During Chapter 13 bankruptcy, which is a three to five-year repayment plan, your trustee is responsible for accepting payments and ensuring they are allocated to creditors.
The trustee appointed to your case will have access to all of your financial information, so it’s imperative to understand that they will notice any suspicious activity occurring in your accounts. For example, if they have reason to believe you are concealing or hiding assets, they can provide the judge with evidence and have your case dismissed as a result. If this is the case, you will be prohibited from filing again for another 180 days, and any prior collection measures against you, including lawsuits, can resume.
Why Do I Need an Attorney if I Have a Trustee?
While having a trustee to manage your case may seem like an ideal option, it’s imperative to understand that they are not there to look out for your best interest. Instead, they are there to fulfill their role as ordered by the court to ensure you meet the orders imposed by the judge. They are not there to represent you or provide you with any legal advice during this process.
As such, connecting with an experienced attorney is in your best interest if you plan on filing for bankruptcy. Not only can they help you determine which chapter is best for your needs, but they can also help you file the paperwork, which can be confusing and complicated, to ensure there are no errors that can impact your case.
The bankruptcy process is one that is incredibly complicated, so it is in your best interest to ensure you connect with an experienced attorney from the Arnold Law Firm to assist you during these matters. Our team understands how important a fresh start can be, and that is why we are dedicated to helping you. Contact us today to learn how we can fight for you.
