When deciding to file for Chapter 7 Bankruptcy or any other Bankruptcy Chapter, you need to know exactly what you need to do, what you should expect, and about the people who you’ll be dealing with. This means you must be familiar with the process of filing as well as the role of the Bankruptcy Trustee in Chapter 7.
Filing for Chapter 7 Bankruptcy can be a very difficult and complicated process for any debtor. Still, despite its limitations, Chapter 7 Bankruptcy filing is the best way to wipe out most of your debt and bring you closer to a much-needed fresh start. Because of this, getting it done requires a collaborative effort by multiple individuals. The role of the Bankruptcy Trustee in Chapter 7 plays a major part in the success of your petition and in helping every debtor achieve debt relief.
To find out if filing for bankruptcy is the best option for your current financial situation and what is the role of the Bankruptcy Trustee in Chapter 7, get in touch with the Law Office of Jeffrey B. Kelly to have your bankruptcy case initially evaluated for free!
Why Do I Need a Bankruptcy Attorney in GA?
Apart from having the skills, knowledge, and experience to help guide you throughout the entire bankruptcy process, our law firm believes that all clients deserve to work with a bankruptcy attorney who:
- Is confident in his abilities to represent any client effectively.
- Gives you all the resources needed for you to be successful in clearing your debt.
- Dedicates a lot of time and effort to every bankruptcy case.
- Carefully develop strategies that are focused on giving every debtor the best possible outcome.
We understand that every misstep can lead to unwanted consequences and could cause delays in your petition. A Georgia bankruptcy attorney will explain to you in detail what the role of the Bankruptcy trustee in Chapter 7 is. Our team at the Law Office of Jeffrey B. Kelly makes sure that you are aware of everyone involved in the Chapter 7 Bankruptcy process. For all your concerns about Chapter 7 Bankruptcy filing, give our law firm a call immediately!
The Basics of Chapter 7 Bankruptcy Proceedings
According to the Bankruptcy Code, Chapter 7 Bankruptcy is a federal legal process by the United States government that gives the petitioner a chance to attain debt relief by gathering and selling each non-exempt asset (property that are not protected by bankruptcy exemptions) that you possess. The role of the Bankruptcy Trustee in Chapter 7 will be managing all your non-exempt property.
Also known as liquidation, this bankruptcy process might end up costing you most of your assets including your car or even your house. Individuals who file for Chapter 7 Bankruptcy are those seeking a quick way to get a fresh start as your debts may be discharged in as short as 3 to 6 months.
To be eligible in filing for Chapter 7 Bankruptcy protection, the individual, partnership, corporation, or business should appear before the bankruptcy court and follow any given orders 180 days before the bankruptcy petition. You must also have received counseling from an approved credit counseling agency within 180 days before filing unless you are qualified for an exception.
Additionally, you need to pass a means test and a totality of the circumstances test to see if your current situation qualifies you for Chapter 7 Bankruptcy case filing.
Prior to going through the paperwork necessary for Chapter 7 Bankruptcy filing, you must have necessary information on the following:
The Main Role of the Bankruptcy Trustee in Chapter 7
There are several types of trustees that exist in various areas of law. Nonetheless, all of them share the same legal responsibility which is holding and administering property.
The main role of the Bankruptcy Trustee during Chapter 7 is being the one responsible for gathering and selling your assets since you technically no longer own any of it. While your Chapter 7 Bankruptcy case is open, your property will be held by the trustee in a bankruptcy estate.
Other Responsibilities of the Bankruptcy Trustee in Chapter 7
As previously mentioned, the primary role of the Chapter 7 trustee is to sell any property that is not exempt and then disperse the funds to all your creditors. It is also the Chapter 7 Trustee’s job to inform the bankruptcy court about any disagreement you expressed while determining which of your property is exempt and which are not.
The role of the Bankruptcy Trustee in Chapter 7, however, is not limited to only managing your assets. It also includes:
- Reviewing all the paperwork you submitted for your bankruptcy petition
- Checking to confirm your identification
- Conducting the 341 creditors meeting
- Asking you questions about the documents you prepared
- Locating and investigating on assets that were not disclosed
- Seizing assets that are not protected by Chapter Bankruptcy exemptions
- Verifying all proof of claim forms submitted by your creditors
To find out more regarding the role of the Bankruptcy Trustee in Chapter 7, speak to a trusted Georgia bankruptcy attorney today.
How a Bankruptcy Trustee Gets Paid During Chapter 7
As of August 2020, the Chapter 7 Trustee should typically receive around $65 for doing a basic review of your petition. A Chapter 7 Bankruptcy Trustee, however, has the ability to earn more since the court will pay the Trustee a commission taken from the funds distributed to your creditors. The sources for the funds can include:
- Non-exempt property sold by the trustee
- Money coming from your bank account
- Amount you pay to keep any non-exempt property you own
For fulfilling the role of the Bankruptcy Trustee in Chapter 7, the Trustee is set to receive around 25% of the initial $5,000, 10% of any amount ranging from $5,000 to $50,000, and 5% of any amount that exceeds $1,000,000.
Call our Georgia Bankruptcy Attorney Today!
Whether you’re filing for Chapter 7 Bankruptcy or for a different Bankruptcy Chapter, there’s no denying how important it is to be on the same page as your Trustee during the process. Our Georgia-based attorneys at The Law Office of Jeffrey B. Kelly is capable of guiding you to the path that should lead to your financial freedom that includes knowing what is the role of the Bankruptcy Trustee in Chapter 7.
Not eligible for Chapter 7? Filing for Chapter 13 Bankruptcy can be an option.
We have law offices located in Rome, Dalton, Kennesaw, Cartersville, Dallas, and Marietta. Feel free to drop by anytime to avail of a FREE initial consultation of your bankruptcy case.