Chapter 7 or
Chapter 13 bankruptcy proceedings, a trustee is appointed by the federal government to oversee
the case. In most cases, a bankruptcy attorney or accountant will serve
as the trustee. The trustee plays an important role during the bankruptcy
- Ensuring debtors are in compliance with regulations
- Ensuring debtors are honest about their situation
- Ensuring the debtor is not committing fraud
When a trustee is appointed to your case, they examine information associated
with your filing to make sure it is presented correctly to the court.
As a result, a trustee may request additional information from the debtor
to justify data in the petition. A bankruptcy case could be dismissed
if fraud is suspected.
While both Chapter 7 and Chapter 13 have trustees appointed, their roles
differ depending on the chapter filed. Chapter 7 discharges or eliminates
qualifying unsecured debts. In Chapter 7, if qualifying assets are present,
the trustee would oversee the distribution to creditors if the assets
have value. It's common for debtors to not have assets of significant
value when filing this chapter because there are exemptions in place to
allow a debtor to keep most assets.
Chapter 13 involves reorganizing debt through a structured payment schedule.
This option usually has debtors making payments for a three to five year
period. A Chapter 13 trustee makes sure debtors make their payments according
to the repayment plan. The trustee will review the plan, oversee the process
and collects payment from debtors to disburse to creditors.
In Need of an Experienced Lawyer? Contact Allmand Law Firm, PLLC Now!
If you have been suffering from unbearable financial debt,
our team of Dallas bankruptcy lawyers has the knowledge, skills, and experience to help you get your life back
on track. When you choose to work with our team, we will examine your
financial situation and inform you of the best strategies to get your
situation resolved right away.
To speak with a Dallas bankruptcy attorney,
call us today!