If you’ve decided to file a Chapter 7 bankruptcy then you’ll be assigned a trustee from a panel of people, typically lawyers. You will meet your panel trustee when you have your 341 meeting, which is where you answer questions about your assets and your financial situation.
The panel trustee in a Chapter 7 is charged with reviewing your assets and debts and then selling available assets and dispensing the proceeds in a way that they deem most appropriate. Your property will be put into two categories, exempt and nonexempt. Everything that is categorized as nonexempt could be sold.
Not only can your panel trustee touch your assets but certain payments that you received within six months before filing for bankruptcy can be reclaimed as well. If the panel trustee can find payments that you made prior to filing bankruptcy that fit into a non exempt category they can reclaim those and use them to pay off your debts as well.
The degree to which Chapter 7 files get along with their panel trustees depends on the situation. Although the panel trustee is paid with a commission, that is based on how much money they collect, most often the trustee is just out to do their job in the most fair and equitable manner possible. If you keep this in mind the entire experience will be a bit easier to take. Also, don’t go into the process thinking that you’re going to lose e