The role of a bankruptcy trustee in Florida
When an individual files for bankruptcy, his or her property is put into what is known as a bankruptcy estate. This estate is a separate entity from the individual who filed for bankruptcy protection. The person charged with overseeing this estate is called the trustee. What the trustee actually does depends on the type of bankruptcy cases. In a Chapter 7 case, the trustee is charged with inventorying and liquidating non-exempt assets.
The trustee is also charged with objecting to a discharge if necessary or challenging a creditor claim if one occurs. In a Chapter 13 case, an individual is allowed to keep his or her property during the bankruptcy period. Therefore, the trustee is in charge of reviewing a repayment plan and handling payments made to creditors. A trustee may also object to a repayment plan if it is appropriate to do so.
Individuals who choose to file for Chapter 13 bankruptcy may be able to get a better handle on their debt without losing their property. The plan can allow them to catch up on past due auto loan or home loan balances. In the event that a creditor wants to foreclose on a property, a bankruptcy may postpone that foreclosure. During the bankruptcy period, it may be possible to make alternate arrangements to permanently end the foreclosure procedures.
Those who are interested in filing for bankruptcy may want to learn more about the process by meeting with a lawyer. Filing may make it possible to put an end to creditor contact and otherwise protect a debtor’s rights. There are a variety of requirements associated with each chapter that the lawyer can outline.