The role of the bankruptcy trustee
We here at Nowack & Olson, P.L.L.C., understand that many people are discouraged from filing for Chapter 7 bankruptcy because they are uncomfortable with having their personal finances and financial difficulties scrutinized. You, like countless other Florida residents, may not be familiar with the role and/or duties of a Chapter 7 panel trustee. That is why it can be helpful to learn more about who Chapter 7 trustees are and what they do before moving forward with bankruptcy proceedings.
The National Association of Bankruptcy Trustees explains that a Chapter 7 panel trustee is a private citizen randomly chosen and appointed by the U. S. Trustee division of the U. S. Department of Justice to handle Chapter 7 bankruptcy cases. It is estimated that around one million Chapter 7 bankruptcies are administered annually by the some 1,000 active panel trustees across the country, and that one trustee is capable of administering hundreds of cases each year.
The duties of the Chapter 7 trustee can vary significantly from case to case. However, the primary obligation of the trustee is to benefit creditors by repaying them through the liquidation of assets. Consequently, the trustee assigned to your Chapter 7 bankruptcy case is obligated to investigate your financial affairs, as well as review and report on your personal debts and assets. In addition to reviewing any secured debts that you may owe to creditors, your Chapter 7 trustee will also consider the validity of any and all bankruptcy exemptions that you claim. It is important to note that while a Chapter 7 panel trustee has the authority to investigate and administer the liquidation of personal assets, the vast majority of cases filed each year do not actually result in such measures.
To learn more about chapter 7 bankruptcy trustees and other topics relating to asset liquidation, feel free to visit our webpage today.