Uncertainty is something people are not comfortable with. Being in financial distress and not knowing what to do can be extremely distressing for people. There are several ways to get rid of debt, bankruptcy often being the last resort. However, once you have decided the option, there are many other things to consider. The various facets of bankruptcy can be quite confusing, primarily being the numerous proceedings associated with bankruptcy. A bankruptcy trustee is appointed to oversee the accounts in case of bankruptcy chapters. According to Los Angeles based bankruptcy law firm Recovery Law Group, a bankruptcy trustee is an unbiased person who handles your bankruptcy case.
Why is a trustee required?
When you file for bankruptcy, any property you own becomes a part of the bankruptcy estate. This is a separate entity for you and thus needs to be handled separately. To take care of it, a separate individual is appointed by the court. Different chapters of bankruptcy require different duties from the bankruptcy trustee. In the case of Chapter 7 bankruptcy, the bankruptcy trustee is involved in the liquidation of assets and distribution of the proceedings to the creditors. Various duties of a bankruptcy trustee include:
- Collecting of non-exempt property of the bankruptcy filer
- Liquidation of the non-exempt assets
- Distribution of the proceeds to the creditors
- Challenge any claims made by creditors who object to your bankruptcy filing
- Object to discharge of debts if certain debts are non-dischargeable
The role of the bankruptcy trustee is, thus, an extremely important one. Since many of the proceedings are complicated, it is advisable to have an attorney by your side. You can call 888-297-6023 to speak with experienced bankruptcy lawyers Los Angeles regarding your case.