Trustees Have A Tough Job Dealing With Those Filing Bankruptcy

April 17th, 2010 by admin

Chapter 7 bankruptcy trustees have a dirty job in consumer cases. Sometimes they have to be harsh to do it right. But if you’re playing by the rules, they hope it will be as painless as possible. Trustees don’t exist to make you feel bad for having to file bankruptcy. That’s the first most important thing to realize. Many of them represent people filing bankruptcy. They know most debtors regret having to file and they hope to make the process as painless as possible. The trustee’s job is to make sure creditors get paid what they are entitled to and at the debtor is doing what they’re supposed to. In a typical Chapter 7 case, they get paid only $60 from the debtors filing fee and nothing if the debtor qualified to file for free. They don’t get paid anything more unless they collect money for the creditors.

 

The job of the bankruptcy court trustee is to make sure the creditors get as much money as possible from the bankruptcy. So the trustee has an incentive to dig and find out if there are assets which are unprotected from creditors or which can be recovered to benefit. But they assume when you file bankruptcy that you are accepting the deal that’s part of Chapter 7 bankruptcy, you give up any assets which the law doesn’t protect freely in return for the fresh start. Most people who file Chapter 7 bankruptcy don’t lose any of their property that they are trying to protect.

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