Role of the New Jersey Chapter 7 Personal Bankruptcy Trustee
There are different individuals who play different roles in the bankruptcy process. One of those people is referred to as the “bankruptcy trustee” who handles many important aspects of your bankruptcy.
Therefore, it is important for you to understand the role of the New Jersey Chapter 7 personal bankruptcy trustee and how this role relates to your bankruptcy filing. If you have any further questions, contact a knowledgeable attorney who can help.
Defining a Trustee in a Chapter 7 Bankruptcy
Most people have heard the term trustee before. A bankruptcy trustee is an individual appointed by the court . The role of the New Jersey Chapter 7 personal bankruptcy trustee is to oversee a person’s bankruptcy proceedings. In addition, the U.S. Trustee’s office also oversees every bankruptcy case but is typically not involved in the individual bankruptcy process. In a chapter 7 bankruptcy, a claimant usually only meets with the bankruptcy trustee and may not ever see the bankruptcy judge assigned to the case.
Duties of Personal Trustees
The role of the New Jersey Chapter 7 personal bankruptcy trustee is quite important as they have many duties during the bankruptcy process. One of those responsibilities is to review and administer the bankruptcy. When someone files bankruptcy, there is a petition filed with the court that starts the bankruptcy process in the court system.
After the individual files their bankruptcy petition, they meet with their bankruptcy attorney and the trustee who goes over the bankruptcy petition and asks questions relating to the information in the bankruptcy petition.
The bankruptcy trustee also reviews the person’s assets to determine whether they have any property that can be sold or used to satisfy the amounts owed to creditors. It is important to know that much of the property may be exempt and therefore may not be taken by the bankruptcy trustee. There are certain exemptions that the person is entitled to that can help them keep property away from the bankruptcy trustee. The bankruptcy trustee can also make a recommendation to the judge that the claimant receives an order of discharge, which is an order that discharges some or all the debt.
How these Obligations May Affect Someone Filing for Bankruptcy
The responsibilities of the bankruptcy trustee may affect the claimant in different ways. One way is that the bankruptcy trustee may want to use funds in the person’s bank account or sell their property in an effort to satisfy their debt.
For example, if a person has funds in their bank account that are not covered by an exemption available to protect that bank account, the bankruptcy trustee can consider those funds to be assets of the bankruptcy and can make those funds available to be distributed to the creditors.
Another way a bankruptcy trustee’s obligations can affect a person relates to avoiding preferential transfers. For example, if someone transferred property or paid back a creditor within a certain time before filing bankruptcy, the bankruptcy trustee could treat these transactions as preferences that can be avoided.
In other words, the bankruptcy trustee could take steps to get the money or property back to use that money or property as a way to pay back a person’s creditors. There are multiple roles of the New Jersey chapter 7 personal bankruptcy trustee that take place. An experienced New Jersey bankruptcy attorney can help explain those roles and how they may affect a person’s filing for bankruptcy.
Consulting with a New Jersey Attorney About the Role of a Chapter 7 Personal Bankruptcy Trustee
Understanding the bankruptcy trustee’s role and how this may play out during the bankruptcy process can give you confidence knowing what to expect when you meet the bankruptcy trustee and what steps can be taken in your bankruptcy.
You can obtain more information about filing for bankruptcy and about the various functions of the New Jersey Chapter 7 Personal Bankruptcy Trustee by calling an experienced New Jersey Bankruptcy attorney for more information. Call today to set up a free consultation.