a

What is a Bankruptcy Trustee and what does he or she do?

hi I'm Steve Richardson whether you file

a chapter 7 or a chapter 13 bankruptcy

here in New Jersey a trustee is going to

be assigned to your case now you might

ask yourself what's a trustee and what

does a trustee do well if the trustees

duties are different depending upon

whether you file a chapter 7 or chapter

13 if you'd file a chapter 7 the trustee

is the representative of the creditors

he or she acts on behalf of creditors at

looking at your bankrupt estate or the

pot of assets that you have in your

bankruptcy and in a chapter 7 the

trustee looks to see if there are any

assets that could be sold to raise money

to pay your creditors that's their main

job because the chapter 7 is in effect a

liquidation bankruptcy now before you

get too worried most bankruptcies I

would say about 95% of them in Chapter 7

in here in New Jersey do not result in a

liquidation because people that file

don't have assets of enough value to

exceed the exemptions that protect those

assets you're allowed to keep assets

when you file bankruptcy up to a certain

value so in the vast majority of chapter

7 cases here in New Jersey especially

here in southern New Jersey there are no

liquidations so the trustee just make

sure all the pomp and paperwork is

correct verifies the values and the

exemptions make sure that it is not an

asset case and then will close this file

sometimes they'll see assets that'll be

what's called an asset case and then

they'll administer the estate to sell

the assets but that's where the chapter

7 trustee does if you file a chapter 13

there's a trustee again acting on behalf

of creditors and they review your

bankruptcy all of your financial

situation income and expenses debts

things like that and their job is to

make sure that your plan of repayment

meets all the requirements of the

bankrupt

code and that it's feasible in other

words that you can afford to make a

payment that would pass muster under the

law and they also administer those

payments you make all your payments to

the trustee you'll make one monthly

payment to the trustee and then that

trustee will make all those payments out

to all the different creditors they'll

take care of the paperwork after that

once your plan is approved by the

Bankruptcy Court so the important thing

to bear in mind whether it's a chapter 7

or chapter 13 is that the trustee is

acting on behalf of creditors they're

not on your side and that's what they do

they administer your bankruptcy so if

you live here in southern New Jersey and

you're thinking about filing bankruptcy

and you may have some questions please

feel free to give my office a call I'll

be happy to set up an appointment in my

Woodbury office sit down with you go

over your situation and see whether

bankruptcy is right for you