One of the challenges many consumers face is an overwhelming amount of debt. The last few years let you make more purchases for different goods and services using easy financing and low interest rates.
Times are changing, with many consumers facing overwhelming payments and debt. The situation is becoming dire, and more people are filing for bankruptcy. Recent statistics show that these high debt levels make it harder for consumers to pay their bills. Many are turning to bankruptcy to reorganize, with the total number increasing by 10% in the last year.
A common misconception is that the bankruptcy trustee will come to your home. We dive into this question to help you understand the trustee’s responsibilities, roles, and whether they will visit your home.
The Role of the Bankruptcy Trustee
The simple answer is “no, the trustee will not visit your home.” Most proceedings occur in their office, where they will review the evidence and critical documents. A visit to your home is unnecessary and extremely rare.
The trustee’s role is to oversee your bankruptcy proceedings to maintain objectivity and ensure legal compliance. Trustees are appointed by the court and act as intermediaries between you and your creditors. Their objectives are to ensure the bankruptcy goes smoothly for everyone. You have two options when filing for personal bankruptcy — Chapters 7 and 13.
Home Visits and Chapter 7 Bankruptcy
Chapter 7 bankruptcy is called liquidation bankruptcy because the trustee reviews and sells non-exempt assets to pay creditors. The trustee has no reason to come to your home unless they feel the filing is suspicious.
For example, if you overstate your assets on the bankruptcy filing and give a different answer to the trustee. They could come to your home because these numbers are not matching, and they want to assess the situation.
The trustee can examine your assets, but these proceedings are typically conducted in the trustee’s office. The trustee will review all the information, including your assets, liabilities, expenses, income, and bankruptcy documents.
Home Visits and Chapter 13 Bankruptcy
Chapter 13 bankruptcy is when you create a repayment plan that slowly pays off your debt over a specified time (usually three to five years). The trustee is responsible for reviewing the plan and its feasibility, collecting and sending money to creditors.
The trustee’s responsibilities are not to pay you a home visit unless they see disparities and suspect illegal activities. Their assessment uses the information provided in the bankruptcy documents and hearings. The trustee will address these concerns during the court hearings, and they do not need to come to your home.
Unusual Circumstances
Home visits for the trustee are rare unless they have specific reasons for coming, such as possible fraud, non-compliance, or under/over reporting of assets. These visits stem from possible red flags raising the suspicions of the trustee.
For example, if you underreport the value of your home at $100,000, but you are living in a community where the average price is $500,000, the trustee could come to your home to verify that the information you submitted is accurate.
I recommend discussing your situation with me. I have years of experience handling the most complex bankruptcy cases and will give you objective advice. I am a four-time speaker for the National Association of Consumer Bankruptcy Attorneys. Contact me at (407) 749-0080 to schedule your free consultation. I will review your situation and discuss our options.
The Times when a Bankruptcy Trustee will Conduct a Home Inspection
The trustee would rather conduct the meetings and visits at their office. The trustee will come to your home when it is obvious that something is off and makes no sense. Some of the scenarios that could cause a trustee to come to your home are:
- Overvaluing the property
- Undervaluing the property
- Failing to list the property
- An expensive house with no personal property
- High levels of credit card debt with no assets
- A creditor provides conflicting information that contradicts your filing
- Your home is in disrepair, and the value is much lower than other properties in the area.
These are red flags that could cause the trustee to come to your home to verify the accuracy of your filing.
I recommend taking advantage of my free consultation. It is a chance to learn about your options and what we can do to protect you. The trustee wants the most accurate information, and I will guide you to protect your exempt assets.
How will the Trustee know if You Fail to Report all Assets Correctly?
The trustee reviews all the bankruptcy documents to ensure you make an honest and full disclosure. They use common sense to examine your filings and will ask questions to understand your financial situation.
It is common for the trustee to request additional documentation at the creditors’ meeting. They want to address any confusion and gain a better understanding of your financial situation. If there are discrepancies, they could come to your home to verify your assets.
I recommend giving a full and honest disclosure of your assets and liabilities. The process focuses on understanding what you have and identifying assets that could be sold to pay your creditors. In most situations, your home is protected, and the trustee does not need to visit you. The trustee would rather handle the situation in their office and have you bring them the requested information.
What Happens if the Trustee Comes to Your Home?
The trustee cannot show up at your home unannounced and demand to conduct an inspection. They must make arrangements with you before coming to the location.
The trustee can conduct the inspection themselves, but they will likely send an appraiser. The appraiser will take videos and photos to fully document everything and show the trustee the extent of your holdings.
I can help you understand a trustee’s role and when inspections are needed. I have years of experience handling these cases and will guide you through the process. Bankruptcy is a fresh start, but you must be honest and transparent to ensure everything goes smoothly.
Can the Trustee take Property without Consent?
The trustee does not have the power to take anything from your home if you have a disagreement over its part in the case. Anything the trustee finds suspicious (such as exempt assets) requires filing an objection with the courts.
A judge decides whether or not the property you claimed as exempt falls into this category. The trustee must show legitimate reasons why your property should be reclassified as non-exempt. The courts must agree with the trustee’s motion before handing anything to them.
What are the Red Flags the Trustee Uses?
In addition to the above factors, there are certain situations when the trustee might become suspicious:
- Closed investment and bank accounts
- Undervalued assets listed in the filing
- Missing information and records
- Debts that are not listed in the filing
- Claims that your property was stolen, but there are no insurance claims, police reports, or financial records
- Paperwork and payments for a safe deposit box
- Income from no clear sources
- Outstanding insurance claims
- Property transfers conducted recently.
These are the most common red flags that will cause the trustee to become suspicious. They will normally ask for more documentation and give you time to get them the proper information. When these requests are not met, the trustee could set up a time to come to your home and verify these assets.
Why Choose Us?
Filing for bankruptcy can be complex, and you need a skilled bankruptcy attorney to guide you. All bankruptcies involve a trustee that oversees your case, and they could liquidate certain assets to pay off your creditors.
I work with the courts and trustees to ensure your rights are respected. I will discuss our options to help you make intelligent decisions.
I have years of experience working on these cases and will put my knowledge to work for you. My track record speaks for itself with my favorable reviews from clients I helped through similar challenges as yours. No two cases are the same, but experience and knowledge matter to ensure you get the protections you need. I am focused on helping you to get a fresh start so you can get your life back and stop worrying.
I respond promptly to your messages, calls, texts, and emails. My job is to ensure you get the maximum protection under the law to start over. Easy financing can be a double-edged sword, and you need me to clarify the situation. The bankruptcy laws are complex, and the trustees play a critical role. I work with you to ensure that everything goes as planned so you can relax and have peace of mind.
Contact me at (407) 749-0080 to schedule your free consultation about your situation. I will review everything and discuss our options to offer you the maximum financial relief. You will get practical and objective legal advice guiding you through bankruptcy.
