Chapter 7 bankruptcy is an option of last resort for most people. This is partially because of the consequences of bankruptcy and partially because most people have negative opinions about the process and results. Bankruptcy is a process that is supposed to help people in financial distress recover when more traditional options aren’t available.
But what is a trustee in a Chapter 7 bankruptcy? Understanding that aspect of this process will make your bankruptcy proceedings go much more smoothly.
The Bankruptcy Process
Chapter 7 bankruptcy is a relatively simple process. You liquidate assets that the government doesn’t consider essential, or are not exempt by law, use any money from that liquidation to pay something towards your unsecured debts, and then wipe out any remaining unsecured debts even if they weren’t fully paid. The process takes place in a series of steps.
The Importance of a Chapter 7 Bankruptcy Trustee
It is important to note that a trustee in a Chapter 7 bankruptcy is neither your friend nor your enemy. I consider them a referee between you and your creditors. That have to make sure that the process has been fair to both sides. A Chapter 7 bankruptcy trustee is supposed to be completely neutral, making decisions based on the law. As long as you are honest with the court and with the trustee, they will likely give you the benefit of the doubt in situations where they have discretion.
Liquidating Assets
Next, the trustee will examine your assets carefully. Every asset will be categorized as exempt or non-exempt. Exempt assets are not liquidated during this process, and you aren’t punished for keeping them. Exempt assets include:
- Cars (up to a certain value)
- Most clothing
- Most household goods, furnishings, and appliances
- Public benefits like unemployment or Social Security
- Your home (up to a certain value)
- Retirement Accounts
- Pensions.
Are you considering Chapter 7 bankruptcy to escape from overwhelming debt? Contact my law firm at (407) 749-0080 to schedule an appointment to discuss your bankruptcy options.
Chapter 7 bankruptcy trustees have some discretion in their decisions. Being honest with them increases the likelihood that discretion will benefit you.
Equally importantly, the trustee acts as a shield against angry creditors. Assuming you have any assets to liquidate, the trustee decides how much of that money goes to each creditor. Because they decide, you don’t have to deal with potential blowback when a creditor feels that they should have received a larger portion of the liquidated assets.
When to Contact a Chapter 7 Bankruptcy Lawyer
The best time to contact a Chapter 7 bankruptcy lawyer is the moment you start considering the option. I provide free consultations to people considering bankruptcy because I want to increase the likelihood that they make the right decision for their financial situation. Not every person in debt qualifies for Chapter 7 bankruptcy. Some will be better off with Chapter 13 bankruptcy, and others will be better off with some form of debt counseling.
If you decide to go with Chapter 7 bankruptcy, I can make the process go more smoothly. I will help you gather all the required financial documents and file the right bankruptcy forms with the court. Additionally, I will closely watch the actions of the trustee. While Chapter 7 bankruptcy trustees are supposed to be neutral, they are still human. They can make mistakes, and they might side with creditors in a situation where they should side with the debtor. With an experienced bankruptcy attorney examining your Chapter 7 bankruptcy case throughout the process, you are less likely to be plagued by the kinds of mistakes that could cost you money or derail your case.
Contact Lewis Roberts, PA for Help with Chapter 7 Bankruptcy in Florida
The decision to file for Chapter 7 bankruptcy should never be made lightly. You should consult with an experienced bankruptcy lawyer and fully understand the process before you make any rash decisions. If you are considering bankruptcy protection in Florida, my law firm is here to assist you.
Don’t wait to contact a bankruptcy attorney. I offer free consultations so you can discuss your options without worrying about the cost. Contact my law firm at (407) 749-0080 today to schedule your free consultation.
Attorney Lewis Roberts
The weight of debts that one cannot pay carries financial stress into every waking moment. It is time for this to end. Lewis Roberts, PA, offers solutions to relieve these worries. With over 20 years of experience in helping individuals overcome the burden of debt, bankruptcy attorney Lewis Roberts presents a range of options tailored to each unique situation. Clients can trust his advice on any matter related to debts, as he identifies appropriate options and explains the paths to debt relief clearly and carefully. This ensures that clients make the best decisions for their future. [ Attorney Bio ]
