Did you know that Chapter 7 bankruptcy is what one might file for personal debt? There are many advantages of filing for bankruptcy, as many loans can be forgiven or restructured. However, it typically only takes around six months to complete, and a Chapter 7 bankruptcy costs $306, and stays on your credit report for 10 years after it is arranged.
But, sometimes the pros outweigh the cons, and in these cases, it is important to know what the Chapter 7 process looks like, and when and how to get help. For instance, it is good to know exactly what your bankruptcy trustee’s role will be.
When filing Chapter 7, an impartial bankruptcy trustee is appointed to oversee and administer your case. Their duties are wide-ranging, and include:
When you file for bankruptcy, you file a petition along with other documents that disclose your personal and financial information, including information about your debts, your property, your income, and your financial affairs. Your trustee will often want to look at your pay stubs, tax returns, and other information about your assets. Their job is to make sure that your petition matches your financial documents.
Liquidating Nonexempt Assets
Luckily, some of your things can be exempt from the bankruptcy process, but everything else is sold off by your bankruptcy trustee, who is in charge of determining the value of your property and deciding whether or not they should be sold in order to pay your creditors.
Avoid Transfers or Security Interests
Before many people file for bankruptcy, they have properties transferred over to other people to avoid liquidation, or they pay back favored creditors, like family members. If your bankruptcy trustee detects any such actions, they can take the necessary actions to get the asset or funds back to distribute to creditors.
It is your bankruptcy trustee’s responsibility to make sure that your finances are restructured and all creditors are given at least something, but it is still important to enlist in bankruptcy help from a bankruptcy lawyer. If you are filing for bankruptcy under Chapter 7, then specifically a Chapter 7 bankruptcy attorney.