When you make the difficult decision to file for bankruptcy, it’s critical to understand the impact these matters can have on your life. Unfortunately, this process is not as simple as declaring, having debts forgiven, and moving on. In fact, there are a considerable number of factors you’ll need to consider when navigating this process to ensure you can reap the full benefits of bankruptcy. One element of this process that many are unfamiliar with is the role a bankruptcy trustee plays. If you’re unsure what these individuals do, you’ll want to keep reading. In addition, you’ll discover the importance of working with Franklin County bankruptcy lawyers to assist you through these matters.
What Is a Bankruptcy Trustee?
When you file for bankruptcy, it’s important to understand that a trustee will be assigned to your case. Essentially, a trustee is an entity appointed to a bankruptcy case by the United States Trustee, which is a subsection of the Department of Justice, to oversee your case. This entity works closely with you during your filing and the court where you have filed. Because they are employed by the court, the trustee is unable to act without permission from the judge.
The exact role of the trustee will vary slightly based on the Chapter of bankruptcy you file in Ohio. Generally, when you file Chapter 7, the Trustee is responsible for seizing and liquidating your non-exempt property to repay creditors. During Chapter 13, their responsibility is to collect payments and ensure your financial obligations are met. In both chapters, the trustee is also responsible for ensuring that your filing is legally valid and all necessary paperwork is complete.
In addition, the trustee is also responsible for reviewing all financial documents regarding your case. If they notice any suspicious activity, such as the concealment of assets or falsifying information, they are obligated to report these matters to the court, which may then order the dismissal of your case.
If I Have a Trustee, Do I Need an Attorney?
There is a common misconception that, because you have a trustee assigned to your case, you do not need an attorney. However, this is far from the truth. In reality, you’ll find that the trustee is not there to provide legal advice or represent you in any legal matters related to your case. They are there to oversee your case and ensure all laws are followed.
As such, working with an attorney is critical to ensure you can protect yourself and your finances. They can assist you through these matters, such as helping you determine which chapter is best for your circumstances, filing paperwork, and representing you in court.
Bankruptcy, though often a last resort, can also be a fresh start. If you are ready to regain control of your finances, the team at Cousino & Weinzimmer can help. Contact us today to learn how we can represent you.
