Who is a Chapter 7 Case Trustee?

The process of filing for Chapter 7 bankruptcy is very complicated and involves numerous people and parties throughout the process. It is not recommended that you navigate the legal complexities of filing for bankruptcy alone. Contact the Boca Raton bankruptcy lawyers of Eric N. Klein & Associates, P.A. at 561-353-2800 to have your questions answered and receive relevant advice for your case.

After you file for Chapter 7 bankruptcy, a trustee will be appointed to your case. This individual is tasked with liquidating any of your assets that are classified as nonexempt, as well as administering your case.

Unsecured creditors will not receive disbursements if all of your assets are exempt. If this is the case, your case trustee will generally file a “no asset” report with the bankruptcy court.

In a majority of Chapter 7 cases, creditors will not file proofs of claim since there will not be a distribution of assets. For cases in which they do file, the unsecured creditors will only be allowed to file a claim 90 days after the first creditors’ meeting.

What Does a Trustee Have the Power to Do?

The trustee’s primary job is to sell (or liquidate) any assets that are not deemed exempt in order to provide unsecured creditors with the highest possible return. The trustee only sells your assets that are clear of liens and deemed nonexempt.

In the event that a debtor is actually a business and not an individual, the trustee could maintain business operations for a limited time period if doing so would enhance the liquidation of the estate and benefit creditors.

Contact Us

If you or someone you care about is facing Chapter 7 bankruptcy, contact the Boca Raton bankruptcy attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800 for a no cost, no obligation and confidential evaluation of your case and possible options.