The Power of the Bankruptcy Trustee
When the word trustee comes to mind, you think of a trust. Just like administering a trust, a trustee can also administer a bankruptcy. The trustee in a bankruptcy case is appointed by the U.S. Department of Justice – the U.S. Trustee’s Office. This role was created in 1978 to ensure fairness in a bankruptcy case. This person is a lawyer or accountant who has an extensive bankruptcy background. They generally look for fraud. The trustee is not necessarily on your side or the federal government’s side: this person makes sure everything is done legally as well as represents the bankruptcy estate (all of your assets). The trustee is also called a panel trustee since the trustee is chosen at random and a debtor can’t choose his or her trustee. Just like a bankruptcy lawyer, the trustee gets a fee for his or her services. The trustee also gets a percentage of the assets sold.
The trustee has several responsibilities during the bankruptcy case:
The Trustee Can Clawback Assets
The trustee can also do a clawback. A clawback is when the trustee can undo a property or money transfer that was done 90 days prior to the bankruptcy filing date. The trustee can get it back and can put the asset back in the debtor’s name. Clawbacks are done for two reasons:
There are a few defenses against preferential transfers, such as the payment was a standard practice in the debtor’s industry, and the amount was less than $600, which is considered a small amount that is rarely pursued.
We Know How Trustees Work
Our attorneys understand the trustee’s role in bankruptcy cases. We know that they have extensive knowledge of the bankruptcy process and will find any red flags. The trustee’s job is not to intimidate you; he or she is simply making sure all the calculations add up. It is always best to be upfront with all of your assets and any debts you have paid off prior to filing bankruptcy. You do not want to be in a position of explaining yourself to the trustee or a bankruptcy court. We have the experience to know the questions the trustee will ask you before and during the 341 Meeting of the Creditors. Our job is to make sure you understand the more than just the basics of bankruptcy and to make the entire process quick and painless.
Contact Us Today
At Cibik & Cataldo, we offer a free consultation so you’ll know what will be expected of you in your bankruptcy case and what you can expect from us. From pre-bankruptcy planning and gathering paperwork to meeting the creditors and the bankruptcy discharge, we are with you every step of the way. No one wants to go to a lawyer for any reason, but we want you to know that we have your best interests when you are faced with declaring bankruptcy. Let us put our expertise to work for you. Call us at (215) 735-1060 to set up your bankruptcy consultation.
We are a debt relief agency that helps people
seek bankruptcy protection under federal law