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Bankruptcy Trustee Is Advocate For Creditors

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Bankruptcy Trustee Is Advocate For Creditors Powered By Docstoc
					                                               Presented by Daniel Toriola


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                                      Bankruptcy Trustee Is Advocate For Creditors
                                                     By Legal Helpers



    When a client and their attorney file for bankruptcy it is not automatically presumed that everything
listed on the petition is the exact truth. Attorneys generally will not file any claims knowing they are not
accurate, but then again, the attorney is relying on the client's honesty to insure all the appropriate
information is available.

In the majority of bankruptcy cases the attorney filing the petition has already gone through the
paperwork to determine if any claims being made are inaccurate. Once the case is filed, the trustee will
go over all information supplied by the client, looking for inaccuracies or reasons to believe fraud may
be involved.

The role of the trustee in bankruptcy to insure all creditors are treated fairly and that any non-exempt
assets are sold for the most money, which is then distributed to the creditors in accordance with their
claims.

The United States Trustee who is an officer of the Department of Justice appoints trustees. There are
no state agencies involved in a bankruptcy proceeding as all matters are handled through the federal
bankruptcy courts. They will also participate in creditor meetings and has the power to discharge of
debt if evidence of fraud or ineligibility is found with the creditor. Additionally, any actions required by
new bankruptcy laws concerning money management and budget planning will also be reviewed by
the trustee to insure the client is meeting all requirements. Typically, bankruptcy attorneys work with
the same trustees on numerous cases and know how the paperwork needs to be filed to meet specific
trustees' concerns. Any concerns with how the trustee handles a case should be left up to the attorney
to get answered.

The trustee's role in bankruptcy differs with the type of bankruptcy filed. Whether Chapter 7, Chapter
13 or a Chapter 11 for businesses, his roles to determine the true value of any assets claimed and to
protect the creditors from fraudulent claims, insuring they get a fair value of any assets. While a
Chapter 13 trustee's role is more of an overseer, they stay close to the case, representing clients to
insure payments are received and distributed according to the court's plan.

Trustees for Chapter 7 filings generally serve a one-year term while those working with Chapter 13
filings may be standing trustees serving a geographic area or a court region. Some clients may have

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                                                                                                                   Page 1
                                                Presented by Daniel Toriola


confusion over the role of a bankruptcy trustee and believe they are more interested in helping
creditors than insuring the client receives a fair chance. The In most Chapter 7 bankruptcies there are
few assets involved, however if there are it is the trustee's responsibilities include liquidating the assets
and distributing the money.

With a Chapter 13 bankruptcy filing, the trustee's job is more administrative as there will be no assets
to liquidate. They will make sure the balances claimed to be owed by the client are true and have
approval power over the repayment plan. Most attorneys will not file for Chapter 13 fir a client if they do
not have the means of meeting the payment obligations.

The trustee will accept payments from the client and distribute them to the creditors according to the
plan approved by the court.

Legal Helpers (http://www.legalhelpers.com) is a debt relief agency helping people to file for
bankruptcy relief under the bankruptcy code. We're one of the largest consumer bankruptcy firms in
America offering great service and free consultations. Bankruptcy attorneys answer the phones six
days a week.




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                                          Presented by Daniel Toriola


                                      The Trustee's Role in a Personal Bankruptcy
                                                    By James J Jones



The basic role of the trustee in bankruptcy is to make sure that all parties, including the creditors, are
treated fairly. The trustee is also responsible for making sure that any assets are sold for the most
money and that the money is distributed to the creditors.

 When you and your attorney file your bankruptcy papers, it is not automatically assumed that
everything listed is the exact truth. Attorney’s generally will not file any claims that they know are
inaccurate, but they are relying on you to provide all of the appropriate information.

 In most bankruptcy cases, the attorney will go through the paperwork to determine if any claims being
made are inaccurate. Once the case is filed, the trustee will go over all the information supplied looking
for inaccuracies or reasons to believe fraud may be involved. At this point, the trustee is acting almost
like an auditor, or an advocate for the creditors. In addition to the trustee’s inspection, your filing can be
formally audited. The audit involves the verification of the income, expenses, and assets reported on
the bankruptcy schedules and statements.

 Bankruptcy attorneys usually work with a trustee on many different cases and know how to file your
paperwork to meet a specific trustee’s concerns. Any issues with how a trustee handles a case should
be left up to the attorney to deal with. This is yet another reason to hire a bankruptcy attorney.

 The trustee is appointed by an officer of the Department of Justice called the United States Trustee.
The trustee will participate in all creditor meetings and has the power to discharge a creditor’s claims if
evidence of fraud or ineligibility is found with the creditor. In this case, they are acting as an advocate
for you. The trustee will also make sure that you are meeting any requirements you may have for
budgeting and money management.

 Trustees working with Chapter 7 filings generally serve a one-year term. The trustee’s role in a
Chapter 7 bankruptcy include liquidating any non-exempt assets in a manner that maximizes the return
to the unsecured creditors. The trustee does this by selling your property, then distributing the money
to the creditors. The trustee also has the power to consider if there are preferences or fraudulent
transfers that can be recovered from which creditors can be paid. Trustees working with Chapter 7
filings earn a fixed amount for each case (at the time of this writing, $60 / case).

 Trustees working with Chapter 13 filings may be standing trustees serving a geographic area or a
court region. In a Chapter 13 bankruptcy, the trustee’s job is more administrative as there are no
assets to liquidate. They will make sure the balances claimed are true and they have approval power
over the repayment plan. The trustee will accept payments from you and distribute them to the
creditors according to the repayment plan. Trustees working with Chapter 13 filings earn a percentage
of the money collected during the case.

 In the end, it’s important remember that even thought the trustee wants to insure that everyone is
treated fairly, this necessarily means recovering as much money as possible for the creditors.

Knowledge is power. Make sure you know your options. For more information about personal
bankruptcy go to http://PersonalBankruptcyInfo.org


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                                                                                                                           Page 3
                                Presented by Daniel Toriola




Related eBooks:

The Trustee's Role in a Personal Bankruptcy
Bankruptcy is not the Only Solution
Bankruptcy Questions
Bankruptcy – The Facts
Filing For Bankruptcy in the UK

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Patricia Johnson Patricia Johnson Management Consultant
About Sharing ideas with others. The documents may contain basic information you already know. The documents are shared, also keeping in mind the people who don't know. Also, the documents might be useful to those who think they know buy they don't know that they don't know.