If you are considering filing for bankruptcy, you will need to know what a bankruptcy trustee in Cortland, NY, does. Like many aspects of bankruptcy, you may not be completely aware of what a bankruptcy trustee does or how they can affect your bankruptcy case.
At Grady BK, PLLC, we strive to provide our clients with clarity and confidence as they proceed with their bankruptcy case. We will work with you one-on-one to help you find the best bankruptcy option for your situation so that you can get the best possible outcome. In this article, we will be discussing what a bankruptcy trustee in Cortland, NY, does and how they can impact your bankruptcy case.
What Does a Bankruptcy Trustee Do?
Before we discuss what a bankruptcy trustee does, what exactly is a bankruptcy trustee? A bankruptcy trustee is a third-party who will help to manage your bankruptcy case. The trustee doesn’t work for you, and they don’t work for a creditor either, which allows them to manage the case fairly.
The main role of a trustee is to make sure the bankruptcy case proceeds according to bankruptcy law and that everybody is treated fairly and equally. They will also be randomly assigned, so you don’t have the option of picking out your own bankruptcy trustee.
Even though a trustee will oversee your bankruptcy case, this doesn’t mean that you should move forward without legal representation. You should still take the step of hiring a bankruptcy attorney to help you with the filing process, as well as ensuring your rights are upheld.
Trustee Powers in Chapter 7
Like many aspects of bankruptcy, the powers of a bankruptcy trustee will look different depending on the type of bankruptcy. So, for a Chapter 7 trustee in NY, they will handle a variety of tasks that the trustee may not handle if you were to file for Chapter 13.
Here is a breakdown of the general tasks that a Chapter 7 trustee will manage:
- Presiding over the 341 meeting in Cortland, NY.
- Collecting the estate’s property.
- Reviewing documents.
- Identifying and recovering fraudulent or preferential transfers.
- Examining the Proofs of Claim and objecting if necessary.
- Handling non-exempt property.
- Filing a final accounting with the United States trustee and the court.
- Sending information to the involved parties.
These are just a handful of the tasks that a trustee will handle for an average Chapter 7 bankruptcy case. These may or may not apply to your specific situation, as every case will look different.
Trustee Responsibilities in Chapter 13
If you do not qualify for Chapter 7 bankruptcy, the next best option is to file for Chapter 13 bankruptcy. When you do this, your case will be assigned a bankruptcy trustee in Cortland, NY, who is familiar with the specific tasks they will need to handle for Chapter 13 cases. The trustee will handle very specific tasks to ensure the repayment plan is realistic, in line with bankruptcy laws, and is still fair to creditors.
Here are the most important tasks a Chapter 13 bankruptcy trustee will handle:
- Evaluating the repayment plan to ensure it meets the legal criteria, while being realistic for your financial situation.
- Collecting and distributing the repayment plan payments, ensuring they are made every month and go to the right creditors.
- Monitoring compliance by making sure you are following the rules of your repayment plan.
- Scheduling and presiding over the 341 meeting.
- Attend the confirmation plan hearing as well as any hearings for modifying the already established repayment plan.
What Trustees Look for in Cortland Cases
It’s important to remember that bankruptcy trustees are third parties who are simply there to make sure bankruptcy cases proceed as they should. They won’t show favoritism towards you or a particular creditor. That being said, the trustee is there to make sure your information is correct, and you have adequately met New York bankruptcy laws.
Because of this, part of the job of a bankruptcy trustee is to look for things that would make you ineligible for bankruptcy. This includes signs of fraud, hidden income, or asset transfers. They will also look for any red flags that could indicate these things, which could create delays for your case.
To protect yourself when filing for bankruptcy, it is crucial that you hire a bankruptcy attorney in Cortland, NY. An attorney will be familiar with the bankruptcy process and can help you with every step of the process so that you avoid running into issues. This will be especially important if the bankruptcy trustee notices any red flags, as this could easily be a misunderstanding or a simple error.
FAQ:
Can a trustee take my tax refund or bonus?
Yes, if your tax refund or bonus is non-exempt and considered to be part of your estate, the trustee may seize this. However, keep in mind that trustees cannot take anything for themselves; they would simply take your tax refund or bonus for the purpose of paying unsecured creditors.
What happens if the trustee objects to my bankruptcy?
One of the powers a bankruptcy trustee has is to object to your bankruptcy case. If that happens, the court may hold a hearing and may even deny discharge.
Cortland’s Top Compassionate Bankruptcy Attorney
There are many aspects of filing for bankruptcy that you should be aware of, such as the role of a bankruptcy trustee. At Grady BK, PLLC, we treat all of our clients as though they were our only client, helping them to navigate the bankruptcy process. We can help you understand what a bankruptcy trustee does, as well as decide on the best type of bankruptcy for your situation.
At Grady BK, PLLC, we understand that the bankruptcy process can feel very overwhelming, especially if you don’t know what to expect. That is why we strive to provide straightforward guidance every step of the way, so that you can proceed with confidence.
Contact us today at 315-299-9005 to discuss your situation with a bankruptcy attorney in Cortland, NY. Our team at Grady BK, PLLC, is here to help you file for bankruptcy, no matter your situation or where you are in the bankruptcy process.
