For many individuals, the prospect of filing for bankruptcy can be daunting, given the numerous factors and considerations that may influence one’s case, including the role of a bankruptcy trustee. A clear understanding of this entity’s function in your case is essential. Moreover, the importance of retaining our experienced Rapid City Bankruptcy Lawyers to navigate this process and secure debt relief cannot be overstated.
What Does a Bankruptcy Trustee Do?
When you file for bankruptcy in South Dakota, the Department of Justice appoints a trustee to manage your case. Their primary responsibility is to ensure the process is conducted fairly and that creditors receive as much as possible. It should be noted that the trustee assigned to your case must operate under the discretion of the presiding judge.
During a Chapter 7 bankruptcy case, the trustee assumes responsibility for handling your property, as you forfeit the right to ownership. Generally, they will liquidate assets per the Bankruptcy Code and utilize proceeds to repay outstanding debts. If you pursue Chapter 13, which entails the restructuring of your debts into a repayment plan, you will remit payments to your trustee, who will then distribute these assets to your creditors.
Beyond property management and creditor payments, the trustee is responsible for the accurate completion and timely submission of all required documentation. Moreover, the trustee is afforded access to your financial records throughout the duration of the case. Should any suspicious activity be detected, the trustee is legally obligated to report it to the presiding judge. For instance, if the trustee suspects asset concealment, the judge may review the evidence and potentially dismiss your case. In such an event, you will be precluded from refiling for bankruptcy for 180 days, and the automatic stay will be lifted, enabling creditors to resume all collection efforts.
Should I Retain a Lawyer if I Have a Trustee?
It’s a common misconception that the presence of a turstee ot manage the filing obviates the necessity of an experienced bankruptcy attorney. If you are contemplating this complex process, it’s crucial to understand that the trustee’s role is not to provide assistance. Their function is solely to serve the court by ensuring compliance with the orders issued in the case. Your trustee will not prioritize your best interests or offer legal counsel at any point during the proceedings.
Consequently, engaging a bankruptcy lawyer at 605 Bankruptcy is imperative when considering a filing. Your lawyer will not only aid in determining the most suitable bankruptcy option for your specific circumstances but can also help ensure the accuracy and completeness of your submitted paperwork. This can mitigate unnecessary complications and delays. Furthermore, they will collaborate with you throughout the entire process to facilitate informed decision-making.
For more information, please don’t hesitate to contact our legal team to schedule a consultation.
