“T” is for Trustee in Bankruptcy
When you file bankruptcy in Detroit you will have a Trustee appointed to review your case. There are two different types of “Trustees” that may be in involved in your bankruptcy case, Chapter 7 trustee’s and Chapter 13 Trustee’s.
Chapter 7 Bankruptcy Trustee:
In a Chapter 7 Bankruptcy, the Trustee is appointed by Department of Justice to review your case for accuracy and to the extent possible take any property or assets you have that are not protected by your bankruptcy exemptions and liquidate them to cash for the benefit of your creditors. Your Chapter 7 Trustee is only paid a small amount of money to review your case, but has the potential to make more money by discovering assets you did not disclose in your bankruptcy, or by liquidating assets that are not protected by your bankruptcy exemptions. Because of the Chapter 7 Trustee’s responsibilities it is very important that you tell me about any and all assets you have when you are filing Chapter 7 Bankruptcy.
Chapter 13 Bankruptcy Trustee:
In a Chapter 13 Bankruptcy, the Trustee is appointed by the Department of Justice to collect your Chapter 13 Payments during your case and to make payments to your creditors on your behalf. The Chapter 13 Trustee’s obligation is to your creditors, not to you, so their desire it to have you pay as much possible in to you Chapter 13 Bankruptcy. Our desire is to have you pay an affordable payment to the Chapter 13 Trustee that offers a fair distribution to your creditors, but allows you ample amount of income to live on and not go further into debt while you are in bankruptcy. Because of the Chapter 13 Trustee’s responsibilities it is very important that you tell me about all of your sources of income and all of your living expenses for me to create an affordable Chapter 13 repayment plan when you are filing Chapter 13 Bankruptcy.
As you can see above a Chapter 7 Trustee is more interested in your assets, where as a Chapter 13 Trustee is more interested in your income and expenses. Regardless of what bankruptcy you are filing with me, my advice is always to provide me with all of your income, assets, liabilities, and expenses, and let me guide you through whatever form of bankruptcy that is going to give you the greatest possible benefit for your financial situation.
Peter Behrmann is a Livonia Bankruptcy Attorney. From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy, and Foreclosure Prevention.
Photo Credit: LeoReynolds
Other Bankruptcy Attorneys articles on the Letter “T”
- Tax Refund – Bill Balena
- Taxes – Stuart T. Ing
- Tension – Cathy Moran
- Thirteen – Mitchell Goldstein
- Tools of the Trade – Bob Doig
- Transfers – Ryan D. Caldwell
- Trustee – Jay S. Fleischman
- Tax Refunds – Chris Carr
- Tax Discharge – Christopher McAvoy
- Timeshares – Bret Nason