Chapter 7 and the Bankruptcy Trustee

When you file for Chapter 7 bankruptcy, you will be assigned a court-appointed trustee. This person will be vital to the success of your bankruptcy filing, so it is important to understand their role in your Chapter 7 bankruptcy case.

Although your trustee has many responsibilities, the primary purpose is to get the most return for your creditors by liquidating your non-exempt assets. This does not include any property that is not held by any liens nor has a value greater than any security interests that are attached to it. The trustee can also obtain additional funds through "avoiding powers". These include but are not limited to: pursuance of fraudulent conveyance, isolate preferential transfers made during the 90 day period prior to filing for bankruptcy and undo pre-petition transfers of assets and property.

Should the bankruptcy filing be for a business the trustee may watch the organization during the bankruptcy period. This will only be an option if the trustee believes that keeping the business open is beneficial to satisfying creditor needs.

If you have questions about Chapter 7, now is the time to contact a Chicago Chapter 7 bankruptcy attorney from our law office who can inform you of your options, provide counsel and help you get through the process with ease.