Role of the Trustee in Bankruptcy Proceedings Explained: Chapter 13 Trustees

Once you’ve made the decision to file a personal bankruptcy and hired us, we take care of most of the work for your bankruptcy proceedings. However, there are several tips that will make your bankruptcy proceedings go smoothly and prevent miscommunication with us or the court.

Bankruptcy Proceedings Tip 1: Disclose everything.

Many people think that they have to hide property or get rid of everything so that they won’t lose it in the bankruptcy. Sometimes, this means hiding assets, transferring assets, or simply keeping things secret from their attorneys and the bankruptcy court. Don’t do it! Hiding assets or transferring assets could be considered bankruptcy fraud! In most cases, it is unnecessary.

The bankruptcy code provides for exemptions which allow debtors to protect the majority of their assets. Each state has different rules on the amount and types of property that are exempted from the bankruptcy estate, but the bottom line is always the same. A bankruptcy is not designed to take everything away from you—it’s designed to allow debtors to protect a reasonable amount of property from creditors. Even if you do have an asset that is unprotected, a skilled attorney can advise you regarding options available that would allow you to keep the piece of property.

Bankruptcy Proceedings Tip 2: Don’t make any financial decisions without consulting your attorneys (us) first.

There is an old saying that it is easier to ask forgiveness than to ask permission. That does not apply to bankruptcy proceedings. There are many things that you could do to jeopardize or complicate your bankruptcy. We’re the experts! That’s why you hired us! Let us help you figure out what to do. It is our goal to help you and give you advice which allows your bankruptcy proceedings to be smooth and successful.

Bankruptcy Proceedings Tip 3: Read everything and do your best follow instructions.

A really frustrating conversation, for you and for us, goes like this:

Client: “You never told me I needed that!”
Attorney: “Did you read that letter I sent you?”

As attorneys, we do our best to lay out, at the initial appointment, everything we think we’ll need you to give us for the bankruptcy proceedings. However, the bankruptcy code can be very complicated, and as we proceed with your bankruptcy, there may be other information we need to file your case. If that happens, we try to reach you by phone and we send you letters. It is important to read the correspondence you receive from the court or your attorney. The letters give you important new information. If you’re not sure what the letter means or what you need to do, make sure you call and ask!

Bankruptcy Proceedings Tip 4: Be patient – we’re working very hard for you.

As attorneys, we understand that our clients are in a hurry to get their case filed and move on with their lives. We do our best to get every case filed as quickly and efficiently as we can, and we’re very good at it.

However, try as we might, we can’t do everything all at once, and we have to prioritize. It is our sworn responsibility to do what is best for each of our clients. Sometimes we have an urgent issue with another client (like saving a house from being sold at sheriff’s sale), and that means our priorities change a little. You’d want the same thing if you were in danger of losing your house. But it doesn’t mean that we aren’t working diligently to get your case filed. We have a lot of experience, and promise to take care of your case and work with you through these bankruptcy proceedings as quickly as possible.

Bankruptcy forms explained