CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

How Long Does a Trustee Stay in Control?

When you file for bankruptcy a trustee is assigned to your case. This person is responsible for making sure your creditors are paid from the proceeds of your bankruptcy.

A trustee is not a substitute for a bankruptcy attorney. As a matter of fact, in many ways they are the opposite.

Despite their ability to answer questions and their understanding of the bankruptcy process, the trustee is not there to help you. Their sole job is to get as much money as they can from you and distribute it to your creditors. Your attorney is there to protect your rights and ensure things go as smoothly as possible for you.

Your Assets Become Part of the Bankruptcy Estate

When you file your bankruptcy, your assets become part of an estate. This includes your vehicles, real estate, jewelry, and money and bank accounts. The estate also includes money you are owed, including loans you’ve given, your rights to suing someone, and your interest in any businesses or investments.

When you file for chapter 7 bankruptcy, the trustee takes ownership of the estate and everything in it, and has the power to sell, liquidate, or pursue the value of the estate on behalf of your creditors. The only way to protect your assets from the trustee is to exempt them.

In addition to the assets you currently have, it’s important that you exempt assets you could have in the future. You need to exempt the money owed to you, through loans or money you stand to collect from a lawsuit or a business to which you have ownership. Otherwise, the trustee could potentially collect any money you receive and pass it on to your creditors.

Closing Your Bankruptcy Case

Your trustee only has control of your estate until the bankruptcy is complete. However, if something was in progress during your bankruptcy and you don’t collect the money until later, your trustee could still gain access to it.

For instance, if you’re in the process of suing someone before or during your bankruptcy, and you don’t receive the compensation until years after your bankruptcy is complete, the trustee could still take the money. If the asset existed on the date the bankruptcy was filed, it is considered part of the bankruptcy estate.

The important thing to remember is that discharge does not mean your bankruptcy case is over, nor does it end the trustee’s control.

If you have assets that need to be liquidated and distributed to creditors, your bankruptcy case could potentially remain open for years. The trustee remains in control until a no-asset report is filed and the case is officially closed.

You are responsible for making sure your case is closed. Don’t assume that once you’ve received a discharge that things are complete. Sometimes, it’s even necessary to make a request to the court for the trustee to decide whether an asset will be abandoned and returned to you. Working closely with your bankruptcy attorney will ensure all of the loose ends are tied up and you are able to move forward with your life in complete financial freedom.

So how long does a trustee remain in control? It varies. There is no time limit, so you need to monitor your case and ensure it is officially closed by the court.

To learn more about the trustee’s role in bankruptcy, check out this article from FindLaw.com.

For more information about whether or not your trustee remains in control of your assets, or to schedule a time to speak to someone about filing for bankruptcy, contact the Law Offices of Robert M. Geller at 813.254.5696.

Archive

Tampa Bankruptcy Law Blog

How to Avoid Being a Victim of Scam Calls for Student Loans

Scam Calls for Student Loans Student loans are one of the biggest burdens faced by college attendees. Even students who...
Read More

Can Medical Bills Be Included in a Bankruptcy? Here’s What You Need to Know

Can medical bills be included in a bankruptcy? Medical problems are stressful enough without facing a significant debt burden after...
Read More

I’m Unemployed. Can I Still File for Bankruptcy?

Unemployed Bankruptcy Being in debt is bad enough, but if you’ve lost your job recently or accumulated debt because of...
Read More

How Will Filing for Bankruptcy Affect My Credit?

Will Bankruptcy Affect My Credit? Not paying your bills affects your credit negatively. And yet problems with credit are one...
Read More

Behind or In Default on Your Student Loan? Here’s What You Should Know

Student Loan Default If you’ve fallen behind on student loan payments or your student loans are in default, you aren’t...
Read More

Will Bankrutcy Affect My Job? Learn How Filing Affects You in the Workplace

Will Bankruptcy Affect My Job? Filing for bankruptcy raises many considerations. One of the most important is whether or not...
Read More

Can Bankruptcy Help Me If I’m Behind on Child Support?

Bankruptcy and Child Support Bankruptcy can help you with a lot of things. It can help you stop calls from...
Read More

Can You File for Bankruptcy When You’re Unemployed?

Bankruptcy and Unemployment Being in debt is bad enough, but if you’ve lost your job recently or accumulated debt because...
Read More

Bankruptcy and Eviction History

Eviction With the rate of evictions on the rise in recent months and the expectations that eviction numbers will grow,...
Read More

What to Expect Once You’ve Decided to File Bankruptcy from Home

File Bankruptcy from Home There are a few things that happen when you file bankruptcy from home. An automatic stay...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo comodo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions